Selling your junk car can be a great way to make some extra cash. But beware! There are a lot of scam artists out there who are ready to prey on junk car sellers with gimmicks and too-good-to-be-true offers.
It is critical that you are aware of dodgy junk vehicle buyers who are looking to make a quick buck at your expense. There are many potential junk car scams you could fall for, so you really need to know what to look out for.
Below we discuss the six most common scams, which include:
- Using fake advertisements to get your attention
- Offering cash for junk cars then changing the price (bait and switch)
- Manipulating the price to make you think your car is worthless
- Not having a license (and getting defensive when you ask)
- Making you pay for the tow truck drivers
- Suspicious payment methods
Apart from these, scam artists will also put lots of pressure on you to go through with the sale, and try to confuse you around every corner.
It is best to keep your personal information safe; don’t share it with others and know which steps to take to protect yourself from falling victim to fraudulent junk car buyers.
1. Fake Advertisements
Scammers are smart – they know how to use online ads to grab your attention. Online classified websites may have ads offering cash for junk cars, and ask you to provide your personal information as soon as you make contact.
Once they have your info, you are trapped, as they tend to manipulate you to go through with the sale (or simply ghost you and use your personal info to their advantage).
These fake ads also use catchy phrases that make lofty promises, like offering you the most money when compared to other buyers – when, in fact, they don’t.
In some cases, a junkyard listing an advert may include other non-cash incentives, like coupons. These coupons may look great on paper (in every sense of the word) but are often fake or can only be redeemed under very specific (and unlikely) circumstances.
Never trade your car for anything other than cash from trustworthy junk car buyers! This article will discuss how to verify buyers further down.
2. Bait and Switch
Ah, one of the most classic junk car-selling scams – the ol’ bait and switch.
With this scam, the buyer will make you an offer over the phone or email, but once they come to inspect the car or hook it up to the tow truck, they suddenly change their offer.
They will blame you, of course, saying it is in a worse condition than you stated, or that it is a model that doesn’t fetch a high price.
This tactic is very common and often also efficient since the people wanting to sell their junk cars don’t want the hassle of arguing or starting over.
The best way to avoid this scam is to verify the price by providing your car’s VIN upfront – that way they can’t claim that they didn’t know the make, model, or condition of the car.
3. Price Manipulation
If you search online for “buying junk cars reviews” you will probably find some disgruntled reviewers describing their experiences – and one of the most common situations complained about online is having used-car dealers changing the car’s price.
A trustworthy junkyard will know how much your car is really worth. A scamming junkyard will pretend like your car is basically worthless – and they will use fancy jargon to convince you that they know what they’re talking about.
They will tell you that your scrap car has no value, offering you next to nothing while they go off and sell it for a high price to other car dealers.
Any junk car has value – it contains metals that can be recycled or reused – so never accept a meager price from junk vehicle buyers if your research (and multiple other offers) told you you should be getting much more.
4. Operating Without a License
For obvious reasons, you want to sell your car to used car dealers that are licensed to operate in the industry.
But, when the prices for scrap metal soar, many scam artists want to take advantage. They quickly establish fake companies to buy scrap cars which they can go on to sell for a lot more than they paid for them.
The easiest way to spot if you are dealing with a scammer is to ask to see their license. Chances are you will be met with aggression or a lot of excuses as to why the operating license can’t be shown.
Unlicensed buyers also won’t do any of the paperwork for you, which is a huge red flag that you’re dealing with someone dodgy.
If the buyer or junkyard doesn’t want to show their license, it’s best to walk away.
5. Charging for Towing
Free vehicle pickup is standard if you sell your junk car to a reputable salvage yard or buyer, like Junk Car Medics.
Many cash-payment-for-junk-cars scams insist that standard practice doesn’t involve free towing, and charge you a towing fee.
If the buyer recommends an “affordable” or “trustworthy” towing company to you, it’s probably their friend just waiting to make a quick buck.
Sometimes you only find out about the towing fee once they come to collect the car. When this occurs, they not only offer you less money than the car is worth but demand you pay them on the spot for the tow!
The really sneaky guys will include the towing price in the car’s cost, and then ask you again to pay for it once they arrive – meaning you pay double for towing (when it should be free).
Make sure to ask in advance if there are any additional fees involved for vehicle removal, and if there are – run!
