Used car scams to avoid: the red flags for buyers and sellers

Red flags for buyers

• A price far below the market. If it looks too good to be true, ask why.
• A seller who will not meet or let you see the car. Never pay for a car you have not seen.
• Pressure to hurry or to pay a deposit before you see it.
• A story about being overseas, deployed or moving, with the car held by a shipping company.
• A request to pay by wire, gift card or an unusual app, or to use a special escrow service you have never heard of.
• A title that is not in the seller's name, or a seller who is evasive about it.
• A seller who will not let a mechanic inspect the car.

Common scams, in plain words

• Fake escrow. The seller insists on a website that holds your money until you receive the car. The site is fake, and so is the car.
• Cloned ads. A real car's photos and description are copied into a new ad at a much lower price.
• Curbstoning. A seller who flips many cars poses as a private owner to avoid dealer rules. The car may have undisclosed problems or a bad title.
• Title washing. A branded title is moved through states to hide a salvage, flood or other history. A history report helps catch it.
• Odometer rollback. The mileage is lowered to raise the price. Look for wear that does not match.

Red flags for sellers

• An offer without seeing the car, or for more than the asking price. Then a story about why you should send back the difference.
• A check for more than the price, with a request to refund the extra. The check will bounce after you have sent real money.
• A buyer who wants to pay with a method you do not recognize, or by sending a courier or shipper.
• Requests to move to a different messaging app or to give out your phone code.
• A buyer who wants the title or keys before the money clears.

How to protect yourself

• Always see the car in person, and meet in a safe, public place.
• Run a history report on the VIN.
• Have a mechanic inspect it.
• Check that the title matches the seller's ID.
• Use a bill of sale, and keep copies of everything.
• Trust your instincts. If it feels wrong, leave.

What to do if you think you have been scammed

Contact your bank right away to try to stop or reverse the payment, report it to the Federal Trade Commission and your state's attorney general, and file a police report. The sooner you act, the better the chance of recovering something.

Common questions