Selling Your Car on Craigslist? Don’t Fall for This Scam

Craigslist is notorious for the scammers who use it. Whether it’s a person selling an item for far more than it is worth, or shady financial assistance, it seems like there is always a new Craigslist scheme. But it’s not just buyers who should beware of anyone making promises online. The latest Craigslist scam targets vehicle sellers, and could leave them holding a loan, but no car.


There are all kinds of reasons you may need to sell a car before it has been paid off. But selling a vehicle with a bank lien on it can be difficult. If you aren’t looking for a trade-in you might feel like you have to get creative to get out from under the bank loan. And that could lead you to Craigslist, and bigger problems.

At The Liblang Law Firm, PC, we have been seeing a trend: clients looking to sell financed cars are falling victim to out-of-state buyers passing bad checks and leaving them holding the bill. Here’s how it works:

1. The seller lists the vehicle for sale on Craigslist.
   
2. An out of state buyer offers to buy the financed car from the seller by sending the entire purchase price to the victim's bank. The buyer promises that after the check clears, the bank will refund the difference between the lien amount and the purchase price to the seller.
   
3. The buyer sends the bank what looks like a certified check and has the seller confirm with his or her bank that the check was received and it is okay to release the vehicle and transfer title to the buyer.
4. A week or so later, the bank will discover that the check it received was fraudulent.
   
5. The bank then informs the seller that he or she is still responsible for the loan, even though the vehicle is long gone.
   

In a new twist, these scammers are now starting to use the victim's identity for the next scam, making the seller look like the bad guy in the next fraudulent transaction.

The Michigan State Police Automobile Theft Prevention Authority (ATPA) is investigating this Craigslist scam, looking for ways to protect sellers from fraud by these out-of-state buyers. But the best way to protect yourself right now is through careful dealings online. Here are some ways you can protect yourself:

• Never give your financial details to buyers.
  
• Deal with your bank directly, even if it takes a little longer.
  
• Hold the title to the vehicle until any payment clears.
  

If you find yourself on the short end of a Craigslist scam, The Liblang Law Firm, PC, is here to help. Dani K. Liblang, our consumer protection attorney, can negotiate with the bank, investigating authorities, and collection companies, to make sure your rights are protected. If you have been targeted by a Craigslist scam, contact The Liblang Law Firm, PC, today for a free initial consultation.