Top Ways to Protect Yourself When Selling a Car Privately?

On February 25, 2026 By newsroom Topic: Automotive

Selling your car privately can maximize profits, but safety and security are critical. Follow these steps to ensure a smooth and secure transaction.

1. Screen Callers Thoroughly

Use Kelley Blue Book’s Private Seller Exchange for added security.
Insist on a phone conversation with serious buyers before scheduling a test drive.
Ask questions about their needs, financing plans, and readiness to purchase.
Be cautious with buyers offering to purchase sight unseen; verify their legitimacy.

2. Take Precautions with the Test Drive

Meet in safe, public places like police station parking lots or near banks.
Bring a friend or family member for added safety.
Ask to see the buyer’s driver’s license before handing over keys.
Plan a short, populated test drive route; accompany the buyer during the drive.

3. Ensure a Safe Transaction

Refuse unusual requests (e.g., driving the buyer elsewhere to arrange payments).
Discuss payment methods in advance:
Safe options: cashier’s checks, wire transfers, or secure apps like Zelle or PayPal.
Avoid uncertified checks and unfamiliar escrow services.
Use Kelley Blue Book’s Private Seller Exchange for secure payments and title transfer.

4. Maintain a Paper Trail

Complete all required title transfer paperwork based on your state’s regulations.
Provide a bill of sale and keep a copy for your records.
Submit a Release of Liability form to your state’s DMV to avoid future liabilities.
Remove your license plates before the buyer drives the car away.

5. Block Out Personal Information

Cross out personal details (e.g., address, SSN) on service records using a black marker.
Remove contracts, credit applications, or sensitive documents from the glove box or owner’s manual.

6. Complete the Title Transfer

If using Private Seller Exchange, the service will handle the title transfer securely.
If not:
Sign the title over to the buyer.
Ensure the buyer registers the car and pays transfer fees, including taxes.
In some states, provide the buyer with a smog check or inspection certificate.
Notify your county tax assessor of the sale to protect yourself further.

7. Avoid Scams and Fraud

Stay vigilant and report suspicious activity to Kelley Blue Book and law enforcement.
Red flags to watch for:
Requests for personal/financial info over email.
Fake escrow services claiming affiliation with KBB.com or TRUSTe.
Payments that exceed the car's price, asking you to "refund the excess."
Verify escrow services with state regulators before using them.

Tips to Spot a Scam:
- Avoid links in emails; manually search websites instead.
- Check for official communication on KBB.com before participating in contests or sweepstakes.
- Use Better Business Bureau to verify third-party services.

Remember:

Selling a car privately can yield greater profits than trading it in, but it requires preparation and caution. By following these steps, you’ll protect yourself while ensuring a successful transaction. For additional resources, visit KBB.com or contact their Fraud Prevention Team at 1-877-210-5209.

Stay smart, stay safe, and happy selling!