Cars are easy and profitable to sell, even if you start with an online ad on KBB.com. However, there are a few important things to consider and these simple steps will help protect yourself and facilitate the process.
How To Protect Yourself When Selling A Car
The following information is not intended as a complete list of all possible aspects of the sale, as each sale is different. Please also check the laws and regulations in your state and contact your local law enforcement agency for more information.
If a car is listed on KBB.com, an email, SMS or phone call from a prospective buyer will arrive within 24 hours of listing.
This conversation allows you to talk to the potential buyer and ask him how serious he is about the car and whether he has any financing. Invite the buyer to ask questions, as this will help you to assess their needs. Beware of anyone who offers to buy your car unseen and recommend talking to the most serious buyers on the phone or during a test drive.
The best way to sell is to contact someone close to you so that you can meet them in person, such as a friend, family member or business partner.
Banks may want to see the vehicle when the buyer receives financing, and it is recommended that potential buyers be told that they do not accept government checks.
Cautionary Steps When Selling A Car
For your own protection, you should ensure that the insurance cover is extended to other drivers and you must check the potential buyer’s driving licence before handing over the keys. If the caller appears legitimate and ready to buy, or if you want to take a test drive, choose a location that should be a safe central meeting place. Meet the prospective buyer in a busy area where you can see people, such as a public park or parking lot.
Most buyers don’t expect a long trial period, so if the buyer wants more time, they should ask him. If you want to test a short distance, you should stick to a populated area, such as a public park or parking lot.
Always plan ahead and ask friends or family members to join you on the drive, and check your driving license and accompany the driver on the test drive if he offers you any kind of safety in exchange for driving. If the person is serious about buying the car, you may want to negotiate the price, but discuss payment methods in advance. Once you agree on a price and the transaction is complete, you will meet with your bank or credit union to complete it.
Deny the would-be buyer’s ability to drive you to the location and refuse any information about your location or other details about the car, such as the driver’s license plate or license plate.
Instead, tell the buyer to take care of it themselves and put down a deposit or apply so you can raise the money and take out a loan. Keep the title of the car unsigned and out of sight until you have received the full payment, but keep the papers ready. When the test drive ends at your home, complete the transaction before letting your buyer in. Call the buyers when they are ready to complete the sale and do so as soon as possible after you have been let into their homes.
Make sure the payment method is legitimate: To detect fraudulent checks, the Federal Deposit Insurance Corporation has set up a website called Fake Checks to detect them.
Beware checks issued after the agreed purchase price: Some buyers request a cash refund, but the Trustee Service will maintain the buyer’s payment until the seller delivers the purchased item.
Fraudsters often set up fake escrow services: third-party services can protect both parties from fraud, but are not always available to buyers.
They claim to link you to a well-known company to create a sense of security, but in reality they are nothing more than false escrow services.
Avoid any trust that claims to be held by a trustee and avoid any payment for trust assets that implies affiliation or partnership with KBB.com. TRUSTe does not operate or cooperate with any of these escrow services.
Check the legitimacy of a trust service by checking with your state regulator or using a search engine before opening the website in your browser. Do not click on links provided by the seller and do not use search engines to open websites without opening them. If the other party insists on using trusted services that you are not sure of, reject the transaction.
Select the contact number on your state regulator’s website or in search engine results by the name and phone number of the seller.
If a trust website or email implies a connection to Kelley Blue Book by displaying a logo or other means, report it to law enforcement. If you sell to another person, it is your responsibility to ensure that the transfer is made properly. The dealer will do all the paperwork, but it is important to keep a paper trail when selling the car.
A little footwork in front of you can eliminate all the difficulties on the road and can cause the seller a lot of headaches.
Each state has different rules for the proper transfer of property, but most require both the seller and the buyer to ensure that the transfer is legal. The seller must sign the existing title before handing it over to the buyer, and you should also make a copy of the signed title on both sides for your record.
Providing accurate odometer reading is crucial when you sell, and by logging the title, the odometer will provide you with a clear indication that the car is no longer legally stolen.
Most states recommend that both buyers and sellers complete a form of exemption from purchase obligations to provide proof of transfer and protect the seller. Send your signed liability release to your state DMV and submit a sample invoice with information about your liability release. The buyer could have an accident within two miles of the sale and you are responsible for it. Not for nothing, but it is still a good idea to send it to the DMV as soon as possible.
In many states, you have to hand in your license plate at the DMV and receive a receipt that revokes the registration in the name of the vehicle. This is to ensure that you are not held responsible for everything that happens to your vehicle after the sale.
If you originally bought the car from a dealer, you may have applied for a loan and left a contract to complete it. This is a perfect tool for identity theft as it can include your Social Security number and previous address. Before you provide the Buyer with any service documents, your personal information should be blocked from any other information you do not wish to disclose.
Check your state’s rules for transferring the title and you can perform these three steps at your local AAA or DMV location. Most states require the seller to present 90% of the transfer of ownership to the buyer within 90 days of the purchase of a new car or within 30 days of the sale.
Some states also recommend that sellers take the opportunity to report to the Tax Office for sales estimates, which provides further protection for potential owners who do not properly name the vehicle. Consider that the overwhelming majority of private car sales are smooth, but in some transactions it is important to be intelligent and take the right preventive measures. Bring in more money than the seller is willing to exchange and make sure you are available at the time of sale.
Call the Fraud Prevention Team at 1-877-210-5209 or have questions or self-report to the National Crime Agency’s (NCA) Fraud Prevention Team at (1) 877-210-5209.