How to avoid a scam when selling a car on social media

Selling a car via social media, such as Facebook Marketplace, can be an effective way to spread the word that you have a vehicle on offer. An advertisement made in Marketplace, for example, can be shared to local community groups or even specialised car enthusiast groups. But it’s also a magnet for scammers.  

I’ve sold multiple vehicles through Marketplace and in the past found it easy to spot a scammer and give them the flick by just ignoring them. But this time around, it was different. Within minutes of listing a modest red hatchback, a flurry of messages landed in the inbox with varying degrees of veiled deception. Most seemed convincingly real – until a few predictable red flags popped up. 

Here’s how to spot a car-buying scam, why they happen, and how to avoid them. 

Common online marketplace scams

There’s a number of different types of car-buying scams and they seem to come in phases. Who knows, maybe there’s a guidebook out there on the internet for aspiring criminals (yes, scamming is a crime!)

Why do people try to scam vehicle sales? 

Quite simply: 

• To falsely take money from you 
• To gain your personal information for identity theft
• To use the vehicle for a robbery or other crime

Scammers might try to do this by:

• Telling you they are working away and need a car quickly, and that they have to use a third-party payment via a money transfer purchase such as Western Union. They then try to convince you that to “activate” the transfer service, you must first transfer them money.
• Luring you into a false sense of a sure sale, ask for a vehicle report by an unfamiliar name, then send you a link to a fake vehicle report site (don’t click on it!);
• Turning up for a test drive then handing you a fake or stolen licence. 

Common traits of vehicle purchase scams 

Scammers will typically use a variety of methods to try and trick you into giving them money, or personal information, or the car itself. Scammers might ask you seemingly legitimate questions before leading you into the scam. Knowing the common traits of a scam will help protect you from falling prey to scams. 

Common red flags the enquirer is a scammer: 

• They’re happy to buy the vehicle without looking at it
• They want to switch the conversation to another channel quickly
• They provide an email address that does not match their name
• They provide an unsolicited and detailed story about why they need the car
• They say they will have the vehicle picked up by a courier or someone else
• They dictate the payment method, typically early on 

Checking out the buyer’s profile can help but is not always clear cut; if they don’t live near you or recently joined the social media platform, stay on alert. That said, even though a profile was made years ago and they live near you, it is possible that someone’s profile has been hacked. 

What to do if you get scammed 

• If you lose money to a scammer, call your bank straight away. However, if you’ve willingly handed money over to them, it is unlikely you’ll be able to recover it. 
• If you hand over personal information online, cancel any cards you may have used (e.g. credit cards or Medicare card) and order cards with new numbers from the issuer. If you’ve used a common password, immediately change passwords on your accounts (general tip, never use the same password on multiple accounts).
• If they take your car for a test drive and don’t come back within an agreed time – call the police immediately!  

Some final tips 

• Licence check: If the potential buyer arranges a test drive, ask them to bring their physical driving licence on the day. Snap a photo of both sides and note down their details (name, licence number, address) to cover you for any issues during the test drive or for after the sale. 
• Digital licence check: If they don’t have their physical licence, ensure they open their state’s licence app (such as Service NSW) – scammers might try to show you a forged licence that is actually a photo in their media library. 
• Get their phone number: Make sure you have a way of contacting them. Call them before they go for a test drive to ensure it is their phone number. 
• Put an airtag in the boot: Putting a tracker in your car (if you can’t already track the car on a carmaker app) is also a good idea if you decide to let someone test drive the vehicle without you.
• No haggling is a red flag: If someone is prepared to buy your vehicle quickly without negotiating the price at all, be on alert. Of course, you are well within your rights not to budge on price but most genuine buyers will try and haggle a little. 

Vehicle reports and inspections 

• Buyer beware, buyer’s responsibility: The onus is on the buyer to get a vehicle report to verify the vehicle is debt-free, has been stolen or written off. 
• Beware links to fake vehicle report sites: Don’t click on links sent to you by the potential buyer to vehicle report sites. If they are a genuine buyer, they can get a PPSR (Personal Property Securities Register) report for $2, which has replaced the previous state-based REVS check. 
• Beware fake links for vehicle inspections: The same goes for mechanical inspections, sometimes also called 100 point checks. Genuine buyers can arrange their own pre-purchase vehicle inspections. 

Taking payment when selling a car privately

• Cash is king: Your safest bet is to stick with cash or, if you must, a bank cheque. 
• Bank transfers: If opting for a direct transfer, ensure the payment is transferred immediately with PayID, and don't hand over keys until you’ve confirmed the money is in your account. Or, finalise it in person at the buyer’s bank – ideally one you hold an account with so funds appear instantly.  
• Beware of digital red flags: Be cautious if the buyer brings up PayID too early or pushes for alternative payment methods like crypto, PayPal, or Western Union. These tactics are often used by scammers. 

For more tips on selling a car privately, see our article “How do I sell my car?”  

Remember: If a fast sale at your set price seems too good to be true, it probably is! Keep your spidey senses on alert. 

Do you know of any other car-buying scams? Let us know.