Payment & Paperwork
Avoiding Private Sale Scams
Fake bank drafts, overpayment tricks, e-transfer reversals, curbsiders — the common car-selling scams and how to dodge them.
By Samir OsmanPublished June 22, 2026Updated June 22, 2026
Key takeaways
- A genuine buyer pays the exact agreed amount, so never refund a claimed overpayment, it is one of the most common car-selling scams.
- Verify any bank draft or cashier's cheque directly with the issuing bank's branch before you hand over keys or sign over the registration, fakes can look perfect.
- Treat Interac e-transfers as reversible until the funds fully settle, a transfer can appear received and still be clawed back.
- Never ship a vehicle or release it before guaranteed funds are confirmed, especially for out-of-province or out-of-country buyers who never inspect the car.
- Watch for curbsiders, unlicensed dealers posing as private sellers, and when in doubt sell to an established, verified buyer instead of a stranger.
If you sell privately, you become the target. Car-selling scams are common and convincing. Here are the ones to watch for.
Common scams
- Fake or altered bank drafts and cashier's cheques
- Overpayment: they "accidentally" pay too much and ask for a refund of the difference
- E-transfer reversals — a transfer that looks received but gets clawed back
- "Shipping agent" and out-of-country buyers who never inspect the car
- Curbsiders: unlicensed dealers posing as private sellers (a buying-side risk too)
How to protect yourself
- Never refund an overpayment — a genuine buyer pays the agreed amount
- Verify any draft with the issuing bank before handing over the keys
- Don't ship a car or release it before guaranteed funds are in hand
- When in doubt, sell to an established, verified buyer instead of a stranger
From our experience: As an Edmonton-based buyer, we handle vehicle payments and Alberta registry ownership transfers as routine, day-to-day work, so we know firsthand which payment red flags tend to show up in private sales here.
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Frequently asked questions
- What is the safest way to get paid when selling a car privately in Alberta?
- Cash verified at your own bank, or a bank draft confirmed directly with the issuing bank's branch, are the most reliable options. Handle payment during business hours so you can confirm the funds are real before you sign the bill of sale and hand over the signed registration documents and keys. Don't release the vehicle on the strength of a screenshot, a mailed cheque, or a promise of payment. Remember that in Alberta the buyer completes the ownership transfer at a registry agent, and your licence plates stay with you.
- How can I tell if a bank draft or cashier's cheque is fake?
- You usually can't tell by looking, modern counterfeits copy logos, watermarks, and security features convincingly. Call or visit the issuing bank's branch directly using a number you look up yourself, not a number printed on the draft, and ask them to confirm it was issued and is valid. Don't rely on your own bank simply making the funds available, because provisional credit is not the same as the draft being genuine and cleared. A real, verified bank draft is guaranteed funds, the danger is a forged one.
- Can an Interac e-transfer be reversed after I receive it?
- Yes. In certain situations a transfer can be reversed or clawed back even after it appears in your account, for example if it was funded fraudulently or sent from a compromised account. Wait until the money is fully settled in your account before handing over the car, and be wary of any buyer who sends extra and asks for part of it back. For a large amount, a bank draft verified with the issuing bank is generally safer than an e-transfer.
- What is a curbsider and why should I care when selling my car?
- A curbsider is an unlicensed dealer who poses as an ordinary private seller, often flipping vehicles that may have hidden accident history, odometer issues, or undisclosed liens. As a seller, you may encounter curbsiders trying to buy cheap and quickly resell, and dealing with them can expose you to disputes later. Sticking to verified, established buyers helps you avoid these unlicensed operators entirely. Always use a written bill of sale with the date, price, both names, the VIN, and the odometer reading.