You want to sell your car and post an ad online. Soon afterwards, a representative from a financing company calls you saying that they have a few prospective customers for your car.
He also tells you that his company is financing customers who can’t qualify anywhere else, as long as the clients buy the cars from their listings and at the asking price.
This makes you happy because you know you can sell your car through this company in the next few days – and for the full asking price!
The only thing the rep says you need to do now is to pay $500 up front for advanced advertising --but no worries, the car’s price will be $500 higher on the listing, so you’ll get your money back. This way, everybody will be happy: the buyer has a new car, the financing company got a deal, and you sold your car for the initial asking price, which is guaranteed.
How to avoid: don’t do it; unless the deal works the other way and they pay you an initial deposit of $500!