Junk car scams and how to avoid them

Most junk car sales go fine, but a few tricks come up again and again. Each one has a simple defense. Read this before you accept an offer.

1. The price cut at pickup (“bait and switch”)

How it works: A buyer gives you the highest quote by far. When the tow truck shows up, the driver finds “problems” and offers much less. You’ve already planned around the sale, the car is half hooked up, and saying no feels hard.

How to avoid it:

• Describe the car accurately and in writing. Say whether it runs, what’s missing (catalytic converter, wheels, battery), any flood or fire damage, and whether you have the title. A quote based on wrong facts will change, and fairly.
• Get the offer in writing (text or email) with the details it’s based on.
• Ask before you book: “Is this price guaranteed if the car is as described? Is towing included? Is there a fee if I turn down the offer at pickup?”
• Be suspicious of the outlier. If one quote is far above several others for the same description, ask why. See how junkyards price cars.
• You can say no. The FTC advises resisting pressure to act immediately, and notes that a legitimate business won’t rush you.¹

2. The open title

How it works: The buyer asks you to sign the title but leave the buyer’s name blank, “to save time.” Now the car can change hands without anyone recording it, and you’re still the last owner on record.

Why it matters: An open title lets the car be resold without the sale ever being recorded. Until your state’s records show you sold it, you may be the one who gets the parking tickets, tolls or worse. In California, for example, liability for later violations moves to the buyer after the DMV receives the seller’s notice.²

How to avoid it:

• Fill in the buyer’s name (individual or business), the date and the odometer reading. See how to sign over a car title.
• Photograph both sides of the signed title.
• File your release of liability or transfer notice right away. In California, sellers must notify the DMV within 5 calendar days. Once the DMV receives the notice, liability for later parking and traffic violations and civil cases moves to the buyer.² In Texas, sellers file a vehicle transfer notification within 30 days of the sale.³ See release of liability.

3. Unlicensed buyers and curbstoners

How it works: Someone buys junk cars for cash without the licenses, bonds or insurance your state requires, then flips them. Tennessee’s consumer protection regulators describe curbstoning as buying and selling used cars without a license, insurance, bond or other required permits, often while posing as a private seller.⁴

Why it matters to you: An unlicensed buyer has every reason to leave your title open, skip the paperwork and disappear.

How to avoid it:

• Get the buyer’s business name, address and phone number on the bill of sale.
• Check licenses where your state lets you. Tennessee, for example, has a public license lookup for dealers.⁴ Many states license tow companies too. Texas requires tow companies, trucks and operators to be licensed and offers an online license search.⁵
• Keep a copy of the bill of sale. See bill of sale for a junk car.

4. Fake checks and overpayment

How it works: A buyer, often contacted online, pays with a check for more than the price and asks you to send back the difference. The money may show up in your account, but it can take the bank weeks to discover the check is fake. Then the bank takes the money back, and anything you sent the buyer is gone.⁶

The FTC’s advice for online car sellers:⁶

• Don’t accept a check for more than the selling price.
• Never send money to anyone who says they overpaid you by check.
• Consider an escrow or online payment service when you sell a car online.

For junk car sales: agree on the payment method before pickup, and don’t sign the title over or let the car go until you have payment you trust.

5. Upfront fees and unusual payment demands

How it works: A “buyer” asks you to pay first, for a title search, a towing deposit or a “processing fee,” before they pay you. Or they want you to pay with gift cards, wire transfers or cryptocurrency.

The FTC lists gift cards, wire transfers and cryptocurrency as payment methods scammers ask for, and warns never to pay someone who insists on crypto only.¹ In a normal junk car sale, money moves from the buyer to you. If anything moves the other way, ask in writing what it’s for before you agree.

6. Title and paperwork scams

• “We’ll handle your release of liability.” Maybe, but check. File it yourself, or ask for the confirmation. It protects you, not the buyer.
• Title “fixes” for a fee. If you’ve lost the title, get a duplicate from your state. See how to get a duplicate title.
• A car with a lien. If a lender still holds the title, the lien has to be paid off first. See selling a car with a lien.

Red flags at a glance

Red flag	What to do
Quote far above all others	Ask what it assumes, in writing
“Leave the buyer name blank”	Refuse. Write the buyer’s name in
Check for more than the price	Don’t accept it. Never send money back
Fee you must pay before you’re paid	Ask what it’s for in writing, or walk away
Pressure to decide on the spot	Take your time. You can refuse at pickup
No business name or address	Get it on the bill of sale, or use another buyer

If something went wrong

1. Write down everything: names, phone numbers, plate or truck number, texts and photos.
2. File your release of liability now, if you haven’t.
3. Report the scam at ReportFraud.ftc.gov.¹
4. Contact your state attorney general’s consumer office, and police if the car was taken without payment.

When you’re ready to sell, you can get an offer for your car and use the steps above to compare buyers. For what to do before pickup, see how to prepare a car for the junkyard.

References

1. Federal Trade Commission, “How To Avoid a Scam”, https://consumer.ftc.gov/articles/how-avoid-scam ↩ ↩² ↩³

2. California DMV, “Notice of Transfer and Release of Liability (NRL)”, https://www.dmv.ca.gov/portal/vehicle-registration/titles/title-transfers-and-changes/notice-of-transfer-and-release-of-liability-nrl/ ↩ ↩²

3. Texas Department of Motor Vehicles, “Buying or Selling a Vehicle”, https://www.txdmv.gov/motorists/buying-or-selling-a-vehicle ↩

4. Tennessee Department of Commerce & Insurance, “Consumer Alert: Be Wary of Unlicensed, Online Auto Sales”, May 2, 2022, https://www.tn.gov/commerce/news/2022/5/2/consumer-alert-be-wary-of-unlicensed-online-auto-sales.html ↩ ↩²

5. Texas Department of Licensing and Regulation, “Tow Trucks, Operators and Vehicle Storage Facilities”, https://www.tdlr.texas.gov/towing/towing.htm ↩

6. Federal Trade Commission, “Fake check scam targets online car sellers”, February 27, 2025, https://consumer.ftc.gov/consumer-alerts/2025/02/fake-check-scam-targets-online-car-sellers ↩ ↩²