Lamborghini Talk banner

1 - 20 of 33 Posts

·
Registered
Joined
·
66 Posts
Discussion Starter #1
So I am in the process of buying from a private seller out of state and this is my first time not doing it through a dealership. I have already had a PPI done by a reputable shop and done my due diligence up until this point. I now have a certified check from my bank in hand and will be flying out to the seller to complete the transaction.

The questions I have are: what can I expect in terms of a private sale transaction and what is the correct/safest way to complete the transaction? The seller has clean title in hand and no lien against it.

For example: After seeing the car and inspecting it myself and everything checks out, do I first sign the check over to the seller and wait for it to clear before he signs the title over to me and releases the car? Or does the seller transfer the title over before the funds are transferred?

Any help would be much appreciated! :)
 

·
Registered
Joined
·
146 Posts
I usually ask them to meet me at my bank. Inspect the car, drive it, finalize a price and then walk into the bank and wire the money right to them. Ask them to get a wire transfer form from their bank, process takes about 5 minutes.
 

·
Registered
Joined
·
66 Posts
Discussion Starter #3
Normally I would use a wire transfer, but my bank gave me a certified check and does not directly wire funds when financing these types of purchases, or have any local branches where the seller is located.
 

·
Registered
Joined
·
146 Posts
Normally I would use a wire transfer, but my bank gave me a certified check and does not directly wire funds when financing these types of purchases, or have any local branches where the seller is located.
Ah gotcha, yea if they are financing then it is more difficult.

Meet him at his bank and have him deposit the funds and his bank can call yours and verify funds immediately.
 

·
Registered
Joined
·
1,082 Posts
Ah gotcha, yea if they are financing then it is more difficult.

Meet him at his bank and have him deposit the funds and his bank can call yours and verify funds immediately.
Best practice is wired funds and signing of title. Since financing above info is correct.
 

·
Super Moderator
Joined
·
3,211 Posts
The seller will hold the title until the check clears. Depending on the bank that the check is from, there are chances he will release title, but I doubt it. Figure around 2 weeks to get the title.
 

·
Registered
Joined
·
66 Posts
Discussion Starter #7
So there is little to no guarantee that the seller will sign over/release the title once the funds have cleared? I just want to be clear on the various risks I am subjecting myself to and possible ways to mitigate it by going this route.
 

·
Super Moderator
Joined
·
3,211 Posts
So there is little to no guarantee that the seller will sign over/release the title once the funds have cleared? I just want to be clear on the various risks I am subjecting myself to and possible ways to mitigate it by going this route.
Bill of sale is legally binding.
 

·
Registered
Joined
·
189 Posts
I have bought and sold a few cars in my life, LOL. Cash or wire only for either end of the deal. Here in Fl cashiers checks are worthless for large purchases. You can't even buy a house anymore with a cashiers check, too much fraud.

If you both bank at the same bank then a direct transfer. If it were me the car and title would not leave until I had cleared funds in my account.
 

·
Super Moderator
Joined
·
3,211 Posts
I have bought and sold a few cars in my life, LOL. Cash or wire only for either end of the deal. Here in Fl cashiers checks are worthless for large purchases. You can't even buy a house anymore with a cashiers check, too much fraud.

If you both bank at the same bank then a direct transfer. If it were me the car and title would not leave until I had cleared funds in my account.
Yes, typically a seller won’t even release the car. However, with a bank letter, they’ll be able to call and verify.
 

·
Registered
Joined
·
635 Posts
The first Gallardo I bought I went with cash, as bank checks are counterfeited far too often, and don’t guarantee anything. I didn’t want to stay out of state for days waiting for a check, so I literally hand bundles of cash I tucked away in my briefcase and met him at his bank to pay off the note.

The seller will need to make sure that the title is PHYSICALLY at the bank for you to purchase that day. This will also ensure there aren’t any outstanding balances for tolls/parking charges (common in CA and the buyer can’t have the title until those are paid). Banks don’t normally keep the title at their local branch and it takes days to get it to the right location.

