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Classic Car Sale scam: protecting Yourself When Selling Out of State
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Selling a beloved classic car can be bittersweet, especially when finding a buyer from a distance. Though, a recent surge in scams targeting sellers has prompted warnings about fraudulent transactions, especially those involving checks. The core issue: scammers exploit the trust associated with seemingly legitimate payment methods to steal vehicles.
The Rising Threat of Car Sale Scams
Many individuals are now listing vehicles online, expanding their potential buyer pool nationally. This increased reach, while beneficial, also opens the door to sophisticated scams. Scammers often pose as eager buyers willing to pay a premium, but their methods are designed to ultimately leave you without your car and your money.
did You Know? Vehicle fraud is consistently ranked among the top scams reported to the Federal Trade Commission (FTC).
How the scam Works
The typical scenario involves an out-of-state buyer offering to purchase a classic car. they send a check – often for more than the agreed-upon price – and request that the seller cash it immediately. The buyer then explains the overpayment is to cover shipping costs. Once the check clears (or appears to), the buyer arranges for a third-party transport company to pick up the vehicle. however, the check is ultimately fraudulent, and the seller is responsible for the full amount, including the “shipping” funds they sent to the scammer.
Once the check clears, the buyer will send a trailer to pick up the car.
– Quentin Fottrell, 2025-11-10 11:30:00
Key Red Flags to Watch For
Identifying potential scams requires vigilance. Be wary of these common indicators:
| Red Flag | Action |
|---|---|
| Overpayment | Reject immediately |
| Urgency | Slow down the process |
| Third-Party Transport | Verify independently |
| out-of-State Buyer | increased caution needed |
| Unusual Payment Method | Demand secure options |
Protecting Yourself During a Car Sale
Several steps can substantially reduce your risk of falling victim to a car sale scam:
- Verify the Check: Do not rely solely on your bank’s initial clearance. Contact the issuing bank directly to confirm the funds are available and legitimate.
- Secure Payment Methods: Insist on a secure payment method like a cashier’s check verified by the bank, a wire transfer (though these can also be reversed by scammers, so proceed with caution), or cash in person.
- Independent Transport: If shipping is necessary, arrange the transport yourself thru a reputable company you’ve researched. Do not use a transport company recommended by the buyer.
- Delay Release of Vehicle: Do not release the vehicle until you are absolutely certain the funds are secure and verified.
Pro Tip: Always meet the buyer in a safe, public location – preferably at your bank – for the transaction.
Timeline of a Typical Scam
Understanding the scam’s progression can help you identify and avoid it:
- Buyer contacts seller with an offer.
- Buyer sends a check for more than the agreed price.
- Seller cashes the check and sends back the overpayment for “shipping.”
- Buyer arranges for a third-party transport company.
- The check bounces, leaving the seller liable for the funds.
- The vehicle is transported, and the seller is left with a financial loss.
federal Trade Commission: “Be wary of buyers who offer to pay with a cashier’s check or official check, and then ask you to send them back the difference.”
The FTC provides