Assume its a scam unless you can walk in somewhere locally and get cash before you hand over the keys.
That said, it may not be a scam.
But as a seller, do NOT take chances.
When I bought my first expensive car, $6500. I met a man at his credit union and I took a cashiers check from my local bank. They were able to call & confirm the check was valid, the sellers loan was paid off, they handed him the title & he signed it over to me. Then I took the title to my bank which they kept as security for the loan.
That was 32 years ago.
More scams nowdays. But lots of credit unions are members of shared co-op type deals. I am a member of one that's 4 miles away but I can deposit or get cash at a different one 2 miles away. I think they charge a small fee if you withdrawal cash from a different credit union. (Like an ATM might) I recall needing a few hundred for a car repair years ago and I was pressed for time. I didn't realize there was a fee, I found out when I checked my balance later. I usually do my best to avoid fees but in that instance, I would have paid it because I was pressed for time and the other credit union is only 2 miles farther but with traffic, that can be 20 minutes.