Selling a used car can present complexities and potential scams. Common frauds include false payments, overvaluations and unfounded post-purchase claims. Here are some practical tips to avoid the most common scams
Navigating the second-hand car industry as a private seller can be an experience fraught with doubt and potential danger. This large and diverse market can appear like a real battlefield, where fraud lurks around every corner. Scams in the second-hand car industry can present themselves in multiple ways and can be difficult to spot for those who are inexperienced and are trying to sell a car. However, despite these difficulties, it is possible to move successfully and make the right deal not only as a buyer but, indeed, also as a seller.
false payment
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In the used car market, the most common scams concern the payment process. In these cases, the buyer may provide a false payment receipt or a check with no funds. This may appear to be a legitimate payment, however, as soon as the seller attempts to cash the check or verify the payment, the funds are discovered to be non-existent. Therefore, it is recommended to never hand over the car until payment has been received and confirmed by the bank. If the buyer insists on paying by check, the recommended procedure would be to wait for the check to clear before handing over the car. In all circumstances, we recommend checking the validity of any payment receipt at the bank.
overestimation
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A frequent scam in the used car market is the so-called “overvaluation”. In this situation, the buyer offers an immediate payment above the asking price, ostensibly to secure the vehicle for sale, and then requests a refund for the difference. Once the refund is obtained, the buyer disappears and the initial payment turns out to be a fake. From this scenario we can deduce the importance of maintaining a prudent attitude when faced with excessive payment offers. It is advisable to only accept the exact amount agreed upon for the sale of the vehicle. Furthermore, as anticipated, it is always recommended to verify the authenticity of each payment at the banking institution before making any refunds.
Complaints
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It is also possible that some buyers may make unfounded complaints post-purchase, attempting to return the vehicle or demanding refunds that are not due. To prevent such inconveniences, it is essential to carefully document the condition of the vehicle prior to sale, including filing photographs of any damage and retaining all documents related to the transaction. It is advisable to include a precise clause in the sales contract stipulating the “seen and liked” sales conditions, in order to minimize the risk of future requests for returns or compensation.
Documents and place of sale
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Before finalizing the sale of the used car with the change of ownership, it is advisable to request a copy of the driving license or document from the interested customer and make sure that the information corresponds with the details provided during the negotiations. Furthermore, it is a good idea to immediately complete the transfer of ownership together with the payment at a car processing agency or the Motorist’s Telematic Help Desk. Furthermore, to ensure safety when meeting a potential buyer, it is recommended to opt for public places, such as car parks or well-lit areas, preferably with video surveillance, such as petrol stations. It is also a good idea to accompany the potential buyer during the test drive, always maintaining control of the situation. After the test drive, the vehicle and keys should never be left in the hands of the buyer.
identity and financial theft
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Before closing a sale, it is essential to ensure the protection of personal information. This includes deleting the user profile before proceeding with the sale of a connected used car and removing all documents from the car that are not needed by the new owner. It is important to remove any non-service tags, which may contain sensitive data such as addresses or financial information. While these may seem like routine actions, they are actually preventative measures to prevent attempts to misuse personal data. Unverifiable checks should be rejected when the banking institution is closed, such as on weekends. It is crucial to manage the financial constraint of the vehicle, an aspect that is often overlooked. In the event that the buyer is using financing for the purchase, it is essential to communicate with the finance company involved to verify the financing transfer procedure or its complete repayment, thus avoiding surprises or further financial responsibilities after the sale.
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