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How to protect yourself from scams when selling your used car in Canada

How to protect yourself from scams when selling your used car in Canada

Today, we are going to review some of the scams you need to be aware of when trying to sell your used car in Canada.

We are not trying to put a damper on your mood, but as the adage goes, “a little prevention can go a long way.”

The opportunity

The first thing we need to understand, scammers go where the opportunities are; right now, the used car market is on fire; demand is far outpacing supply, and everyone is trying to capitalize on the opportunity.

What these scammers do is try to gain possession of your car so they can ship it to developing countries in Africa who pay a premium for used cars from Canada, or the scammers take money from other unsuspecting buyers using your car as “bait.”

Using your car as bait approach

The scammers will look at your car listing and try to copy it, changing only the contact number and email on the listing.

What the scammer will do is post advertisements using your vehicle. When someone contacts them about the car, the scammer says they have multiple offers.

Still, they will hold it for the buyer if the buyer sends them a refundable deposit sight unseen.

This may sound insane, but it happens, especially with the current trends in the car market; people are buying new cars without actually test driving them.

When the scammer receives the deposit, they disappear, and when the buyer is unable to reach the scammer, they will find you.

Both you and the buyer who got ripped off will only realize what has happened long after the money is gone.

The direct approach

We covered how scammers can use your vehicle as bait.

Another more direct approach is a scammer will contact you about the car; after some back and forth discussion, the scammer says they want to buy the car but can’t go there in person because they “insert excuse” but will send you a payment via courier.

You give them your address, and a courier does show up with a cheque payable for the full asking price.

You figure this is a done deal, deposit the cheque and message the buyer. The buyer sends over an associate to pick up the car, and life goes on, at least until you check your bank account a few weeks later and see the cheque bounced.

These scammers don’t need to have the paperwork for the used car because it is being shipped overseas to countries where paperwork is not a major concern.

You are not only out of the money deposited into the bank account, but you also lost your car!

The safest way to sell your used car

Instead of putting yourself through the ordeal of trying to sell a used car on your own. You should bring it down to a local car dealership and sell your used car to them. The dealership is obviously a legitimate company, and they will pay you in cash, so there is no worry about not getting paid.

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Categories: Sell Your Car