You’re going to have to hope that the seller takes your cashier’s check for the funds. I always try to figure out who the seller banks with. If it’s a national bank, you can go there with your check and get the clearance time going before you travel, and then transfer or wire the money while at their bank.

Lots of ways to skin this cat, but I’d just make sure you can verify title, and that you have a form of funds that will allow him/her to accept the payment immediately.


Sent from my iPhone using Tapatalk
 

·
Registered
Joined
·
67 Posts
how do you verify title? i also have never bought or sold a car privately. some sort of a lien search? or will the bank teller verify somehow?
 

·
Registered
Joined
·
189 Posts
The biggest thing, in addition to the fraudulent cashiers checks out there, is the ability for the buyer to stop payment on them.

If they do then it becomes a civil matter and the seller is out the car and title. Wire transfer only. Cash in large amounts is also a problem generally.


Last vehicle I sold, buyer sent a small $500 deposit via paypal. I told him I would only accept wired funds for the balance. Before he left home he set it all up with his bank, then flew to inspect the car. Once he got there and did his due diligence and he was happy, he called his bank to send the wire. I had it in my account within 15 minutes and he took the car and paperwork.

I did have clear title in hand.

While we were waiting for the wire we went over the some additional items. I did offer to store the car for him if he needed transport.

Painless and everyone protected.
 

·
Registered
Joined
·
861 Posts
I got a fake cashiers check for something I was selling on CL, that was some time ago. It looks very real, but it's not. I knew when I got it was bogus.
I bought my car through wire transfer. Most of the time when I sold a car I sold it to someone I knew. When it was to a stranger I met them at their bank, made photo copies of title, drivers license, and the check. It makes a big difference when the bank hands you a bank check.
 

·
Registered
Joined
·
764 Posts
I did this with the last 2 cars I bought (lotus and raptor, so not cheap). My bank gave me cashiers checks. Flew out to seller, inspected car, then went to their bank (lotus did not have a lien, raptor did, but still went to the bank for verification in both instances). Their bank called mine, and everything was confirmed. Signed the lotus title over to me. The raptor had a lien so he signed the title over to his bank and the bank mailed a new title to my bank. Had signed bill of sale in both instances. My bank even gave me temp plates to put on for the drive back. Then a 40hr drive home with the raptor and a 12hr drive home with the lotus.
2 of the most enjoyable road trips I've ever done.
 

·
Registered
Joined
·
66 Posts
Discussion Starter #17
A lot of good information here! Thank you all for the help. It is much appreciated :)
 

·
Registered
Joined
·
190 Posts
Using a third party escrow is a safe solution, and usually only costs a couple hundred dollars. You pay the escrow the purchase price in whatever form you want. They receive the title from the seller. Once the check has cleared or wire funds verified the escrow releases the title to you and the funds to the seller. This makes dealing with title liens very easy because the escrow can directly pay the lienholder instead of the funds going to the seller first. It also can save you the road trip/miles if you'd want to buy the vehicle sight unseen and ship it. Any seller should be ok with using an escrow, and I'd even argue they should be the one to pay for it when selling private party. In any case it's an added layer of security.
 

·
Registered
Joined
·
1,264 Posts
Keep in mind, there is only an issue if one party decides to try and rob the other.... Does this happen very often?

I wired funds to the seller when I bought my Jalpa. The seller mailed the title and bill of sale after I told him the wire transfer was complete. For some reason, it took a couple hours to show up in the guys account. He freaked out!! He called me in a panic thinking I had cheated him in some way. Tricked him into sending the title without paying. I had to talk him down and reassure him. He called back an hour or two later to tell me the funds were there and everything was fine. I thought the guy was overreacting, but maybe scams happen more than I realize.
 
1 - 20 of 33 Posts
Top