Sell It Yourself Car Seller's Guide

Learn How to Close Your Car Sale

• Dealing With Fraudulent Leads
• Meeting a Prospective Buyer for a Test Drive
• Securing Safe Payment
• Transferring Ownership
• Turning Over Your Car to the Buyer

Stop Fraud: See the latest scams in our SAFE blog.

Along with the number of consumers conducting transactions online, internet fraud has increased during the past several years. Big-ticket transactions are a primary target, but that shouldn't discourage you from selling your car on your own. Go for it, but be cautious and educate yourself about potential scams.

Be on the lookout for the following ways you can be lured into a scam:

Cashier's Check Scams

In a typical scenario, a buyer — who usually inquiries from overseas — arranges to pay for the car with a cashier's check or certified check in an amount that's more than the vehicle's purchase price. The buyer justifies this by saying a previous sale fell through or the extra money is needed to pay for shipping expenses or customs fees.

The buyer then asks the seller to wire the difference either to him or to the shipping company to cover expenses. Or a buyer will send a cashier's check as a down payment, then decide to back out of the deal and ask for the money back.

When asked to wire money, just say no. It's never a good idea to wire money to someone you don't know because it's an untraceable transaction. Stop negotiating with anyone who proposes this kind of bargain.

Phony Escrow Services

Escrow services serve as middlemen between buyers and sellers. They collect payments from buyers, wait until the buyers collect and approve the purchases, and then send the money to the sellers.

The internet is littered with bogus escrow sites, so make sure you use a licensed, reputable service. Cars.com recommends Escrow.com.

Never blindly accept an escrow service proposed by a buyer. If a buyer insists on using a service other than Escrow.com, find a new buyer.

Below is an actual fraud email sent to a cars.com seller:

View more fraud emails received by cars.com.

Few people would buy a car from a dealer without test-driving it first, and the same is true when dealing with a private-party seller. It may seem odd to hand your keys to a stranger, but the process should run smoothly if you follow these tips:

• It's best to meet potential buyers somewhere other than your home. When possible, bring along a friend for peace of mind — but in any case, make sure family or friends know of your plans.
• Cars.com strongly recommends that you accompany prospective buyers on the test drive. This gives you more selling time, and it spares you the distress of watching a stranger drive away in your car. When riding along, point out all the features you love about your car, including things you didn't mention in your ad. You've got a captive audience, so make the most of your time.
• If the buyer makes a special request to go it alone — and you feel comfortable with that — make a copy of his or her driver's license (assuming you don't have quick access to a copy machine, simply jot down their name, address and driver's license number). Set a time limit on the test drive, and exchange cell phone numbers as a backup strategy. Also, confirm that the driver's license information meshes with what you were told initially.
• Pre-plan a general route that allows the buyer to experience a variety of driving situations during the test drive. Give them the opportunity to drive on the highway and in local traffic, as well as maneuver the vehicle in a parking lot.
• Liability shouldn't be an issue. Many insurance policies cover other people who drive your car so long as they're doing so with your permission and have a valid driver's license. Verify your policy's details; if it doesn't offer this protection, ask to see proof of the shopper's insurance. Make sure the driver has full coverage, which includes collision, liability and comprehensive.

Whether you're dealing with a buyer in person, via email or over the telephone, always be careful when accepting payment. Scam artists are deceitful and good at what they do, so remember these steps to make yourself less vulnerable.

• Never wire money to a potential buyer under any circumstances. If a buyer pays via a check or money order, accept only the exact amount of the selling price of the vehicle.
• Confirm with the issuing bank that the check is valid. Look up contact information for the bank on your own, as a forged check likely will include a phony bank address and phone number.
• When possible, go to the bank with the buyer to verify the check's authenticity. In addition, it's a good idea to request a cashier's check drawn from a local branch.
• Stick to your timeline and don't rush the transaction. If the bank is closed when the buyer wants to pay you, then hold off until you can verify the check's validity. If possible, wait until the check clears the bank before handing over ownership of the vehicle. How long that takes depends on your bank, but it should be less than a week.
• If the buyer chooses to pay by money order, follow the safe-payment guidelines for accepting checks. Verify the name and amount with the issuing bank, and request a money order from a local bank whenever possible.
• If those methods leave you feeling squeamish, there's always cold, hard cash. Your best bet, however, may be Escrow.com. It's legitimate and offers equal protection for buyers and sellers. If fraud fear keeps you awake at night, Escrow.com is the way to go.

Transferring ownership to the buyer is easy, but details vary by state. We list a few guidelines regarding this part of the transaction, but check with your local Department of Motor Vehicles for location-specific details:

• Before potential buyers take their first look at your car, make sure you have the title in your possession — provided the car is paid off. You'll need to sign this over to the new owner. If you don't know where your title is at or how to obtain one, see Prepping Your Car for Sale.
• Ownership-transfer legalities vary from state to state, so get the details from your local DMV.
• To avoid future liability, notify the DMV that you sold your car. States have different mechanisms for gathering this information — some require you to file a notice of sale after you've signed over the title to the new owner. Make sure you research your local requirements completely and fulfill every condition.
• It's a good idea to fill out a bill of sale (requires free Adobe Acrobat Reader), which is included in cars.com's Selling Tools, even though it doesn't legally transfer ownership. Some states make this a requirement. A bill of sale lists the car's vehicle identification number, a description of the car, the date of sale, the purchase price, and the names and signatures of both parties in the transaction.
• Make copies of all paperwork.

You decided to post an ad and you found a buyer — now it's time to say goodbye to your car. Here are a few last-minute reminders:

• Don't jump the gun; make sure the sale is secure. If you accepted payment via a cashier's check, follow the steps in the Safe Payment section to ensure it's valid before signing over the title. If you used an escrow service, wait until it tells you that payment has officially been received.
• If you're dealing with an out-of-town buyer, arrange for that person to pick up the vehicle. You also could consider employing a professional delivery service. Delivery services transport vehicles on large hauling trucks. Prices vary depending on the length of the transport and the vehicle's weight. The cost usually starts at about $500. Work out the cost and payment issues with the buyer first. Cars.com recommends Dependable Auto Shippers.
• The license plates stay with the seller, not the car, in most states. If the plates remain with the original owner, remove them so you don't retain a legal tie to the car. If the plates stay with the car, you need to fill out the proper paperwork at the Department of Motor Vehicles so the plates transfer to the new owner.
• Call your insurance company and remove the vehicle from your policy.
• As long as you were forthright with information about your car in the selling process, you shouldn't be liable for anything once the sale is complete. In most states, the law assumes that private-party sales carry "as is" status. Still, it doesn't hurt to get that understanding in writing. Have both parties sign off before the transaction is complete. Cars.com's Bill of Sale includes this language.