How to avoid scams when selling your car online
Most scams aimed at car sellers follow a few patterns: a buyer who can't see the car but sends a cheque for more than your price and asks for the difference back; a fake payment notification; a request to buy a history report from a site they choose; or a request for a verification code sent to your phone. The safe rule: meet in person, confirm the money is real before you sign anything, never send money back, and never share codes.
The common scams
| Scam | How it works | What to do |
|---|---|---|
| Overpayment cheque | The "buyer" can't see the car, sends a cheque for more than your price, and asks you to send back the difference. The cheque is fake, but the money can show in your account before the bank finds out. | Never accept more than your price, and never send money back. |
| Fake payment notice | A fake app or email "payment" arrives, or they claim they paid twice and want a refund. | Check your actual account, not a screenshot or email. |
| History-report link | A "buyer" asks you to buy a report from a specific website before they'll visit, then disappears. | Decline. A real buyer can run a report themselves with the VIN. |
| Verification code | They ask for a code sent to your phone, "to prove you're real". | Never share codes. They can be used to take over your accounts. |
| Pickup agent / shipper | Someone else will "collect" the car and you're asked to pay the shipper from the cheque. | Sell only to a buyer you meet, who pays before taking the car. |
Why the cheque scam works
The FTC explains that banks must make deposited funds available quickly, usually within about two days, but it can take weeks to discover a cheque is fake. When they do, the bank takes the money back out of your account. If you've sent the "extra" back, or handed over the car, that loss is yours.
Know what buyers will see
Serious buyers will run your VIN. Check your own car's open recalls for free first, so you can get them fixed (recall repairs are free at the dealer) or mention them up front.
The history-report request
The FTC has warned about "buyers" who ask sellers to buy a vehicle history report from a specific website, sometimes one that looks related to the VIN, then never get in touch again. It can be a way to collect your card number or personal details. We earn a commission on history reports, so we'll be clear: if you want to give buyers a report on your car, choose a well-known provider yourself and pay on that provider's own site, never through a link a stranger sends. A genuine buyer can run their own report with the VIN in your ad.
How to get paid safely
- Cash: count it at your bank, where the teller can check the notes.
- Bank draft or certified cheque: call the issuing bank yourself, using a number you look up independently (not one printed on the cheque), to confirm it's genuine, or go to the bank with the buyer.
- Electronic transfer: wait until the money is actually in your account, not just a notification.
- Don't sign over the ownership or title, or hand over keys, until the payment is confirmed.
Safety at viewings and test drives
- Meet in daylight, with someone else around.
- Check the buyer's driver's licence before a test drive, and ride along.
- Keep the ownership papers and spare keys out of the car during viewings.
If something feels wrong
Stop and report it. In the US, report scams to the FTC at ReportFraud.ftc.gov. In Canada, report to the Canadian Anti-Fraud Centre (1-888-495-8501) and your local police. Report the account to the site where you listed the car, too.
Questions
Is it safe to accept a cheque when selling a car?
Only if you confirm it with the issuing bank yourself, ideally by going to the bank. Never accept a cheque for more than your price, and never send money back.
A buyer wants me to get a history report from a specific site. Is that a scam?
It's a pattern the FTC has warned about. A real buyer can run their own report with the VIN. If you want to offer one, pick the provider yourself.
Why does a buyer want a verification code?
To use it to access your accounts. Never share a code sent to your phone or email with anyone.
Sources
- Fake check scam targets online car sellers (FTC, 2025)
- Selling stuff online? Here's how to avoid a scam (FTC)
- Steering clear of vehicle history report scams (FTC)
- Put the brakes on phony online car sales (FTC)
- Report fraud: Canadian Anti-Fraud Centre, 1-888-495-8501
General information, not legal advice. Rules change, so check the official source before you rely on a detail.