jrmckinley

I am selling my "fun car" and have someone who wants to buy it from another state. For those who have either bought or sold a car from another state (private party), what was the process? He's suggesting we use a site like www.escrot.com which verifies he has placed the funds into the account and then I ship him the car. I am new to this as in the past I have just sold and bought my cars locally - can anyone provide pointers? I'm looking to make this as secure and convenient as possible for both of us. I hadn't given much thought to the process - he is handling shipping but I don't know what to do or expect on the financial side of things. I appreciate any help and please feel free to provide specific details. The part that I'm wondering about is the "acceptance" of the car by him which would release the funds to me. I feel like I need advice on how to get things documented and in writing about what defines the acceptance, what happens if he decides he doesn't want the car, etc.

I don't expect him to just send me a cashier's check and hope that I end up sending him the car, so I understand he needs protection as well.

Thanks!

Byprodrive

iTrader: (1)

Paypal works well but is expensive, I"m not familiar with any other payment sites. Since he is arranging the shipping the shipper will inspect the car for him. I would not allow the car to be loaded on the truck until you are confident you have received verified funds. Lots of counterfit "certified" checks out there!

Aron9000

How far away is the seller from you???? I've bought my last 4 cars from out of state, but I've always flied in and inspected the car. Then we went to the bank, gave the seller 100 dollar bills, signed the title over there, and drove it home.

jrmckinley

He lives in WI and I live in FL, so quite a distance. I don't mind the shipping aspect of the deal, but just slightly concerned about the logistics of his "acceptance" of the car which ultimately gives me access to the money. I don't know enough about the process to know what prevents him from keeping the car after saying he doesn't "accept" the car. He'd have the car and I'd have no money. Hoping a few folks on here have gone through this where they bought a car and had it shipped instead of driving it back.

Aron9000

Can you keep the title until the payment is secure? Then Fedex overnight it to him once the money is clear.

jrmckinley

I am 99% certain that's how it would work. To my understanding, the process is:
1) Buyer and seller agree on price
2) Buyer and seller agree on terms (shipping method, acceptance period, etc)
3) Buyer deposits money into the Escrow account. Seller gets notified that funds are verified and in the account.
4) Seller ships the item, provides Escrow site with tracking information.
5) Once item arrives, buyer has to "accept" the item within the already-agreed-upon timeframe. If they don't officially "reject" it within that timeframe, the $ is released to seller.
6) Seller receives funding and issues title

I'm hoping to discuss in detail with the potential buyer over the phone in the next couple of days. I need legal protection if he chooses not to accept it (that he will pay to ship it back, the method of shipping has to be agreed upon, type of shipping truck, do I get a "fee" as a % of the deal for time of not being able to show the car, etc). It would be much easier if someone local would buy the car..!

Aron9000

What are you trying to sell anyways, might be able to give you advice on that.

jrmckinley

2010 Audi S5. It has the 4.2L V8 with 52k miles and 6 speed manual. It's a pretty desirable car for a specific audience - Audi came out with the turbo V6 (in '13 I believe), so some people prefer that engine while others prefer the V8 and will go hunting for it. All of the people who expressed interest in it have been from out of state, so they're using AutoTrader to search for a specific age range and doing a national search.

LS430FL

I can't offer much help here but I will tell you that about two years ago I was selling a car through eBay. The guy tried to fool me after stringing me along with payment for two weeks. He sent me a chase bank Wire transfer receipt and said it should be a day or so before it shows up in my account. Trying to be safe I called chase bank to confirm. They couldn't locate the transfer based on the confirmation ID. After sending a scanned copy to them they immediately told me it was fake and they contacted the FBI! Moral of the story, please make sure you verify any type of payment before you release anything. In todays world you just never know.

I wonder if you did it through a bank that both of you bank at. Perhaps the bank manager could handle the transaction for you? They could confirm and secure the money in the bank from the buyer and then you give them the title and for a fee they send it to the buyer? I don't know if they do that but it's worth asking.

As far as acceptance I think that is on him. "Caveat Emptor" as far as I'm concerned. He is the one that is opting to buy out of state site unseen. Once that car is on the truck and damage/trucker inspection is recorded and signed off on, it should be on him unless there is something that is materially different than what was described to him in a written description of the car. Not that you would do it, but anything that you tell him about the car is expressed anyway. So if for some reason the car wasn't like your written or expressed description in a material way he would have recourse against you no matter what. If it gets there and he doesn't like the looks of the car or something that is not material and thats on him for not seeing in person or test driving it. That is how I would structure the deal. I personally wouldn't buy a car from any private seller without seeing it but maybe that is just me. A large dealer is different because they have a lot to loose. You could even make out a contract that says all this or get a form online and change to your liking to include acceptance upon being loaded on truck. Could even get it notarized by him so that you know someone verified that he signed it in their presence.

s4play

iTrader: (2)

Ok I can give you some input as I have bought MANY cars long distance, some sight un-seen, others I have flown out to check out, etc.

