Private Car Sales: How to Stay Safe When Buying or Selling Your Vehicle

Buying or selling a car privately can save money. According to Auto Trader, the average price of a new car in the UK now exceeds £40,000, which is why many people turn to private sales. Source: https://www.autotrader.co.uk/content/advice/average-car-prices

However, cars are high-value items and a common target for scammers. The DVLA warns sellers never to release a vehicle until funds have fully cleared.

This article outlines common car sale scams, how to avoid them, and ways to stay protected.

Common Scams in Private Car Sales

1. Fake Bank Transfer ReceiptsA buyer shows a fake confirmation of payment. Once the seller hands over the car, the money never arrives.

2. Test Drive TheftFraudsters may request a test drive but fail to return the car. Ensure insurance is verified before any test drive.

3. Overpayment ScamThe buyer sends too much money and asks for a refund. Later, the original payment is cancelled or bounced.

4. Deposit DisappearancesA seller requests a deposit to “hold” the car and then disappears.

5. Vehicle MisrepresentationCars sold with hidden issues, outstanding finance, or incorrect mileage can leave buyers liable for repairs or legal issues.

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DVLA Guidance for Safe Sales

The DVLA recommends:

• Never release a car until funds are fully cleared.

• Complete the V5C logbook transfer online or by post.

• Provide a receipt of sale signed by both parties.

• Confirm buyers have insurance before allowing test drives.

How to Stay Safe

1. Verify the Buyer or SellerCheck the ID of the other party and ensure the seller is the registered keeper.

2. Meet in Safe LocationsArrange meetings in public, well-lit areas or police station “safe zones” if possible.

3. Use a Secure Payment AppA digital holding account keeps funds safe until both the car and documents are transferred.

4. Inspect the Car ProperlyCheck MOT history: https://www.gov.uk/check-mot-historyVerify mileage and run an HPI check to ensure no outstanding finance: https://www.hpi.co.uk

5. Keep a Paper and Digital TrailRetain receipts, agreements, and payment records in case of disputes.

Private car sales can be safe if you verify identities, meet in secure locations, and use a digital holding service for payment. Scammers are sophisticated, so relying on trust alone is not enough.

Using a secure digital payment method like Trust Toucan protects both buyers and sellers, and ensures the transaction can be documented for legal purposes if needed.