Selling my car and afraid of geting scammed w/ a bad check...looking for advice

[fireberd350]

I have a potential out of state buyer and am concerned it may be a scam. Actually I'm about 80% it is a scam. The buyer states his car was stolen recently and has been waiting for the insurance check from USAA (Military Ins/Banking provider). I'm now told he has the money and USAA will be issuing me a Certified check. I was confused why his insurance company would issue me a check but it turns out USAA does loans too and they are issueing the check from the loan. I checked the website and it all pans out. I had a USAA rep contact me (at my request to the buyer) and explain some things to me. I asked for all his info and his supervisors info. He seemed a little hesitant with his answers. I will follow up with USAA today and validate the names he provided. The USAA checks out as a legit company. The buyer stated he was in the military and I did a check on his name on military.com with no hits.

I did some research on these check scams and they are known to even fool some serious security checks. Everything is legit and looks clean and the money clears. Then a week or so later is when it's discovered to be fraud.

If the buyer trys to send me a check for my car plus the amount of the shipping and expects me to send him the difference in return then I will know 100% it is a scam. Otherwise what kind of advice does anyone have?

I called my insurance company and they said once the title is signed over they offer zero protection.

Other things worth noting is the buyer didn't negotiate at all on the price, he didn't really care about asking many questions or seeing specific pictures. I even offered for his own piece of mind since he's buying sight unseen. It's almost as if he doesn't want to be bothered with any of that b/c he just wants to get the deal done and take my $$ and car.

Any insight would be great. I'm most interested in what kinds of research I can do to protect myself.

Thanks, Steve M

 

[fireberd350]

I called USAA and everything pans out. All the info he gave me as well as the info the USAA rep gave me about himself and his supervisor. Kind of scarey b/c I was sure all signs were leading towards a scam. I'm still not certain about this tho.

 

[bison]

Give him the payment options. Cash, or wired money. Nothing else is acceptable unless he brought a bunch of MO's that could be verified with him still present. Or wait for his payment to clear before you release the car and title. If he says he cant do that then tell him to go phuck himself.

 

[bison]

I'm still not certain about this tho.

Then dont do it.

 

[57loboy]

Hmm... Maybe hold the title/car until the check from USAA clears. This will prevent him from issuing a "stop payment" on the USAA and/or bank check.

I'm sure others will have some ideas too... I've not done something that pricey with an unseen buyer. i have sold cars (stripped carcasses actually) on ebay to out of state buyers and was paid by PayPal so I was covered there, but then again, $356 for a stripped '92 F250 shell is in a different league.

 

[Just a Six??]

DO NOT realease the car for 15 days after the Cert Cheque goes into your branch & is given to the Manager!! I personally know a story that the Manager said the cheque was good, the Vette was gone & 10 days later it was all BS!! The Manager lost his job & the guy got his money on a BAD Cheque!! The bank ATE it!! I know this for a fact so be careful.
PS: This was in the 80's & they didnt have all the tech they do now but protect yourself. If he cant wait 15 days to ship the Too Bad for him!! He can Bring CASH!!!

Funny enuf I got my car from a Bank manager & he was paid in CASH! $22K in $100 bills!

 

[stack1]

This sounds like a scam to me. I've been an insurance adjuster for 12 years. The check that any insurance company issues for a total loss goes to the titled owner. Period. It doesn't matter if the titled owner wants it made out to someone else. Again, no other name goes on that check but the titled owner. I would run away from this asap! I'd have him bring cash and meet you at your bank, nothing else. Straight cash homie!!


Ooops, I just read the original post again and I must have skimmed over the part about the USAA loan. I agree with the others below me that wire transfer would be the best method.

 

[SIXBANGR]

bank to bank

transfer. I just did this 3 months ago. His bank calls your bank.They handle every thing.

