How To Avoid Scams When Selling Your Car

Selling your car to a stranger? Watch out for fraudulent buyers. We’ll discuss common scams and tricks along with smart tactics you can use for a safe car sale.

DealNow helps put scammers out of business. It gives you a complete suite of transaction tools to sell your car safely and quickly. Create a private deal room, invite prospective buyers, and close the deal securely from the convenience of your phone.

We’ll discuss the best ways to sell your car without getting scammed and how DealNow helps.

Verify the Buyer's Identity

Scammers thrive on anonymity. They use fake profiles, burner phones, and temporary email addresses to avoid getting caught. Buyer verification is your first line of defense against scams. Since most car listing sites lack identity checks, you’ll need some outside help. You could request a photo of the buyer’s ID and verify it through a third party, but that’s awkward and time-consuming.

DealNow solves anonymity by requiring buyers and sellers to verify their identity during account creation. Found an interested buyer? Invite them to your DealNow dealroom. We’ll run the identity check so you know you’re dealing with a person’s real identity as soon as the sale begins.

Verify the Buyer’s Funds

A fake name isn’t the only thing scammers are hiding—many of them are also broke. Some scammers want to steal your car through payment fraud. You need proof that a potential buyer can actually afford your car the purchase.

Funds verification combined with an identity check will weed out most bad actors. Plus, you won’t waste time showing your car to well-meaning buyers who can’t afford it anyway.

Your DealNow dealroom handles both checks automatically. You’ll know right away if you’ve got a legitimate buyer with real money ready to close the deal.

Use a Bill of Sale

A bill of sale legally protects you (if your buyer signs with their real identity). This document memorializes the sale and serves as evidence if the buyer tries to cause problems later.

Here’s what your bill of sale needs:

  • Car details (make, model, year, VIN)
  • Sale price and payment method
  • The date of sale
  • Both your names and signatures
  • Any warranties or “as-is” statements
  • The odometer reading
  • Car condition and known issues
  • Title transfer details

DealNow handles all this automatically with a state-compliant digital bill of sale. You and the buyer sign in the app, and your copy is saved and protected against loss, theft, or destruction.

Use a Secure Payment Method

Car scams often involve shady forms of payment. When it’s time to get paid, you’re better off avoiding these payment types:

  • Credit cards: Scammers can pay with stolen credit cards. They might also use their own card and then report fraud, leaving you tied up in a dispute with their credit card company.
  • Personal checks: Scammers write bad checks and pressure you to finish the sale before it clears. By the time the bank tells you the check bounced, they’re long gone.
  • Traveler’s checks: Scammers are skilled at forging these. Unlike cashier’s checks, traveler’s checks aren’t tied to any bank account or buyer identity.

Even supposedly secure payment methods put you at risk and require extra verification steps. Cash can be counterfeited, cashier’s checks can be forged, wire transfer requests might be attempts to steal your banking info, and some escrow companies are elaborate frauds set up by the scammer.

DealNow makes it easy, fast, and secure to get paid for your car, no matter the price. You get the immediacy of cash, the security of wire transfers, and the trust of escrow services without having to verify bills, checks, or companies.

Trust Your Instincts

Your gut feeling is your strongest defense against fraud. When something doesn’t feel right—even if you can’t explain why—walk away. You’ll find another buyer for your car.

  • Never let a buyer rush you or pressure you into making the sale.
  • Take all the time you need to think through every part of the deal.
  • Bring someone you trust when you meet potential buyers.
  • Use DealNow to handle the transaction.

Common Car Sale Scams

Now that we’ve covered preventive measures, let’s break down the most popular scams targeting car sellers.

Payment Scams

  1. Counterfeit cash: The buyer shows up with fake bills. By the time you realize the money is counterfeit, the buyer and your car are gone. Take cash deals to the bank where professionals can verify every bill, or learn how to spot fakes yourself and take your time checking.
  2. Bounced personal checks: A scammer hands you a check knowing it’ll bounce. They’ll use pressure tactics or sob stories to convince you to finish the sale before it clears. Once the check bounces, you’ve lost both your car and payment. Skip personal checks from strangers—there are safer ways to get paid.
  3. Fraudulent cashier’s checks: This scam involves a fake but convincing cashier’s check. Your financial institution will credit your account. Days later, they spot the fraudulent activity and pull the money back, but your car and the scammer are gone. Always verify the cashier’s checks at the issuing bank.
  4. Credit card fraud: Scammers pay with stolen cards or dispute legitimate charges. Either way, the payment gets reversed and you lose thousands of dollars and your car. For high-value car sales, avoid credit cards. The risk of chargebacks and fraud disputes isn’t worth it.
  5. Fake escrow service: The buyer directs you to what looks like a legitimate escrow website. You create an account, enter your banking info, and see their “payment” arrive. After you hand over your car, you discover the whole site was fake and no real money was ever sent—and the buyer disappears with your car.
  6. Overpayment scam: The buyer “accidentally” writes a check for too much. They ask you to wire back the extra, usually with a believable story. You deposit their check and return the difference, trying to be helpful. Their check bounces, leaving you without the money you wired plus your car.

