[Philkotse tips] Anti-fraud tips when buying and selling a used car

Purchasing a used car instead of buying a new one saves people a lot of money, while sellers also get to earn from their cars when they want to. This type of transaction is usually beneficial for both parties if things go smoothly.

It usually includes two strangers and there could be a possibility that the person you’re transacting with isn’t as honest as you are. That’s why Philkotse.com gathered tried-and-tested tips to keep you safe from fraudulent transactions. Apply them next time you buy or sell a used car to ensure a worry-free deal.

It usually includes two strangers and there could be a possibility that the person you’re transacting with isn’t as honest as you are

1. If you are the buyer

Inspect the car thoroughly

Once you and the other party decided on a place and time to meet, make sure you examine the car properly. Feel free to ask any questions you have with the car and don’t be afraid to inspect the car with your bare hands. Ask the seller if the car has been flooded, been in an accident, or has had a major repair. If the seller says no, make sure by following these tips:

• Go to the side of the car and squat to see the reflection on it. If you see that the image is distorted or wavy then that part may have been repaired.
• Look at the crevices of the closed doors. Do they have even spaces on both sides? If one door has more space when closed then that could mean that part was previously damaged.
• Open the doors, the hood, and the trunk and look for any signs of stray paint. When cars are manufactured, the body is painted first before the installations are added. If you find stray paint on hoses, cables or other areas where paint shouldn’t be, that may be a sign of a recent repair -- and an awful paint job.
• Take a close look at the overall color of the vehicle. Is the paint even all around or are there darker or lighter shades on some parts? That is not a good sign.

Once you’re sure that the vehicle has never been in an accident, you can ask to take it for a test drive. You may or may not like the engine quality. If you’re extra cautious, take a trusted mechanic with you to inspect the car. He should be able to tell you about its condition and possibly how much you should pay for it if there’s a defect.

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Once you and the other party decided on a place and time to meet, make sure you examine the car properly

Examine the car’s documents

Take time to examine the documents that come with the vehicle. Ask for registration, insurance, and other documents that are necessary for you to gauge whether you would like to pursue the transaction. You should also ask for maintenance records that keep track of all the maintenance procedures done on the vehicle.

The maintenance record in any form will do. However, the actual maintenance receipts from the auto servicing shop where the vehicle was taken will be more credible. Make sure you also get any legal documents that have the contact details of the owner of the car if the seller you’re dealing with is just a representative.

The deed of sale documents prove that you have bought or sold a car. It works as a record and it's also a useful document when problems occur in the future. 

If you have bought or sold a vehicle but don't have a notarized deed of sale of motor vehicle document, then that transaction didn't happen.

Take time to examine the documents that come with the vehicle

Meet face to face with the seller

Minor dents and scratches on the car can be acceptable, but having to pursue the deal with a shady seller is something you should be concerned about. Before you get attracted by the offer, you should always take into consideration that you are dealing with a complete stranger.

If the seller exhibits any of the following signs, you may need to rethink the deal.

• Changes mind regarding the meetups or changes the date of car inspection due to suspicious reasons;
• Requests for money transfer before the actual meet-up;
• It only has photocopies of the documents.

Before you get attracted by the offer, you should always take into consideration

Be smart about your money

Regardless of how cheap or how costly the merchandise is, never send advance payment to a stranger – especially if the person seems shady to you. Scammers have a smart way of swindling money out of people whom they choose to “transact” with by befriending them and earning their trust.

There’s nothing wrong with being friendly and polite to the seller. However, make sure you don’t get tangled up in their affairs (e.g. family member is sick, needs cash immediately) in a way that they're asking for a down payment without you even seeing the vehicle yet.

Scammers have a smart way of swindling money out of people

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2. If you are the seller

Meet face to face with the buyer

Set a meet-up in broad daylight and in a public place where people and authorities are close by. Ask for any proof of identity from the buyer. Two government IDs will suffice. If you notice something wrong or suddenly feel skeptical about the transaction, you can kindly decline and leave.

Be cautious with the payment terms

The mode of payment, frequency, and total amount to be paid will be based entirely on your agreement. If the mode of payment will be via bank transfer, make sure to check all names and accounts that the buyer throws at you. If you notice different names and suspect that the buyer may be trying to confuse you, politely say no to the offer.

The mode of payment, frequency and total amount to be paid will be based entirely on your agreement

Transferring the car title to the new owner

Once you’ve agreed on a price, on a mode of payment, and the payment terms, the next step is to hand over the car title to its new owner, also known as transfer of ownership. 

However, don’t do it just because the buyer seems “nice” or has already given you a partial down payment. Instead, show the original car title to the potential buyer and talk with him about the price and the rest of the details.

Once you’ve come to an agreement, tell the buyer that you will be giving him a photocopy of the car title until complete payment has been made. This way, you will have the upper hand in case you would need to take legal action towards the buyer.

If the transaction goes smoothly and the car title has been transferred after full payment was made, still consider keeping a photocopy of the car title for yourself.