 

[FlyinGN]

my father in law just sold a classic car to someone in Sweden. Accpt only wired money to your bank account. BUT open a new account first and give him that account number. Don't ship the car until the $$ has cleared and remove it from that account and deposit it into your main account and close out the account you made for this tranaaction. It works. This is the best way. it went smooth . Do not accept anything else.

 

[CaptainInsane-O]

USAA is definately a legit company... my FIL worked for them for ~25 years (recently retired), my wife & I use them for our car and homeowners insurance coverage and my wife's car is financed through USAA as well.

 

[TurboGA]

USAA is about 1/2 mile from my house.:biggrin:

 

[fireberd350]

The check is from the USAA auto loan which is why its made out to me. USAA said they need a copy of the title to check for liens and to confirm who to make the check out to. I will ask about a wire transfer and Frank I like the idea of having an account for just this transaction and then moving it immediately. There's no option for cash since its a deal across the country. It looks like my safest option is a wire transfer and if I have to deal with the loan check tell him I need to wait 10 business days for it to clear.

I called USAA and they confirmed that this person has started and been approved for a loan for my car, something still seems fishy though.

Thanks for the tips so far.

 

[SlickTR]

The check is from the USAA auto loan which is why its made out to me. USAA said they need a copy of the title to check for liens and to confirm who to make the check out to. I will ask about a wire transfer and Frank I like the idea of having an account for just this transaction and then moving it immediately. There's no option for cash since its a deal across the country. It looks like my safest option is a wire transfer and if I have to deal with the loan check tell him I need to wait 10 business days for it to clear.

I called USAA and they confirmed that this person has started and been approved for a loan for my car, something still seems fishy though.

Thanks for the tips so far.

Sounds legit to me, i bank with USAA, great company, and I know someone that has been in a similar transaction. Just have USAA deal directly with your bank that way there is no question. Where is this guy located at and what branch is he in?

 

[excobraguy]

Don't mean to state the obvious but why don't you just hold the car until the check clears.........seems simple enough to me.

 

[BLACK6PACK]

I took out $7000, handed it to my brother, he hopped on a plane to Buffalo NY from Ft laud and paid $7000 cash to the guy at the airport, hopped in the car and drove it home.

When I bought my GTO, I went and looked at the car (300 miles away), struck a deal, went to the bank and had them cut the seller a bank check right there on the spot. It took about 5 minutes.

 

[1chance]

I say wait until it clears, then theres no ???

 

[Grimster]

This is how I bought my car pretty much, only I used a Capital One "blank check" but same thing, I sent a form to the seller, he filled it out, and sent it back that went to Cap One they then verified the info, "activated" the check I already had then I drove to VA and bought the car, drove it home. Got the title about 8 days later because his CU wouldn't release the title till the check cleared into their bank.

 

[no-nos]

This sounds like a scam to me, forget it, cash in hand or wire transfer no exceptions!! don't rush the car will sell

 

[theMonch]

another option

Tell him to have the check made out to himself, deposit in his own account, and then have his bank issue you a certified check to your name. Then he can mail it safely.(only you can cash/deposit it) Once the certified check gets to you. Go to any bank, not yours, and cash it. Now you have lots of money to do with as you please. You will have to show ID to cash it at a bank that you do not have an account with.

Just dont get it in singles and make any pit-stops on the way to your bank to deposit it.



You could cash/deposit it directly into your own bank, but by cashing it at a bank that you do not have an account with, there is no way for the bank to take the loss out on you, if there was one. There won't be either. Certified checks are as good as cash.

I have used them plenty of times so as to not have to travel with cash when picking up a few out of state purchases. I usually have them made out to myself, then cash them locally after the deal has been made. This way I don't get pidgeon-holed into paying the amount agreed before travel, if the car doesn't turn out to be as represented. This also makes the seller feel comfortable with a nice stack of cash when I drive away with their car.

 

[wile87]

i see your reason for being worried but you have done the necessary checking. they said they needed a copy of title and so forth to make sure your not scamming either. just make sure not to alienate the guy or you could lose your deal.