| When buying a new car, trading in your old one is | | | | make sure a stop order can not be placed on it. |
| a quick and easy solution. Of course, you won't | | | | If so, tell the buyer to get one that cannot be |
| get as much money compared to selling it | | | | stopped. |
| yourself. If the vehicle isn't too old and banged up, | | | | You'll need to watch out for counterfeit |
| the difference could be in the $1,000 to $3,000 | | | | guaranteed checks as well. There's darn good |
| range. | | | | ones out there ... so good that you may not find |
| But selling it yourself also comes with a price. | | | | out until your bank tries to collect on it 1 to 3 |
| Many people don't relish the prospect of having to | | | | days later. |
| interact with complete strangers. What if | | | | This actually, happened to a friend of a friend two |
| someone "undesirable" comes to your home to | | | | years ago. The check was so authentic that his |
| look at the car? What if your ad leads to some | | | | bank deposited it without a question. Three days |
| weird phone calls in the middle of the night? | | | | later his bank called him with the bad news. As an |
| In addition to the security factors, there are con | | | | aside, luckily his vehicle was found by U.S. |
| artists out there who'd love to relieve you of | | | | Customs waiting to be shipped overseas. |
| your car, but at no cost to themselves. So, while | | | | Again, the sad truth is that you must call the |
| a private party sale will likely save you some | | | | issuing bank and give them the check number so |
| significant cash, there are some important issues | | | | they can verify its authenticity. |
| to bear in mind. | | | | Some con men may attempt to scam you out of |
| I'm not trying to discourage you from selling your | | | | even more money by giving you a guaranteed |
| car on your own. Literally thousands of such | | | | check for more than the price of the vehicle. |
| transactions occur every day without a hitch. But | | | | They then ask you to refund the excess. This |
| being aware of the rare pitfalls out there will help | | | | scam is particularly prevalent on the internet |
| you avoid them. | | | | where there is an out-of-state buyer who says |
| First of all, don't have prospective buyers come | | | | they've made a mistake so please just wire |
| to your home to look at the car. Meet them at a | | | | transfer the surplus back to them. Again, verify, |
| very public location such as the local supermarket | | | | verify, verify. |
| or mall. There's just no reason people need to | | | | Another scam involves phony escrow accounts. A |
| know your address until you trust them. | | | | buyer may want his payment held in escrow until |
| Second, whether you're a male or a female, bring | | | | the transfer is complete. This is not too unusual a |
| someone with you ... a burly, rugged looking type | | | | request from a buyer and is done all the time in |
| would be ideal if you've got one of those around. | | | | real estate. It's just less common in cars. The |
| They point is, someone with potential ulterior | | | | important thing is that you should be the one who |
| motives may have second thoughts when | | | | selects the escrow company. |
| outnumbered. | | | | What you don't want to have happen is to get a |
| Next, don't accept any personal checks. This | | | | confirmation from an escrow company that the |
| probably seems obvious enough, but some people | | | | money is there, only to find out later that both |
| still get charmed into it by a gifted con man. | | | | the company and the confirmation were phony. |
| And related to this, don't take a certified check or | | | | Now, I've probably made you paranoid. The fact |
| a guaranteed check either until you contact the | | | | is, however, that the odds are overwhelmingly in |
| issuing bank to verify it. You see, they're not | | | | your favor for completing a problem-free, |
| always as good as cash. Some banks actually | | | | by-owner transaction, and saving a lot of money |
| allow these checks to be stopped. So, while your | | | | over trading it in to a Dealer. Just by being mindful |
| car buyer is driving away with your car, he's also | | | | that there are a few rotten apples out there, and |
| on his cell phone putting a stop on the check. | | | | what they may be up to, you're just about |
| Before accepting the check, call the bank to | | | | guaranteed a smooth transaction. |