Used Car Scams That Sellers Fall For And How To Avoid Them

When everything appears to be in order, selling your car may seem like a straightforward process. After posting an advertisement online and taking a few calls, you run into a potential customer. However, that's precisely when things can go wrong. Clever scams that appear authentic at first glance defraud thousands of car sellers in India each year.

These scams are made to appear convincing, courteous, and professional. When they encounter a buyer who seems too polished to be questioned, even seasoned sellers become less cautious. Here, we are going to explore common used car scams that even smart sellers tend to fall for.

Most Common Used Car Scams in India

Nowadays, scammers no longer operate with rough tricks. They know how internet listings operate and have formed a formal process to scam people. They appear trustworthy by using cloned payment screenshots, duplicate apps, and fake IDs. What begins as a casual conversation about your car could turn into its loss, legal issues, or worse, its total disappearance. Let's examine the most prevalent frauds that even knowledgeable sellers unintentionally fall for and how to avoid them.

Fake Payment Confirmation

Fake payment confirmations are the most common type of used car scam. After viewing the vehicle at your house, the buyer accepts the price. They pretend to be transferring money online in front of you. A message confirming the deposit shows up on your phone in a matter of seconds. Although it appears real, it isn't. Usually, the message is a screenshot that has been altered to appear to be a real bank alert.

Many sellers hand over their car keys before the payment actually reaches their account. Hours later, when they check their balance, they realise nothing has arrived. By then, the buyer and the car are already gone.

Hence, it is advised to always check your bank statement or SMS from the bank before handing over your car keys. Never trust screenshots or messages shared through third-party numbers.

Duplicate Buyer Identity

Fraudsters frequently impersonate government officials or business executives. They speak authoritatively, dress formally, and carry visiting cards. They may even show up in a car driven by a chauffeur. They try to gain your trust by looking this way. After the transaction is complete, they give you a photocopy of an authentic-looking but fake ID.

Later, when the car gets involved in traffic violations or illegal activity, you receive the challans or police notices. To avoid such trouble, always verify the buyer’s ID in real time. Ask for an original Aadhaar or driving licence and cross-check it on the official UIDAI or Parivahan websites. If the buyer refuses, end the conversation politely and move on.

Overpayment Trick

Another kind of used car scam is the overpayment trick. This scam looks like a stroke of luck at first because a far greater amount seems to be credited ‘mistakenly’ to your account. They call you immediately to apologise and request that you refund the excess. Many sellers, considering it to be a fair thing, send the difference back without checking if the first transfer has actually cleared.

The truth is, the original payment never goes through. The refund you send becomes the scammer’s profit. To avoid this kind of scam, always wait for payments to reflect fully in your bank before taking any action. If someone insists on urgency, treat it as a warning sign.

Fake Dealer Or Agent

Some scammers pose as used car dealers who promise instant sale and doorstep pickup. They claim to have buyers ready and only need your car for one day to show around. Once you hand over the keys, they vanish with the vehicle. These people often operate with fake websites, staged offices, and paid online reviews to appear legitimate.

If you wish to sell through a dealer, choose one with a verified business address, GST registration, and a proper sale agreement. Avoid informal verbal commitments. Always sign a delivery note mentioning the car’s condition, price, and date of handover.

False RTO Clearance Promise

Another growing scam involves fake RTO intermediaries. They promise quick ownership transfer or tax clearance in exchange for a small fee. Once you share your documents, they vanish. Some even misuse your papers to register other vehicles illegally.

Never hand over your original RC, insurance, or ID proofs to anyone who isn’t from an authorised centre. Use the official Parivahan website or recognised service partners to complete all RTO processes.

Test Drive Theft

This one is surprisingly simple. A buyer shows genuine interest, requests a short test drive, and drives away, never to return. Many sellers hesitate to sit in the passenger seat because the buyer appears respectable. That’s exactly what the thief counts on.

Always accompany the buyer during every test drive. Check their licence before starting the car and keep your phone ready to track or record details if anything feels suspicious.

Escrow And Online Platform Fraud

Another scam that’s expanding its reach is fake websites. Fraudsters use phony escrow services and fake websites that list cars for sale. In the name of verification, they request that you provide OTPs, payment information, or login credentials. Their shared links frequently have the exact same appearance as legitimate websites, but they are made to steal your personal information.

Steer away from these troubles by examining the web address carefully before clicking any links on it. You can also check the reviews of the said website of the service provider on the internet to check if it is real or a fake website. If you are not on a verified platform, do not share any sensitive information.

How To Sell Car Safely With CARS24

When you use a reliable platform, selling a car doesn't have to be dangerous. From beginning to end, CARS24 offers each seller a safe and open process. You receive a guaranteed payment straight into your bank account, a verified buyer network, and an instant car valuation. There is no room for fraud or phony transactions because the entire transaction is conducted in a completely secure environment with documentation support.

CARS24 guarantees that your car transfers legally with full RC transfer and payment confirmation, unlike unconfirmed buyers or strangers you meet online. You don't have to follow up with buyers, check paperwork, or be concerned about fraud. Everything takes place in a single, secure visit.

Final Thoughts

Being aware is your best defence against scammers, who are constantly coming up with new ways to trick you. No matter how compelling the offer seems, never rush a sale. Legitimate buyers adhere to the correct legal and verification procedures. Sell your car carefully and sensibly to safeguard your vehicle, your finances, and your peace of mind. You are choosing peace of mind with each transaction when you use a platform like CARS24, not just a car sale.