Scammers target both buyers and sellers of cars, often with the same few tricks. Knowing the warning signs, and a few simple rules about payment and meeting in person, protects you whether you are buying or selling.
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Key takeaways
- Never pay with gift cards or wire transfers, and never send money back to someone who says they overpaid by check.
- Insist on seeing the vehicle in person and having an independent mechanic inspect it.
- Check that a dealer website is genuine: search the name with words like "scam" or "complaint" and confirm details by phone.
- If a deal feels rushed or too good to be true, stop. Report scams at ReportFraud.ftc.gov.
In this guide
- What are the most common car scams?
- How does the fake check or overpayment scam work?
- How can I tell if a listing or a dealer website is fake?
- How should I pay or get paid safely?
- What about shipping, deposits and "holding" fees?
- Which pressure tactics should make me stop?
- What should I do if I think I have been scammed?
What are the most common car scams?
Short answer The most common car scams are fake checks and overpayment, listings priced far below the market, cloned dealer websites, demands for gift cards or wire transfers, and "shipping" fees asked for after you agree a price. Scammers also rush you and avoid meeting in person.
The most common scams are fake checks and overpayment, fake listings priced far below the market, cloned dealer websites, requests to pay by gift card or wire transfer, and extra "shipping" or "transport" fees demanded after you have agreed a price.
Scammers also pressure you to decide quickly, and they avoid meeting in person or talking by phone.
How does the fake check or overpayment scam work?
Short answer A "buyer" sends a check worth more than the price and asks you to refund the difference. The check can look cleared for weeks before the bank discovers it is fake and takes the money back. Never send money back to someone who says they overpaid by check.
A "buyer" sends a check for more than the price, often saying they are out of town or must pay a shipper, and asks you to send back the difference. The check may appear to clear at first, but the bank can take weeks to find out it is fake and then takes the money back, so whatever you returned is lost.
The rule is simple: never send money back to someone who says they overpaid by check.
How can I tell if a listing or a dealer website is fake?
Short answer Be wary of prices far below similar vehicles, stock photos, and sellers who will not talk by phone or meet. Search the dealer's name with words like scam or complaint, phone using a number you found yourself, and check that the VIN matches the photos and papers.
Be suspicious of prices far below similar vehicles, stock photos, sellers who will not talk by phone or meet, and stories about being abroad or in the military. Scammers can also clone a real dealer's website, copying its logo, listings and photos. To check:
- Search the dealer's name with words like "scam", "review" or "complaint".
- Phone the dealer on a number you find independently, not only the one on the site.
- Check that the address exists and that the VIN in the listing matches the photos and the papers.
- Be careful with glowing reviews that all look alike, and verify in person where you can.
How should I pay or get paid safely?
Short answer Never pay with gift cards, prepaid cards or wire transfers to a stranger. Meet in person and use a method the bank can verify, such as a cashier's check confirmed with the issuing bank. Sellers should accept cash counted at a bank or confirmed cleared funds, or use escrow.
Never pay with gift cards, prepaid cards or wire transfers to someone you do not know: these payments are very hard to get back. When buying, meet in person, inspect the car and pay with a method the bank can verify, such as a cashier's check confirmed with the issuing bank, or a transfer completed at the bank.
When selling, accept cash you count at a bank or a payment you have confirmed as cleared, and consider an escrow or online payment service for sales at a distance.
What about shipping, deposits and "holding" fees?
Short answer Be careful if a seller asks for a deposit to hold a car you have not seen, or insists you pay for shipping through their chosen company. A genuine sale can be completed with an independent inspection near the car and a payment you can verify.
Be careful when a seller asks for a deposit to "hold" a car you have not seen, or says the price is only valid if you pay for shipping through a company they recommend. A genuine sale can be completed with an independent inspection near the car and a payment you can verify.
Our guide on shipping a car explains how to check a transport company before you pay anything.
Which pressure tactics should make me stop?
Short answer Stop if a seller rushes you, says another buyer is about to pay, refuses an inspection, avoids a phone call or meeting, or offers a big discount for paying at once. A genuine seller will wait for an inspection and a verified payment.
Warning signs include urgency (another buyer is "about to pay"), refusing to let you inspect the car, asking you to move the conversation to text messages or another app, a story that explains why you cannot meet, and a price that drops sharply if you pay at once.
Slow down: a genuine seller will wait for an inspection, and a genuine buyer will wait for the money to clear.
What should I do if I think I have been scammed?
Short answer Stop sending money, contact your bank immediately, keep screenshots and messages, and report it to the FTC at ReportFraud.ftc.gov and to your state attorney general. You can also report a suspicious listing or user on Motor Mania Club to info@motormaniaclub.com.
Stop sending money, contact your bank straight away to try to stop or recall payments, and keep screenshots and messages. Report it to the FTC at ReportFraud.ftc.gov and tell your state attorney general.
You can also report a suspicious listing or user on Motor Mania Club by email to info@motormaniaclub.com. For the full buying checklist, read our guide on buying a used car safely.
Sources and further reading
- FTC: Fake check scam targets online car sellers
- FTC: What to know when buying a used car online
- ReportFraud.ftc.gov: report fraud to the FTC
How this guide was prepared
This guide is written from official and industry sources, which are listed above, and checked against how Motor Mania Club works. We aim to review our guides every few months and change the date when something is updated.
This guide gives general information and is not legal, financial or mechanical advice. Rules differ by state, so check your state agency for the exact requirements.
About the author
Elie Haddad, Founder, Smart Net 360 and Motor Mania Club. Elie Haddad is the founder of Smart Net 360 and of Motor Mania Club, the US automotive marketplace and directory that connects dealers, parts suppliers, garages and car enthusiasts. 15 years in business management and a car enthusiast.
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