Is this hurried effort to buy my car a scam?

Question

I recently bought a used car to replace my wife's 20-year old Honda. By the time I went to the dealer I ultimately purchased from, I had visited 3 dealerships and test drove a bunch of cars. The sale went smoothly, relatively quick as it was late in the day and I was ready by that time. During the sale, the dealer offered only $500 for our Honda as a trade-in, saying they'd junk it. An earlier dealer had offered $750 also likely to junk it. I decided to pass, and they agreed I could leave it in their parking lot and drive the new-to-me car home.

The next day, the salesperson (let's call them B) called and asked about buying the Honda. B offered $800 + all fees for a private sale, not involving their dealership/employer. Sounds great to us, saves us hassle of advertising and prepping the car (it needs a detail and minor repairs, we need a new copy of its title). B wanted it as a 'project car', acknowledging it's old but in relatively good shape for a 20yo Honda. Just the kind of buyer we hoped to sell it to.

Here's where I get uncertain. B asked if they could pay by Cash App or Zelle, saying they'd get paid next day and would be ready to buy it. We talked through the plan - they'd pay us $800+fees and mail us the old plates (since we live an hour from the dealership), we're getting a copy of our original title, then we'll mail DMV our plates and forms to transfer title to B. Sounds fine. Two days from first conversation, B has asked a few times for me to setup Cash App so they could pay us. I asked if they're in a rush and noted that we'd like to write up a basic agreement of sale, just laying out what we discussed over the phone. They're fine with a written agreement but admitted they're eager to get it done. Their explanation was that they don't like keeping a lot of money in that account of theirs when they get paid, since they have subscriptions like Amazon drawing money from it. I didn't hassle them and said I'd get an agreement written and Cash App setup by tomorrow, but their explanation doesn't make sense to me.

I'm scratching my head at why the rush to pay us, given it'll take at least a few weeks to transfer title. They already said they don't care about titling it anytime soon, they plan to keep it home over winter to work on it and eventually use it as a local commuter. They explained how other project cars they bought were just used at a race track and had no title. So for them, it seems like giving us cash opens the door to using the car. Note that this person already has access to the car and its keys, because their employer (the dealership I bought a used car from) agreed to keep the car in their lot for a week or so until I pick it up. For all we know, they're already driving it, but that'd be their employer's bad.

Why would B be in such a hurry to pay us? Should we have our guard up more for some kind of scam? The only reasonable explanation I can think of is that they see this Honda as worth more (we hoped to get $2-4k selling it ourselves). Maybe they want to close the great deal for them before we get smart to it. We're fine getting just $800 though, skipping the work of trying to get more for it. Are there other precautions we should take? We'll get a basic agreement in place (lay out the plan as stated above, state clearly the purchase is for the car as-is, sign and date), I'll transfer funds from Cash App to our bank ASAP, we'll do the DMV plate termination, update our insurance, title transfer and all that. I'm thinking if it was a scam, it'd just be this person revoking Cash App payment and basically stealing our car, but it's not worth very much and we know their name and employer. They don't strike me as untrustworthy but I barely know them.

Answer 1

If this is a scam, it's a hard one to pull off. They can't sell or even legally drive the car without some ownership (most states require proof of registration to be available upon request by law enforcement). There's a lot of legal things that need to be done. The two key ones are (may vary some by state)

1. A signed bill of sale. Can usually be a basic document you type up and print yourself
2. The car title, usually with your signature and to whom you are selling the car

Most likely B has another buyer lined up. Either someone saw it on the lot and B thinks they will buy it, or they are a car broker who looks for used cars. You said you could get $2k-4k for it. For an $800 sale, that's a potential $3200 profit. Not a bad deal for B if they can pull it off.

We're fine getting just $800 though, skipping the work of trying to get more for it.

There's the key for you: selling your own car is not easy. If you think $800 is a good deal, I'd play ball and mail the title after you get paid. They're making money by reselling it.

Answer 2

It sounds more like they are trying to close a bad deal before you realize it's a bad deal. That isn't what we usually mean when we say scam, though.

Or he may have some specific time or financial pressure to get this done in a hurry. But I don't see any way you can be certain of that. And if it is that urgent for him, you might want to try talking him into paying more, as the cost of expediting the transaction.

Answer 3

Is B the same person you've talked to in person at the dealership? Have you called him back at the number on his business card to confirm? Have you seen their salesperson license (should be visible in the dealership or shown to you) to confirm their identity?

Usually cash/zelle scams are based on intangible transfers, unidentified third parties, and advance payment premise, which in your case seems not to be the case. A car is a tangible thing that can be found, and the person you've dealt with is not anonymous internet imposter but a real person you can find as well. If you have a written contract with the person and can show the actual tangible asset in question then you'd have recourse even if the transfer is reversed or is otherwise found to be fraudulent.

Answer 4

This could be a scam, not against you but against the dealership. When you tried to trade in the car, the salesman falsely reports to his boss that the vehicle is worthless. He calls you the next day to buy it for what the dealership should have offered you for it. Now, he can resell/auction it and make whatever profit that the dealership would have made. Siphoning off business from your employer can be considered anything from an unethical conflict of interest to an illegal fraud, depending on the details. You're not doing anything wrong here, but it still might be something that you don't want to get involved with.

In addition, the salesman may have violated the law in contacting you. He got your phone number from company records and used it for his own personal uses. Even if that's not illegal in your locale, it's at least unethical and highly inappropriate. Imagine if he just showed up at your house or something, or kept calling you to ask for a date. Trying to buy your car is less creepy, but it's wrong for the same reasons. People get fired for that sort of thing.

For the reasons above, I would not do business with this guy. Instead, I'd report him to the dealership's manager and block the guy's number.