Purchasing a used car is one of the best ways to save big on your next auto purchase. When you shop from private sellers, you can bring down costs even more. If you are going to be shopping outside of reputable used car dealerships, however, you need to know how to protect yourself against used car scams and fraud.

According to a report by Verified.org, auto scams have cost car buyers over $54 million during the course of four years, with states like Connecticut, Missouri, New Hampshire, and Ohio being the hardest hit. Let’s go over some of the popular scams and fraud tactics you should know about and how you can avoid them.

If It’s Too Good to Be True, It Probably Is

As with anything in life, if it’s too good to be true, it probably is. If you see an ad for a vehicle that’s way below market value and is advertised as having no major mechanical issues, it’s best to save your time and energy and run the other way. Even if the vehicle is real, private sellers may be hiding whether the vehicle has major mechanical issues.

Looking up the vehicle’s VIN number on websites like VinHistoryUSA can help you get a better understanding of the vehicle’s history. Even then, if you’re dealing with a scammer, tactics like title washing can hide major crashes and mechanical issues. It’s best to save your time and energy and steer clear of deals that are too good to be true.

How to Spot and Avoid Scammers When Shopping Used Cars

Online scammers are everywhere, with the auto industry being one of the hardest hit. Scammers who appear to be private sellers will try to reel you in with lower-than-average prices on popular models like Honda, Ford, Chevy, and others.

When shopping private sellers, look for red flags in the ad, including prices that are too good to be true, mentions about wire transfers, and sellers who seem overly eager or unnaturally flexible with their ad or negotiations. Most importantly, NEVER agree to send any money under any circumstances to anyone selling a vehicle online, even if you do feel they are credible.

Vet a Private Seller

This next tip will require you to get creative and tap into your investigative skills. Some marketplaces are more reputable than others when shopping for a used vehicle. For example, platforms like Carvana and CarMax won’t be advertising scam vehicles. However, be wary of private sellers who post as if they’re affiliated or associated with these popular platforms.

If you’re looking on platforms like Facebook Marketplace, Craigslist, or other community-selling websites or apps, take a look at who the seller is by exploring their profile. Determine whether they are a real person, and if they are, do they have a history of buying and selling vehicles? If they do, steer clear of the posting. They likely flip vehicles regardless of their condition. In many states, this practice is illegal.

With just a bit of investigative effort, you’ll be surprised at how much headache and heartache you can avoid by vetting a private seller before you even contact them.

Work With a Reputable Used Car Dealership

Working with a private seller can be a great way to bring down the cost of a used vehicle even further. However, it does bring with it a heightened level of uncertainty because you really don’t know who you’re working with.

One of the best ways to avoid the stress of buying a used vehicle is by working with reputable used car dealerships. Used car dealerships have many safeguards in place so that you feel confident in your used vehicle purchase. Shop with confidence, as many dealerships provide return windows, extra protection via warranty coverage, and complimentary maintenance for a defined period of time.