Selling a car on your own can get you a good price, but it also puts you in front of strangers, payment tricks and DMV paperwork. Here is what to watch for if you sell your car privately in California.
1. A check for more than your asking price
A "buyer" who can't see the car in person sends a check for more than you asked and wants you to send back the difference. The Federal Trade Commission warns that the fake check can look real and even show up in your bank account, but the bank can take weeks to find out it is fake, and then you owe the money. Never accept a check for more than your price, and never send money back to a buyer.
2. "Send me the code so I know you're real"
Some scammers ask you to read them a code sent to your phone "to prove you are not a fake seller." That code can let them open an account, like a Google Voice number, tied to your phone number. Never share a code you receive by text.
3. Buyers who can't meet, shipping agents and unknown escrow sites
Be careful with buyers who are "out of the country," send a shipping company to pick up the car, or insist on an escrow website you have never heard of. Real local buyers come to see the car.
4. Fake "payment sent" messages
An email or screenshot that says money was sent is not money in your account. Wait until the payment has cleared, or until the bank that issued a cashier's check confirms it, before you sign anything.
5. Test drives
Meet in a busy public place in daylight; many police stations have safe exchange spots. Look at the driver's license and take a photo of it, make sure they have insurance, and ride along. Keep your keys until you are in the car together.
6. Handing over the title too early
Sign your title (the "pink slip") over only after you are paid in full. If you still owe on the car, your lender holds the title, and the loan has to be paid off before the title can transfer.
7. The release of liability
California requires the seller to file a Notice of Transfer and Release of Liability with the DMV within 5 days of the sale. Until it is filed, parking tickets, tolls or even an accident with the car can come back to you. Keep a copy for your records.
8. The smog certificate
In most private sales, California expects the seller to provide a valid smog certificate. Check whether your car needs one before you list it, so the sale is not held up.
9. Your personal things and accounts
Before the car leaves, remove your garage door opener, toll transponder (FasTrak), papers in the glove box, and any phones paired to the car. Sign out of connected-car apps and cancel your insurance only after the sale is reported.
The easier way: sell it to a dealer
At 123 Car Buying in Upland we buy cars every day, even if you still owe on them. No strangers, no fake checks and no ads. We pay off your loan, do the DMV paperwork with you, make sure the release of liability is filed, and you leave with the car out of your name. See how we buy cars or get an offer now.