So the VERY FIRST RULE is trust your "gut" instinct. Don't get too excited and let emotions get in the way.

I have NEVER USED ANY ESCROW SERVICE BECAUSE IT SHOULD NOT COME TO THAT. Almost any long distance transaction requires some level of trust from the buyer and seller because the seller will not give up a car unless funds have cleared and a buyer may not want to send money first since even a wire transfer takes a day to process.

Given both of you are long distance - here's what I would do as you are seller and he is the buyer right?

Buyer:

1) Ask the buyer what he needs to ensure the deal is comfortable for him? Does he want a walk-around video? Does he want to do a dealer PPI (pre-purchase) inspection on his dime?

2) There is absolutely no refunds on the car once you ship the car to him so I highly suggest you make sure the buyer wants this car. If he is un-sure it's up to him to fly over and inspect the car. If he decides to buy it sight un-seen that is his issue not yours.

3) All used cars have risks and there is no guarantee for anything


Seller: (you OP)

1) Do not let the car leave without funds CLEARED in your bank.

2) Do not accept a cashier's check and immediately let the car go as buyer can still cancel a cashier's check (Yes I'm 100% positive on this from past experience)

3) If he ops to do a wire transfer, get a copy of the actual wire transfer paperwork from his bank and ensure funds have cleared (usually takes one day)

4) Sign a bill of sale from your local DMV and have it notarized

5) Tell him you will overnight the title and 2nd set of keys once the payment has cleared, at that point the car is his.


When dealing with out of state buyers, do the SAME thing as if the buyer was local meaning car does not leave your hands along with title until you get payment. Buying out of state has risks so again back to my first rule and point, there must be some level of trust so both of you need to talk things out ahead of time to make sure there are realistic expectations on both sides and put yourself in each other's shoes.

Gluck

s4play

iTrader: (2)

Possession of the car is 90% ownership in most states, even if you kept the title as leverage, it's of little use in my opinion.

As the seller, YOU NEVER LET THE CAR LEAVE WITHOUT 100% PROOF OF PAYMENT. To trust some 3rd party escrow IMO is plain stupid.

Think of it this way, if you were to go buy a car from another local private party, do you think that seller would say, sure hold my money and I have to wait till you accept the car before I get payment? HECK NO, all private party sales are FINAL meaning I get payment in my bank or cold hard cash before you take the car.

I saw someone mention Paypal - DO NOT USE PAYPAL either as then you are trusting the payment to Paypal which is known to side with the buyer, one dispute and your money is gone.

A private party sale must have at the very least:

a) Bill of sale notarized by both parties

b) Funds confirmed in bank before you let the car go


I know if I was selling my car for example, no buyer will get anything till the funds cleared my bank, anything less than that and you are asking for trouble. If a buyer wants 100% security, have him fly over to look at the car and do the deal with you locally. Then it's up to him to arrange transport (of course you can assist at that point) but the car is technically the buyers.

jrmckinley

S4Play - very helpful info, thank you. I sent you a PM with 2 more questions. Thanks,

Vitveet

The last few guys gave good advice. The way you were about to go about it was about to get you burnt badly. If the buyer wants the car bad enough, hop in a rental, drive to you, drive the car back (or use airplanes). If the car is that desirable, be patient and someone will be willing to come give cash/etc in person.
i bought my Is300 from a guy in MD and I'm in NC (about 5 hrs). He drove the car down, I looked it over (along with the bank manager at my bank, while in the bank parking lot). Bank approved the condition of the car, decided the price was more than fair, then cut him a check and he was on his way. I spent the next hr getting all paperwork/loan work done at the bank. This was 11 years ago and I wanted it because it was a well conditioned, rare car (02 5sp manual, silver with black interior....Still to this day almost impossible to find, especially in decent shape). Still have the car and loving it like I did day 1 11 years ago.
My ISF I want 12 hrs away to buy it ( but from a dealership, so much easier and much more piece of mind). But unless otherwise agreed, buyer travels to the car.

V.

s4play

iTrader: (2)

Glad to be of help - good luck