How many times have I warned listeners not to sell anything of value on Facebook Marketplace or Craigslist? It is a very risky proposition as a Knox County, Tenn., man can confirm. He says he is out nearly $93,000 after selling his 2025 Chevrolet Silverado in what he believed was a legitimate private transaction, only to learn the loan on the truck had not actually been paid off.
Michael Phillips of Powell listed his pickup for sale on Facebook Marketplace and was contacted by a buyer from Georgia. According to Phillips, the buyer suggested arranging a three-way phone call with his lender, GM Financial, to verify the payoff amount and clear the title before completing the sale.
Phillips said that during the call he was told the balance on his loan was zero. Believing the debt had been satisfied, he signed over the title and released the truck to the buyer.
Shortly after the vehicle was picked up, Phillips discovered the payoff had not been completed. Funds that had appeared to cover the balance were later reversed, leaving him still responsible for the loan even though he no longer had possession of the truck.
Phillips said he would not have released the vehicle had he not been told the balance was paid in full. He maintains he relied on the information provided during the call with the lender before finalizing the transaction.
GM Financial later informed him that because the transaction was a private sale and not handled through a dealership, the title transfer could not be finalized in the manner Phillips believed. The earlier confirmation of a zero balance was reversed, and Phillips remains obligated on the loan.
The Knox County Sheriff’s Office has taken a report and is investigating the incident. Authorities have indicated that because Phillips voluntarily transferred the vehicle and title, the case does not meet the standard definition of a stolen vehicle, complicating recovery efforts.
Phillips attempted to track the Silverado using vehicle data and traveled to the Atlanta area after tracing its last known location. By the time he arrived, the truck was gone. Investigators later determined the buyer had used a false identity in the transaction, according to Phillips and local reports.
At last account, Phillips estimates his loss at approximately $93,000, reflecting the value of the truck and the remaining loan obligation. He is still responsible for payments on the vehicle despite no longer having it.
The case underscores growing concerns among law enforcement and consumer advocates about scams involving private vehicle sales, particularly when financed vehicles are involved. In some schemes, fraudulent payments or falsified confirmations are used to convince sellers that loans have been satisfied. Once the seller releases the vehicle and title, the payment is reversed or determined to be invalid.
Private online marketplaces have made it easier for buyers and sellers to connect across state lines, but they have also created opportunities for increasingly sophisticated fraud. Scammers may use spoofed phone numbers, falsified banking documentation or staged calls to create the appearance of legitimacy.
Consumer advocates recommend that sellers contact lenders directly using verified phone numbers from official statements or websites rather than relying on numbers provided by buyers. They also advise waiting until funds have fully cleared and are irrevocably deposited before releasing a vehicle or title.
Law enforcement officials say private sellers should exercise caution when dealing with financed vehicles and unfamiliar buyers, especially in high-dollar transactions. Conducting transactions at a bank, verifying identification in person and confirming payoff status independently are among the recommended precautions.
Phillips said he believed he had taken appropriate steps before turning over the truck. Instead, he now finds himself without the vehicle and still responsible for the debt.
The investigation remains ongoing. Authorities have encouraged anyone with information related to the case to contact the Knox County Sheriff’s Office.
Photo: Editorial Use Only. mariakray/Shutterstock.com.