Buying a car is stressful enough without someone trying to trick you. Unfortunately, scams show up in every corner of the process: online listings, private sellers, and even “helpful” middlemen who claim they can handle paperwork for you.
We recently sold a car to Carvana because I didn’t want to risk getting scammed as a seller. But what’s worse is when the person trying to buy a car gets scammed, because they’re often stretching their budget, relying on that car for work or family, and they can lose thousands in minutes.
Here are the most common car buying scams and how to avoid them.
1) The too-good-to-be-true listing. A vehicle is advertised far below market price with great photos and a story that pressures you to act fast (“I’m moving,” “military deployment,” “selling for a relative”). The scammer usually asks for a deposit to “hold” the car, then disappears. Never send money before you see the car in person and verify the seller has the right to sell it.
2) Fake escrow, fake shipping, fake protection. Scammers love to promise an escrow service and send a link to a lookalike website. Or they claim they can deliver the car after you pay a “refundable transport fee.” Legit escrow services exist, but you should find them yourself, not through a link a stranger sends. If the seller won’t allow an in-person inspection or insists on shipping only, walk away.
3) VIN and title tricks. Some sellers “wash” a title to hide salvage or flood history, or they provide a VIN that doesn’t match the actual car. Always check the VIN in multiple places: the dashboard, driver-side door jamb, and the title paperwork. If anything is inconsistent, stop the deal. Also be cautious of “duplicate title” excuses that delay documentation.
4) Payment pressure and unusual methods. Wire transfers, crypto, gift cards, and payment apps without buyer protection are common scam tools. A legitimate private sale can be paid safely, but you should choose the method, not the person rushing you. A good approach is meeting at your bank so a cashier’s check can be verified on the spot.
5) Dealer bait-and-switch and financing surprises. Some shady dealers advertise a low price, then pile on mandatory fees, surprise add-ons, or switch loan terms at signing. Ask for the out-the-door price in writing, read every line, and be willing to leave.
If you remember one thing: slow down. Scammers win when you feel rushed, embarrassed, or afraid of missing out. A real seller will let you verify the details. A scammer will try to hurry you past them.