Appendix 2. Private Party Sales

---

Keep in mind that you know nothing about the seller and little about the car or the true reasons why it's for sale. Stay safe when meeting the seller and follow these tips: 

• Do the vehicle research and prepare your test drive plan in advance, according to a Test Drive checklist. 
•  Consider using a buying and selling service such as Caramel, Escrow.com, or PrivateAuto to handle paperwork, secure payment, title transfer and registration, and verification. They also offer options to add vehicle protection, digital inspection, finance, insurance, and transport. 
• Schedule the inspection, test drive and money exchange during daylight hours whenever possible. Ask what the acceptable forms of payment are, and be prepared to pay if an agreement can be reached. 
• Meet in a public place, such as a police station, bank, or grocery store parking lot, and bring a friend with you.
• Ask for identification and the title and/or registration
  • Compare the seller's driver's license with the vehicle registration and/or title. 
  • Check that the title and registration name matches the seller's name.
  • Check whether it is a salvage or flood title, which will be noted if it is.
  • Take a photo of their driver’s license and send it to a friend as a precaution.
•  If you plan to test drive the car
  • Use your Test Drive checklist to plan your drive. 
  • Tell the seller what you plan to test and how long it might take.
  • Only take a test drive if all the research and inspections up to this point indicate that you will make an offer if the test drive is successful.
• If the test drive was not successful, list the problems you discovered, research what it would cost to correct them, and subtract some of all of those costs from the amount you had already decided you would pay if everything went well.
• If the test drive was successful and the car doesn't need any repairs or replacement parts, offer the amount you were willing to pay.
  

Beware of common seller scams: 

• Deposit/Advance Payment Scams
  • Description: The scammer asks for a deposit or advance payment to "hold" the car, often claiming they have other interested buyers. They disappear after receiving the payment. 
  • Red flags: Pressure to pay quickly, requests for untraceable payments (gift cards, money transfers), seller not willing to meet in person.
• Fake Payment Scams
  • Description: The scammer sends you a fake payment confirmation (e.g., a forged check) for more than the agreed price, then asks you to refund the "difference." 
  • Red flags: Overpayment, strange payment methods, pressure to refund quickly.
• Phishing Scams
  • The scammer sends you a link that looks like a legitimate payment platform or login page. Once you enter your information, they steal it.
  • Red flags: Unsolicited links, requests for personal information, urgency to click the link.
• Fake Car Scams
  • The scammer uses stolen photos and descriptions of real cars to list nonexistent vehicles. They may ask for upfront payments before disappearing.
  • Red flags: Unrealistic prices, blurry or generic photos, seller refuses video calls, location doesn't match description.
• Other Red Flags
  • Vague or incomplete descriptions.
  • If on Facebook Marketplace, seller has no history.
  • Seller avoids answering questions about the car's condition.
  • Seller pressures you to close the deal quickly. 
  • Deals that seem too good to be true.
• Odometer Tampering: This is one of the most common scams, and it involves rolling back the odometer on a car to make it appear to have fewer miles than it actually does. A car with lower mileage will typically sell for more money, so this scam can be very costly for the buyer. 
• Title Jumping: The illegal practice of buying and reselling used cars without having titled it in the sellers own name. Also known as floating a title.
• Title Washing: This scam involves taking a car with a salvage title or a branded title (such as a flood car) and cleaning up the title so that it appears to be clean. A clean title will make the car more valuable, so this scam can also be very costly for the buyer. 
• Fake Cashier's Checks or Money Orders: Scammers may try to pay for a car with a fake cashier's check or money order. These checks or money orders will look real, but they will not be able to be cashed.
• Bait and Switch: This scam involves advertising a car for sale at a very low price, but then when the buyer shows up to see the car, the seller tries to switch them to a different, more expensive car.
• Curbstoning: The illegal practice of buying and reselling used cars without a dealer's license, often pretending to be a private seller. Imagine someone selling used cars out of their driveway or parked along the curb—hence the name "curbstoning." 
  • They buy used cars, often at auctions or from distressed sellers, at low prices. 
  • They make quick repairs or conceal existing problems, potentially through odometer tampering or misrepresenting the car's history. 
  • They make quick repairs or conceal existing problems, potentially through odometer tampering or misrepresenting the car's history.
  • They pose as private sellers and advertise the cars online or in public spaces, offering seemingly attractive deals.
  • They operate without the necessary licenses and permits, evading taxes and regulations.
  • Lack of dealer oversight increases the risk of buyers purchasing cars with hidden problems or fraudulent titles. 
  • No access to consumer protection laws and warranties that licensed dealerships offer. 
  • Ask for the seller's name and address (curbstoners avoid providing this).
  • Check the car's history report, like CARFAX or AutoCheck, for any red flags.