Selling a junk car is a great way to get some extra cash. In fact, you can easily use the money to purchase a new vehicle if you need one.
Although there are plenty of companies that purchase junk vehicles, not all of them are legitimate. We’ve put together a guide on how to tell if a junk car buyer is on the up and up.
They Attempt to Handle the Paperwork on Their Own
One of the most important things that you need to do as a seller is to make sure that your vehicle’s paperwork is properly taken care of.
To elaborate, it’s essential that you cancel your vehicle registration and remove your license plates. Shady buyers will attempt to convince you that they will take care of this responsibility on their own in order to offer you a better experience.
Unfortunately, this could result in your vehicle being traced back to you in the future, even if it is used by another party.
For example, let’s assume that a shady dealer vows to handle your car paperwork before selling it to an independent buyer. This new buyer purchases the vehicle with the license plates still attached and registration still valid.
From here, any criminal activity the vehicle is involved in could be traced to you. Instead, take care of these obligations before you hand the car over.
They Offer False Incentives
False incentives are another type of scam that you’ll need to keep an eye out for. More often than not, they come in the form of coupons or discounts that can be applied to a future transaction.
Upon further inspection, the terms for these incentives are often either highly specific, or not explicitly put in writing. Regardless of which situation you find yourself in, the dealer could subsequently refuse to honor their incentive at a later date.
Depending on the details of the initial transaction, you may find yourself having sold your vehicle for far less than it is worth.
They Pressure You to Sell
A red flag that many sellers encounter is when the buyer aggressively pressures the seller to complete the transaction. This typically involves telling the seller that they have very little time to make a decision, attempting to convince them that they won’t be able to sell their car elsewhere, etc.
The goal here is to put enough pressure on the seller to get them to make a suboptimal decision in the buyer’s favor. As with the other shady tactics that buyers sometimes use, this could cause you to miss out on a substantial amount of money.
A reputable buyer will give you all the time that you need in order to make a decision. A common scenario might involve you telling them that you need a few days to think about the transaction, to which they would simply provide you with their contact information.
So, as a general rule of thumb, stay away from situations where the buyer pressures you in any way.
Payment Methods of Payment
Cash is by far the safest form of payment when it comes to selling a junk car.
Once you sign over the title of your car, you will relieve yourself of ownership. This means that there is virtually nothing you can do in order to get your car back if you never receive the agreed-upon payment.
So, your two main options are:
- Only accept cash as a payment method
- Work with a reputable dealer, like All Car Buys, who has a history of fulfilling payment obligations
This will ensure that the transaction goes as smoothly as it should.
Don’t Get Scammed by Your Junk Car Buyer
Otherwise, you could find yourself dealing with a significant number of complications in the future. Fortunately, the above information will ensure that the junk car buyer you work with is a legitimate one.
Want to learn more about what All Car Buys has to offer? Feel free to reach out to us today and see how we can help.