Automotive

How to protect yourself when selling a used car ($25k+)

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  • Jul 14th, 2020 10:26 pm
[OP]
Deal Addict
Sep 7, 2018
1671 posts
2035 upvotes

How to protect yourself when selling a used car ($25k+)

What are the steps required to protect yourself to the fullest selling a used car over $25k+ ??

Haven't sold a used car since early 2000s but to maximize value I would go this route as trade in value is 40% less than market value. Not sure what the latest scams are...
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8 replies
Deal Expert
User avatar
Sep 1, 2005
18008 posts
12716 upvotes
Markham
I've never sold a used car myself but some suggestions.

Sell on RFD (or other forum sites you frequent perhaps) where we're a community and have some "identity" as long as the person you're selling to has been here for some time, has some rep etc.
Or
Send an email/use your network (family/friends/co-workers/associates etc) to sell instead and you'll have a lot less headaches. Provide as much info as possible and pics from all angles, insides, trunk, features/options etc.

Selling for slightly less is likely worth the headache of dealing with strangers IMO.

You need to know what trade in value is - it helps.
We're all bozos on the bus until we find a way to express ourselves...

Failure is always an option...just not the preferred one!
Deal Addict
Jul 21, 2009
1489 posts
1025 upvotes
Toronto
Once you agree on price set up a day to do the transaction. The last car I sold I picked up the buyer at their house and had them drop me home after we transferred ownership and they got the plates from service Ontario.

- Meet at bank and deposit bank draft
- Meet at Service Ontario and transfer ownership. Done
[OP]
Deal Addict
Sep 7, 2018
1671 posts
2035 upvotes
submarine wrote: Once you agree on price set up a day to do the transaction. The last car I sold I picked up the buyer at their house and had them drop me home after we transferred ownership and they got the plates from service Ontario.

- Meet at bank and deposit bank draft
- Meet at Service Ontario and transfer ownership. Done
Is there any way the bank draft could be fraudulent? Is that the only recommended form of payment?
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Deal Addict
Jul 30, 2015
3974 posts
3191 upvotes
Toronto, ON
superscoots wrote: Is there any way the bank draft could be fraudulent? Is that the only recommended form of payment?
I have run into situations where the bank verified the bank draft by calling the manager of the bank that issued it to confirm it on phone. Has happened to me twice. Even a draft took almost as long as a check. Knowing that, I can assume fake drafts are a thing.
Deal Addict
Jul 17, 2003
1347 posts
230 upvotes
Toronto
superscoots wrote: Is there any way the bank draft could be fraudulent? Is that the only recommended form of payment?
You never know these days. Anything can be faked.

https://www.scam-detector.com/article/b ... 20got%20it.
"Do not wait outside the bank or teller's office/desk. It is known that scammers set up meetings with bank reps for fake reasons, just incase the seller of the car wants to come to the bank, but wait outside the office. The scammer has the fake draft on them right from the start and take it out before leaving the rep's office, claiming they just got it."

even the plastic bills
https://www.cbc.ca/news/canada/ottawa/d ... -1.5470570
Sr. Member
User avatar
Apr 26, 2010
893 posts
153 upvotes
Richmond Hill
Not to hijack the thread but can we mention the best strategy for buying used too? I'm looking to purchase my first used vehicle.
One thing I found online is to take the car for a pre inspection.
Deal Addict
Aug 28, 2010
1281 posts
332 upvotes
Toronto
I was blown away how a certified bank draft is still not "guaranteed" and is not usable right away (still holding)
Teller told me unless it was generated by the same bank it has a holding period. Cash is king she said........ so strange how there is no unified hub to verify if a bank did issue it or not,
[OP]
Deal Addict
Sep 7, 2018
1671 posts
2035 upvotes
Crazy there is no sure fire way -- I know someone in a dealership and they get brand new cars fraudulently purchased - buyer has the credentials, the drafts, credit, everything checks out -- then days later the bank contacts them saying the money did not go through - but the fraudster is long gone with the vehicle - usually on a shipping container overseas.
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