Craigslist Car Scams: Complete Protection Guide

For a complete guide to buying cars safely on Craigslist, see our Craigslist Car Buying Guide 2025.

How Bad Is the Craigslist Car Scam Problem?

Approximately 20-25% of suspiciously priced Craigslist car listings are scams - nearly double the rate on Facebook Marketplace. The average victim loses $4,800, and recovery rates are under 3%. Unlike Facebook where scammers risk profile exposure, Craigslist's anonymous nature provides cover for fraudsters.

The good news: scams follow predictable patterns. Once you know what to look for, they're relatively easy to spot and avoid. This guide covers every major scam type and exactly how to protect yourself.

The 5 Most Common Craigslist Car Scams

1. Advance Payment Scam (35% of scams)

How it works: Scammer posts an attractive vehicle at a compelling price. When you inquire, they request a deposit to “hold” the car before you can view it. Payment is requested via wire transfer, gift cards, or cryptocurrency. Once sent, the money and scammer disappear.

2. Out-of-Town Seller Scam (28% of scams)

How it works: Scammer claims they can't meet in person because they're deployed overseas, recently relocated, or have a sob story. They offer to ship the car using a “trusted” service. The vehicle doesn't exist - you pay shipping/escrow fees to a fraudulent service.

Common stories:

• “I'm in the military stationed overseas”
• “I just moved for work, left the car with a friend”
• “My deceased spouse's vehicle, too painful to deal with in person”
• “Divorce situation, need it gone quickly”

3. Fake Escrow Scam (18% of scams)

How it works: After some communication, the “seller” suggests using an escrow service for buyer protection. They provide a link to what appears to be a legitimate escrow site. It's fake - your payment goes directly to scammers.

Warning signs:

• Escrow site you've never heard of
• Link sent via email (not found independently)
• Website recently created or looks unprofessional
• Unusual payment methods accepted

4. Title Fraud / Title Washing (12% of scams)

How it works: Seller has a vehicle with salvage, rebuilt, or problematic title. They “wash” the title through states with lax reporting to make it appear clean. You pay fair market price for what turns out to be a salvage vehicle worth far less.

Protection: Always run a comprehensive VIN check. Look for multiple state transfers in short timeframes and any gaps in ownership history.

5. Overpayment Scam (7% of scams)

How it works: When you're selling (not buying), a “buyer” sends a check or money order for more than the asking price. They ask you to refund the difference. Their original payment bounces after you've already sent real money.

Rule: Never refund “overpayments.” If someone sends too much, have them cancel and resend the correct amount.

Red Flags: How to Spot a Scam Listing

Price Red Flags

• Price 30%+ below market value without explanation
• “Must sell immediately” urgency
• Price too round or weird (exactly $5,000 or $4,999)

Listing Quality Red Flags

• Stock photos or single low-quality image
• Generic description (“runs great, no problems”)
• Description copy-pasted from another listing
• Conflicting information (year/mileage don't match photos)

Communication Red Flags

• Won't provide phone number
• Only responds via email
• Generic responses that don't answer your questions
• Pressure to act quickly or someone else will buy
• Requests to move communication off Craigslist

Transaction Red Flags

• Any request for payment before viewing
• Wire transfer, gift cards, or crypto payment
• Shipping offers (especially with third-party services)
• Won't meet at police station or public place
• Excuses to avoid in-person meeting

How to Verify a Craigslist Seller

Step 1: Request a Phone Call

Scammers avoid phone conversations because they reveal more than text. Request a phone call before meeting. If they refuse or only offer text/email, be very suspicious.

Step 2: Ask Specific Questions

A real owner will know:

• Why they're selling
• Service history and recent repairs
• How long they've owned the car
• Specific details about features and condition

Scammers give vague, generic answers or copy from the listing.

Step 3: Verify the VIN

Before meeting, ask for the VIN and run a check. Cross-reference: does the VIN match the vehicle description? Are there red flags in the history?

Step 4: Meet Safely

• Police station safe exchange zones (many departments offer these)
• Busy public parking lots during daylight
• Never meet at remote locations or after dark
• Bring someone with you

What to Do If You've Been Scammed

Immediate Steps

1. Document everything: Screenshots of listing, all communications, payment records
2. Report to Craigslist: Flag the listing immediately
3. Contact your bank: If you paid by card, initiate chargeback
4. File police report: Required for any potential recovery

Federal Reports

• FTC: ReportFraud.ftc.gov
• FBI IC3: ic3.gov (Internet Crime Complaint Center)
• State Attorney General: Consumer protection division