Identity Theft

These con artists care more about stealing your info than buying your car:

  1. They act interested in your car while phishing for personal details, making up reasons they need extra information to send payment.
  2. They might request your banking information, social security number, or other sensitive data for “verification purposes.”
  3. Some create professional-looking payment websites designed to capture and steal your personal information.


Don’t share private details with strangers or unknown websites. If you need to do a wire transfer, handle it in person at your bank where you can give information directly to bank staff.

Or make it simple—use DealNow’s secure messaging to talk with potential buyers. You can discuss the sale and receive payment without revealing your phone number, email address, or other private information.

The "Out-of-State Buyer" Scam

This trick preys on sellers who want a fast car sale:

  1. You get a message from someone claiming they’re moving or buying from far away.
  2. They accept your price without seeing the car.
  3. They use a story to rush the process—a surprise gift, they’re leaving the country, they’ve got a deadline, etc.
  4. Watch for fake payment confirmations or unusual payment requests.
  5. They’ve got a “transport service” lined up (usually their partner in crime) to pick up your car.


Not every distant buyer is a scammer. DealNow handles
long-distance car sales safely by checking the buyer’s identity and making it easy to receive payment.

How To Spot Red Flags

When selling your car privately, watch for these warning signals.

Suspicious Behavior

  • Won’t meet in person or agree to a public meeting spot.
  • Rushing to close without checking the car or taking a test drive.
  • Takes your asking price instantly without trying to negotiate.
  • Creates pressure by claiming everything needs to happen fast.

Fishy Communication

  • Emails come from random or changing addresses.
  • Writing style doesn’t match who they claim to be.
  • Messages feel copied and pasted, could apply to any car.

Payment Warning Signs

  • Wants to send more than your asking price, then get some back.
  • Pushes you to use payment services you’ve never heard of.
  • Asks for your banking information without a good reason.

Strange Demands

  • Wants private info they don’t need (such as your SSN or ID copies).
  • Tries to make the deal overly complex with multiple steps.
  • Plans to buy and ship without seeing the car first.


Has long, detailed stories about why they need your car immediately.

DealNow: The Safe Way To Sell Your Car

We built DealNow to shut down car sale scams and make transactions fast and simple. DealNow has everything you need to sell your car safely.

  • Get paid instantly: No waiting around—receive any amount, any time, any day.
  • Bank-level protection: Your money stays safe in an FDIC-insured account with easy off-boarding to your preferred account.
  • Real buyers only: Stop dealing with fakes. We verify every buyer’s identity so you know they’re legitimate.
  • No payment tricks: Forget about overpayment scams. You get exactly what you agreed on.
  • Built-in trust: Our digital bill of sale works like escrow without the hassle. A digital bill of sale brings trust to the transaction.
  • Secure messaging: Chat with buyers in your private dealroom without exposing your contact info.
  • Sell anywhere: Got an out-of-state buyer? No problem. DealNow makes distant deals as secure and simple as local ones.


After trying DealNow, you’ll never want to sell a car any other way.

Vehicle Scams FAQ

How do I avoid scams when selling a car on Craigslist?

List your car on Craigslist, but bring the transaction to DealNow. We verify buyer identity, handle payments securely, and protect your personal information. No more worrying about fake cashier’s checks or counterfeit cash.

Facebook Marketplace is great for finding buyers, but you don’t know who you’re dealing with. Use it to list your car, then bring your buyer to DealNow. Our platform verifies real buyers, processes instant secure payments, and gives you a legal bill of sale—all through our mobile app.

DealNow offers the best security when selling your car. Unlike cash or checks (which might be fake), DealNow gives you instant, verified transfers of any amount. Your funds are protected with bank-level security and FDIC insurance, and you never have to share banking details with strangers.

Facebook Marketplace helps you find buyers but offers zero verification. Anyone can create a fake profile or show up with counterfeit cash. List on Facebook if you want, but close the deal with DealNow. We check buyer identity, verify funds, and handle payments securely.

Watch out for these warning signs:

  • Wants to avoid physical meetings
  • Takes your price without negotiating
  • Claims to be out of state
  • Wants to pay more than asking price
  • Pressures you to act fast
  • Asks for personal banking info
  • Wants to use an unusual method of payment

Skip the scammers entirely. Use DealNow to verify buyers and handle payments safely.

Start by verifying their identity and funds. Most online scams start with fake identities. DealNow handles both checks automatically—verifying real buyers and making sure they can afford your car before you meet.

Private sales can bring better prices but also attract fraudulent buyers. Use DealNow to protect yourself—we verify buyers, handle payments securely, and provide a digital bill of sale, making private sales as safe as dealerships.

Watch for buyers who won’t meet in person, accept your price instantly, or pressure you to skip normal precautions. DealNow protects you from online scams by verifying every buyer’s identity and handling payments securely.

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