How to buy or sell a car and not get scammed?

[375instroke]

What are the current scams going on today?  If you're selling a car for several tens of thousands, is it realistic to ask for cash?  Would you take a check?  If the title matches their driver's license, is there more one can do before handing over the money?  When I got my Charger, the guy was making payments, so we went to the bank, and I paid off the balance of the loan, and the bank signed over the title to him, and he signed it over to me.  I still felt like it was possible something was wrong.  I was paranoid, but I'd rather be that than get taken.

[bakerhillpins]

There's probably an issue with every type of transaction out there. Cash can be counterfeit, checks can be faked, is it a real title, the list goes on and on....  Personally, I'd never take a check, not even a bank check. I'd take a wire transfer but not a check.    Paranoia isn't something to be afraid of IMHO, it's usually a good mechanism for keeping you alert to what's going on during these types of transactions. I can't afford to make stupid choices with my $$.

I figure it depends upon how much money the car is worth. I.e. If you are buying a car for a couple K that's just "a car" then probably just show up with a trailer and cash and at least one other person. If I was selling cash would probably be fine. As the $$ go up then you have to start asking yourself what adjustments you want to make.

I carried enough for a deposit on any car I went to see and setup to do a wire transfer for the remainder. I talked to the local branch manager before I went out so they knew I could possibly be calling in a wire transfer. If the seller didn't want a wire (my guess would be to avoid records and taxes) then I would have dealt with that if it had happened but it didn't. I also called in the VIN to my local PD and insurance to have them run a stolen vehicle check before the wire. In my case the negotiations went past the deadline for transfer that day. I left the deposit and they gave me a receipt for the car. As the situation unfolded I felt I could trust this seller. I promised a wire the next day, we did it, and they held the car for me till the end of the week when I went down and picked it up. In the end they were more than honest and came through with EVERY single promise that they made that day. The really sad part was how "unexpected" that is these days but it made getting my Charger even better.

There were other cars that I _really_really_ wanted that made me feel uncomfortable and I ended up not going through with it. I still lust for those cars but in the end I didn't get burned and am very happy with where I am.

[alfaitalia]

I here ya...I kinda expect cash on collection and I think most folks in the UK would be the same up to about £5000....above that it gets more difficult and buyers are uncomfortable about carrying that much bangers and mash around. Usually then I take a cash deposit and a bank transfers....lets face it  a few clicks on their phone and its done...and a few clicks on yours to see it in your account. Cant really go wrong after that....if it does its the banks problem for letting the transaction pass. I wont take paypal on a big amount....even if they do offer to pay the charges. Paypal payments are not difficult to reverse...even a few days later.

[Troy]

I haven't yet decided what my personal limit is for carrying cash. Mostly because it seems like I only buy cheap cars and projects. Ugh! For classic cars, I have paid with wire transfers twice, been paid with an overseas wire transfer once, transferred a title at my bank where the seller also had an account (they made a cashier's check from my account then deposited it into his so it was nearly instantaneous), and financed two cars. Financing was by far the most "secure" way for distant parties even if I had to eat the loan fees and some interest. There has to be an "inspection" of the car first and the check requires signatures of buyer and seller. Sometimes people get wierded out by the process and/or may not be happy that the actual amount paid is recorded on the title but it's better than having a pile of money walk off without any recourse.

The biggest scams (in my opinion) are the same ones we've had for years: online "dealers" who prey on the "dreams" of certain buyers and convince them to purchase a car online without seeing it in person or having it inspected. Quite often, a rusted out, hacked up POS missing a bunch of parts gets delivered in the dark and the buyer's dream becomes a nightmare. Don't let your heart decide how to spend your money - especially when the dollar amount is significant. Not all of us can afford to make a mistake that costs years or decades worth of savings. Even without the dealer part, always make sure someone verifies the car in person.

Check the title closely and/or do the transaction at the BMV. In Ohio the seller has to have the title notarized when they sign it and I can't tell you how many times I've had to refuse a signed title without a notary stamp. It's not valid! The sticky part is that the notary also wants to see the "sold to" information filled in. If I haven't been paid I am not signing a title over to anyone! This is another reason it makes sense to transfer at the BMV or a bank.

Related scams are being robbed when you show up and there's no car! I don't know that this happens on cars that cost tens of thousands of dollars so much as deals-that-are-too-good-to-be-true.

I here ya...I kinda expect cash on collection and I think most folks in the UK would be the same up to about £5000....above that it gets more difficult and buyers are uncomfortable about carrying that much bangers and mash around. Usually then I take a cash deposit and a bank transfers....lets face it  a few clicks on their phone and its done...and a few clicks on yours to see it in your account. Cant really go wrong after that....if it does its the banks problem for letting the transaction pass. I wont take paypal on a big amount....even if they do offer to pay the charges. Paypal payments are not difficult to reverse...even a few days later.

It's interesting because the US is sorely behind the rest of the world in personal electronic funds transfers. People still pay for groceries with written checks here! The company I work for has locations all over the world (some I get to travel to!) and the difficulty of sending payments electronically here is astonishing. It is the accepted method for just about all payments in most of the world. It's how/why services like PayPal even exist even with their fees and charges. The convenience overrides the cost.

And we still have to sign for credit card receipts even with a chip. Something archaic in a lot of other countries.

Troy

[cdr]

Carrying cash, it can be taken from you by the Police & you have NO rights, see Forfeiture and Seizure laws, you MIGHT be doing illegal activities ,so we will just take your cash.   Talk about a scam 

[Tilar]

I use cash for almost every large purchase. I'm old fashioned enough that I keep cash around, probably more than I should. I still write a few checks but I use my check card a lot when buying everyday things. If you buy something big from me it's wire transfer or cash.

When I buy a car, I ALWAYS check the VIN on the title against the vehicle once a price has been established, No exceptions. We don't go to a notary until that has happened.

[RallyeMike]

If someone will take a check, bank order, or or postal order, I'll happily do that but I never accept them. There is no way to be sure they are real without waiting for the funds to clear in your account. If the buyer will wait a week, then maybe ok.

Cash and wire transfer are the way to go, but some paranoid throw-backs won't do wire transfer leaving cash the only option.

[bakerhillpins]

Carrying cash, it can be taken from you by the Police & you have NO rights, see Forfeiture and Seizure laws, you MIGHT be doing illegal activities ,so we will just take your cash.   Talk about a scam  

Ain't that a kicker!   It amazes me how s**t like this gets on the books and stays there???