Selling a car can be a complicated enough experience at the best of times, even if the eventual payout is worth it. Unfortunately though, it’s not without risk – there are still plenty of scams around that can potentially leave you both carless and out of pocket.
Whether you're selling privately or through other means, there are always scammers looking for ways to take advantage of unsuspecting sellers. When you sell your car through our online car auctions here at RAW2K, we take a range of measures designed to ensure that your experience is safe and secure. In that spirit, we thought we’d clue you in to some of the most prevalent car buying scams – here’s what to watch out for!
1. Payment fraud and fake bank transfers
One of the most common scams targeting car sellers is payment fraud. Scammers will often try to convince you that they’ve made a bank transfer or another form of payment, but it’s all part of their trick to get the car without handing over any real money. In many cases, they may send a fake confirmation email or even show you a fake bank transfer receipt that appears genuine.
A classic sign of this scam is when the buyer insists on paying via methods that are harder to trace, such as wire transfers or mobile payment apps. These methods can be difficult to track, and scammers exploit that to disappear once they’ve received your car.
To avoid the pitfalls of this approach, always wait until the payment has cleared before handing over the keys or the vehicle. If a buyer pressures you to release the car before the payment is confirmed, don’t hesitate to take a step back and reconsider the transaction. Also, be cautious if you receive unsolicited offers, especially ones that seem too good to be true.
2. Overpayment scams
In an overpayment scam, the fraudster offers to pay more than the asking price for your car. They might explain that they made a mistake in calculating the price or offer a “generous” bonus for a quick sale. After this, they’ll ask you to refund the difference, typically via bank transfer or cash.
At first glance, this might seem like a lucrative deal, but it’s all a scam. Once you refund the excess amount, you’ll later discover that the original payment was either cancelled or was never made in the first place. Essentially, you’ll end up losing both your car and the money you refunded to the scammer.
Always be cautious if a buyer offers more than the asking price and requests a refund. Stick to your original price, and if something feels off, trust your instincts. You can protect yourself by verifying the payment thoroughly before transferring any funds or handing over the car.
3. The counterfeit cheque scam
Though less prevalent these days due to the decline in cheque use, the counterfeit cheque scam is still one to be aware of. In this scam, a buyer presents you with a cheque that appears legitimate, often for a higher amount than the agreed sale price. They’ll ask you to deposit the cheque and then wait for it to clear before handing over the car.
However, the cheque turns out to be fake. By the time the bank identifies that it’s fraudulent, you’ve already given the buyer the vehicle. The result is that you lose both your car and the payment, as the bank will eventually inform you that the cheque wasn’t genuine.
To protect yourself, always ensure that any cheque payment has cleared in your account before releasing the car. If a cheque is your only option, take the extra step of contacting your bank to verify the cheque’s authenticity before proceeding with the sale.
Above all, trust your instincts – if something is too good to be true, it probably is!
If you’re confident you’ve made all the precautions you need to in order to sell your car, you’re in exactly the right place. We refresh our online car auctions on a daily and weekly basis, showcasing a variety of makes and models from some of the world’s top manufacturers, including popular brands like Peugeot, Honda, Citroen, and many more, so our online car auctions are always a great place for buyers to find great deals. Ready to find out how much they’ll pay for yours?
