CARS.COM — Whether you’re dealing with a buyer in person, via email or over the telephone, always be careful when accepting payment as the seller of a used car. Scam artists are good at what they do and count on your eagerness to sell your old car.
Related: Fraud Awareness
Remember these steps to make yourself less vulnerable as a vehicle seller:
- Never wire money to a potential buyer under any circ*mstances. If the buyer for your used car pays via a check or money order rather than cash, accept only the exact amount of the negotiated sale price for the vehicle.
- Confirm with the issuing bank (or lender if it’s a payment with loan financing) that the check is valid. Look up contact information for the bank on your own, as a forged check likely will include a phony bank address and phone number.
- When possible, go to the bank with the buyer to verify the check’s authenticity and sufficient funds. In addition, to be safe, it’s a good idea to request a cashier’s check for the money that’s drawn from a local branch rather than a personal check. The vehicle buyer may have to pay a fee, but you’ll avoid a likely bigger one for taking a bad check that bounces.
- Stick to your timeline and don’t rush the transaction. You’re a private seller of a used car, not a new car dealership with a financing office to handle the paperwork. If the bank is closed when your customer wants to pay you the money by check for the vehicle, hold off until you can verify the check’s validity. To be sure you are safe from an insufficient funds problem, try to negotiate the option to wait until the check you accept clears the bank before handing over ownership of the vehicle to your customer. How long that takes to see the funds deposited in your bank account will depend on your institution, but it should be less than a week. Think of it as test drive for the check you accept.
- If the buyer wants the option to pay by money order, follow the same safe-payment guidelines for sellers when accepting a money order as for accepting a check. Verify the customer name and amount of the money order with the issuing bank, and request the payment be with a money order from a localinstitutionwhenever possible.
- If the risk of those methods leave you feeling squeamish as a private seller of your used car, there’s always cold, hard cash.
- If you have any suspicions during the transaction, remember that you’re not required to move forward. Contact the Cars.com Fraud Department at fraud@cars.com if you have any questions or complaints about a vehicle listed on Cars.com.
FAQs
What type of payment should I accept for my used car? Cash and bank drafts that are delivered in person are the best and most secure forms of payment to accept when privately selling your used car. Avoid personal cheques or wire transfers as these are more susceptible to fraud. More tips on avoiding used car fraud.
What is the safest form of payment for a car sale? ›
The safest payment method for private car sales is usually a direct bank transfer (wire transfer), which requires the buyer to transfer funds from their bank account to yours. Once your bank has confirmed that the funds have cleared, you can transfer vehicle ownership.
What is the safest payment method when selling online? ›
Credit cards, debit cards, digital wallets, bank transfers, and checks are the safest ways for merchants to receive customer payments.
What is the best payment for a used car? ›
The most efficient way to pay for your vehicle is to bring a cashier's check, which is more secure than a personal check, and guarantees that the funds are actually available.
Is it safe to take a cashier's check for a car? ›
No, a cashier's check really isn't any safer than a personal check as payment when selling your car. They can still be faked and they can still bounce. The feel more official, which makes people think nothing can go wrong with them, but that's simply not true.
What is the safest way to receive money from a buyer? ›
There are secure online payment platforms that offer buyer protection and secure transactions. Platforms like PayPal and Stripe provide safeguards against fraud and unauthorized transactions. These platforms often have dispute resolution processes in place to protect both the buyer and the seller.
What form of payment should you avoid when selling a car? ›
Personal and Cashier's Checks
Unfortunately, potential for fraud still exists. There is no guarantee that the buyer actually has the money in the account to cover the check, and you may find yourself in a situation with a bounced check.
Which payment method is the least risk for a seller? ›
With cash-in-advance payment terms, an exporter can avoid credit risk because payment is received before the ownership of the goods is transferred.
What is the preferred payment method for buying a car? ›
Buying a car in cash can be a good financial move. It helps you avoid unnecessary debt, and you don't have to worry about making monthly loan payments. It also forces you to purchase a car you can reasonably afford.
What payment method to use to not get scammed? ›
By and large, credit cards are easily the most secure and safe payment method to use when you shop online. Credit cards use online security features like encryption and fraud monitoring to keep your accounts and personal information safe.
A: Both credit cards and ACH transactions face security risks, ACH payments are generally considered safer. ACH transactions have a lengthy authorization process and banks have fraud detection measures in place, so these payments are less likely to go through unauthorized.
Is Zelle a safe payment method? ›
Zelle® does not offer purchase protection, so pay it safe. Only send money to people you personally know and trust. 4. Confirm your recipient's contact information: Make sure you have the correct U.S. mobile phone number or email address for the person you want to send money to.
Is it a good idea to put a down payment on a used car? ›
It's good practice to make a down payment of at least 20% on a new car (10% for used). A larger down payment can also help you nab a better interest rate. But how much a down payment should be for a car isn't black and white. If you can't afford 10% or 20%, the best down payment is the one you can afford.
Can you write a check for a used car? ›
If you're going to purchase a used car from a private owner using your own personal check, then you do have the peace of mind knowing that there will be a record of the check being cashed and/or deposited and by whom.
