How to spot a fake car title or bill of sale before you pay
Most private sales are honest. The ones that aren't usually fail at the paperwork: a title that was altered, a title that belongs to someone other than the person selling, or a bill of sale typed up to cover a car with no real title at all. A few minutes of checking before money changes hands catches most of them.
Check the VIN in three places
The vehicle identification number on the title should match the VIN plate on the dashboard, visible through the windshield, and the label on the driver's door jamb. All three should match each other exactly. Scratches, glue, or a replaced label around either one are reasons to stop. See VIN and odometer checks.
Match the person to the paper
Ask to see the seller's photo ID and compare it with the owner name on the front of the title. If they don't match, you may be dealing with title jumping, where someone resells a car without ever titling it in their name, or with a car that isn't theirs to sell. See title jumping and unlicensed dealers.
Also look for a lienholder on the title. A listed lender with no lien release means the car may still be collateral for someone else's loan. See buying a car with a loan on it.
Look closely at the title itself
- Alterations. Erased or overwritten mileage, names, or dates. Most states reject altered titles anyway.
- Security features. State titles are printed on security paper, often with watermarks or special printing. Compare it with an image from your state's motor vehicle website if you can.
- A very recent duplicate. A duplicate title issued days before the sale isn't proof of anything wrong, but ask why.
- Brands. Salvage, rebuilt, flood, or not-actual-mileage brands change the car's value. See salvage and branded titles.
Check the history
A vehicle history report that draws on the federal title database can show past brands even after a car has been retitled in another state to hide them. Many state motor vehicle agencies also offer a title status lookup. If the history and the paper title disagree, believe the history. See when the odometer does not match the history report.
What a bill of sale can and cannot prove
A bill of sale records the deal: price, date, and condition. For a titled car, it doesn't prove the seller owned the car. Anyone can type one up. A seller who says the title is "coming later" and offers a bill of sale instead is asking you to take the biggest risk in the transaction. See when the seller has no title and safe ways to pay.