More than half of Finns have experience of buying from or selling a car to a private party. The most common reason is that a private seller has a suitable car for sale.

According to a survey conducted by OP Financial Group in 2023, other reasons for buying from a private party include lower costs and that the seller is a friend or family member.  

On the other hand, the sale process worries many potential buyers. Nearly one in ten people who have bought from or sold a car to a private party have been cheated or misled in some way. 

In the most common type of scam, the condition of the car does not match the seller's promises.

"In our survey, we also learned of cases where it turned out that the seller was not the real owner of the car, the buyer had failed to register the car in their name or pay the agreed price, or the car insurance payments were in arrears. In one case, a party attempted to present fraudulent receipts of payment," lists Kristian Hiljander, Head of Motor Vehicle Insurance at Pohjola Insurance. 

How should the condition of the car be inspected before a sale?

The most common causes for concern in car sales between private consumers are the condition and damage history of the car and whether the other party can be trusted. To confirm the condition of the car, it's advisable to go over at least the following issues: 

  • Before buying, carefully check the chassis, engine, damage caused in previous accidents and service history, if one is available.  
  • Check the car's registration information and that vehicle taxes have been paid. 
  • Check that the car has passed the scheduled inspection.  
  • Check that the car has not been decommissioned (unless you are purposefully buying a decommissioned vehicle). 
  • During the test drive: Listen to the engine at different speeds. Test the brakes and gears. Check that the indicator lights and electronic systems are working. 

How to avoid getting scammed in a car deal?

When buying or selling a car, people are also worried about the division of duties between the buyer and seller, whether the sale price is paid as agreed and how the transfer of ownership is confirmed.  

To ease these concerns, a free service is available for car transactions between consumers. In the service, the buyer and seller can take care of all matters related to the deal, including registration and payment.

Thanks to the service, situations where the seller accepts the money but does not transfer the ownership of the car to the buyer are avoided. 

In the OP Smart Contracts service‍, the parties to the car sale between consumers identify themselves using strong identification. The service retrieves the details of the car and owner from Traficom, preventing anyone from attempting to sell a car they do not own.  

In the service, it is also possible to use a pre-filled deed of sale, apply for financing for the car and pay the sale price. The payment will be held in OP’s customer asset account until the seller has made a transfer notification for the car. The seller can submit the transfer notification in the service. In the same service, the buyer can also take out insurance for the car and take care of the registration.  

"The OP Smart Contracts service tackles issues related to the practicalities of car sales and ensures that the transaction is transparent, easy and secure for both parties. Everything is taken care of at the right time and place," says Hiljander. 

The service can be used for buying and selling passenger cars, vans, motorcycles, campervans and snowmobiles.

The OP Smart Contracts service is provided by Pivo Wallet Oy. The financing is granted by OP Corporate Bank plc, and the insurance is issued by Pohjola Insurance Ltd.