6. Bad Payment Methods
Payment by check may be how many companies operate, but it is one of the tried and tested common junk car scams.
If junk car buyers offer to pay you by check (or offer to mail you a check), odds are the check will bounce and you will never see the money.
It is also easy for scammers to recreate a proof of payment, tricking you into signing on the dotted line – but the money never arrives in your bank account.
If you sign over your car’s title and the check never clears, that’s your loss. The car is theirs now, and you may be stuck with banking fees for the bounced check.
Cash is king, especially when it comes to junk cars. Trustworthy buyers will either pay you the promised amount in cash on arrival or deposit the cash before you sign the paperwork.
You should also avoid installment payment plans at all costs. Scammers use this trick to pay you the “first” installment but you never receive the rest, and the car is no longer yours.
If you’re told that your money is held in escrow, be wary! An escrow service should be a third-party service that protects the transaction. The scammer can be in cahoots with a fake escrow service that will make your money disappear before you have the chance to claim it.
To avoid this scam, always make sure you have the money (preferably cash) in hand before you sign over the car.
How To Avoid Scams When Junking a Car
You decided you don’t want your junk car anymore, and you are aware of all the potential scams out there. You can find some tips below on how to avoid scams and make sure you get paid your car’s value from a reputable junk yard.
Insist on seeing the buyer’s license
If the junk car buyers who are insisting you work with them get upset when you ask to see their license, odds are it’s a scam!
Always insist on seeing the license to make sure you are working with legitimate businesses.
Read online reviews
The best way to verify a buyer or business is to read reviews about them. People are quick to post reviews of negative transactions (and positive ones too), which should be a clear warning signal for you to take your business elsewhere.
You can also ask the company you are dealing with for references – if they are trustworthy, they will be happy to provide them.
Get multiple quotes
Approach several local and online salvage yards and get several quotes to determine the true market value of your scrap car. This will help you to do your research and know what your car is worth.
If the buyer offers you way below what your research indicated you should be getting, they’re trying to lowball or cheat you.
Sell directly to the recycler
Never sell your car to tow truck drivers or to a middleman who promises to find buyers for you. By selling directly to the recycling center, you are almost guaranteed to be working with a trustworthy buyer. And if they offer free towing, that is green flags galore!
Get paid at the time of sale
Never settle for checks, installments, or bank deposits. Scammers will promise to pay via mail or send you fraudulent proof of payments, causing you to sign over the car before you ever get the money.
The best way to prevent a scam is to insist on being paid in cash upon collection of the car – and make sure they pay you exactly what you were quoted.
Don’t sign the papers before getting the money
This tip goes hand-in-hand with the one above.
Always make sure you have the money in your hand (or bank account) before signing the car over to the buyer. Once you sign over the car’s title, it becomes the property of the buyer. If you don’t have the money yet, there isn’t much you can do about it and the car is theirs.
Avoid overseas transactions
You might stumble upon an overseas buyer who is offering you a lot more money than the local guys. But, trading and transporting a car overseas opens a lot of doors for potential scams. It is best to stick to local brick-and-mortar auto shops or reputable online buyers, like Junk Car Medics.
Look for these buyers
- They don’t pressure you into a sale.
- They don’t change their offer upon seeing the car.
- They offer free vehicle pickup.
- They take care of all the paperwork.
- They only ask for personal information after the sale is made and you receive payment.
FAQs
What is the easiest way to spot a junk car scammer?
Scammers will have a couple of obvious red flags. The first is that they don’t have a license (they may claim they do, but then refuse to show it to you). Other tell-tale signs are declaring your car has almost no value, changing their initial offer to something cheaper, charging you for towing, and insisting that they pay by a means other than cash.
What are the signs of a trustworthy junkyard?
One of the clearest signs that you are dealing with a trustworthy salvage yard or junkyard is that they have stellar online reviews! People like to share when they receive good service. Trustworthy junk car buyers will also offer free towing and pay you when they accept your car.
What should you do if you suspect you’ve been scammed?
Being scammed is never a fun experience. If you suspect you were the victim of a scam when selling your junk car, immediately stop dealing with the scammer and start to gather evidence. This can be any communication you had or paperwork they sent you. Inform local authorities (like the local police) about your suspicions.
Also, keep a keen eye on your accounts if you share any personal information with the buyer. You may have to change your passwords, pause your accounts, and notify your bank of potential fraudulent transactions.
