How To Stay Safe When You Sell Your Vehicle For Cash

Selling a vehicle for cash is a popular way to make money that has been around for many years. Whether you agree to a private sale, look online for a ‘cars for cash’ type of business or use a dealership to cash in your car, it is important to stay safe, both physically and in terms of avoiding scams, counterfeit money and other legal and ethical problems.

Cover Your Back

Always make sure that you are doing everything you can to ensure a safe and legal sale. Collect all relevant paperwork, ready to show prospective buyers if they ask for it. This includes the VC5 certificate, MOT certificate, repair receipts and a log book. Check on the status of any finance deals associated with the vehicle. Make sure the service history is as complete and accurate as possible. Make sure any adverts you place are truthful and not at all misleading.

Answer buyers’ questions honestly, especially if the vehicle has been in an accident or has undergone major repairs. Never hand over any paperwork, or allow it to be copied until the sale is complete. Once it has gone through, register the change of ownership with the DVLA straight away, as you don’t know what the new owner will do with the car once it leaves your possession.

Protect Your Property

However keen you may be to close the sale, remember that the vehicle remains your property until the buyer hands over the cash. Do not let them take the car for a test drive alone, or drive off with the keys. If they want someone else to look over the car, or a mechanic to give an appraisal, ask them to bring the people in question to see the car on your premises. If they seem reluctant to do so, this could be a sign that you should not proceed with the sale.

If you don’t want to give out your home address, use a reputable dealership to sell your vehicle for cash or arrange a meeting in a public, well-populated place, such as a large store car park. Wait until any bank transfers have landed in your account, or until you have been handed the whole asking price in cash before handing over the keys.

Scams And Counterfeit Cash

Money laundering via paying for a vehicle with ‘dirty’ money has become prevalent across some parts of the world. Many dealers will not deal in cash, preferring bank transfers and the like instead. So, some criminals are turning more to private sales instead. If you are planning to sell your vehicle for cash in a private transaction, this is not necessarily a bad thing. You just need to do your research and stay on your guard for anything that feels amiss.

One good way of doing this is asking the buyer to meet you during business hours (i.e. during daylight) and go with you to the bank so you can watch them withdraw the money and count it for you on the spot. If they are unwilling to do this, it could be a red flag. Take someone you trust along with you if possible for added protection. Never agree to sell your vehicle for cash to someone who is not interested in coming to view it first as this could be part of a wider scam. Do not agree to paying any ‘transportation’ costs for a supposed overseas buyer, as this could be a potential shipping scam.

Used Car Dealerships Are Usually The Safest Option

Selling your vehicle for cash privately might reap slightly higher prices than using a dealership, but it also comes with less protection against scams and physical problems. It is also far easier to put the sale through a second-hand car dealership as they can take the car for you, check it over, valet it and find potential buyers for you. Another safe and easier way to sell a second-hand car to a dealership is via part-exchange where the dealer takes the value of your current car off the selling price of a new or different second-hand one. This transaction allows you to sort out the sale of the old vehicle and purchase of a new one all in the same place, saving time and effort. It also does away with the need to pay third-party selling fees or advertising costs for your old car.

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