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First Private Purchase

5K views 32 replies 16 participants last post by  Lee T 
#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! :)
 
#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.
 
#10 ·
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.
 
#12 · (Edited)
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.


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#14 · (Edited)
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.
 
#15 ·
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.
 
#16 · (Edited)
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.
 
#18 ·
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.
 
#20 ·
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.
 
#21 ·
Everyone s concern from above was with fraudulent checks and such. To me as a buyer handing over money and not getting a title is what always kept me skeptical.

When making an offer I first ask if title is in hand.

If it’s in the sellers possession it makes handing the funds over easier.

If banks hold the title they won’t release title until car is paid off. Depending on balance. I’ll ask seller if I give a deposit and they have funds to pay off loan and we have a bill of sale that is notarized with balance paid and balance due.

Always have a notarized document to protect both parties. Transactions where money is being transferred try to schedule at a bank for both parties safety.
 
#23 ·
I don’t have a problem going for a title from a bank. If you’re both at the bank together, you’ll know if the amount you’re paying will pay off the title before you provide payment. They do this all the time.


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#22 ·
In my professional business I always use wires and title / escrow companies. Personally I have used title and escrow agents a number of times for vehicles including boats and find this peace of mind is well worth the few fees that they charge especially for higher value purchases. Most Lamborghini owners are above board but you will always find that one schmuck out there that gives the entire used car buying process a bad name.
 
#24 ·
As everyone has pointed out fraud is rampant . There are scammers everyday trying to sell and buy with bogus goods Fake cashiers checks are used regularly.
An easy scam for a seller is to rent a lambo, make a fake title and sell it multiple times. Another scam is to take a car, make lots of copies of the title and sell it multiple times over a weekend. Especially if a transport is involved. The seller will come up with a reason the car should not be driven home and just call a friend who is the bogus transport that would even talk to you and send you a quote. (Via disposable cell phone of course) Any good scammer will look the part. Probably have a house rented to look wealthy and be wearing jewelry, designer clothes etc. Buyers see the big house and polished seller and assume all is good. Several ideas here are viable. 1. Use an escrow title agent. 2. Run a background check on the Seller/Buyer
3.Go to the local DMV office and check the title.
4 Open a bank account at the bank where the seller banks and put the funds there. Conduct the transfer at the bank.
5. Get a cashiers check made out to yourself from a bank that also has a branch in that location. Cash it at the bank and give to the seller.
Check the registration on the car and see who is the registered owner. (Be careful of docs in the glovebox) a smart con man will make a fake registration out to themselves
Do not carry large amounts of cash through airports. If an agency suspects you are transporting drug money, they can seize all the cash and not return it until an investigation is completed. (up to 6 months)
I use background checks a lot. It is amazing how many seemingly nice people have criminal backgrounds. This will also show if the seller lives at the address they are showing the car.
 
#28 · (Edited)
Thanks for the kind words. I just hate to see people ripped off. Most people assume that people are who they present themselves to be. In reality it often tends to be the opposite. As a builder , I saw many peoples financial information. The ironic part was that the best dressed apparently most successful were usually the least. The people coming in in old jeans, casual shirts and driving average cars were the ones pulling out a checkbook and paying half a million for a house. Con men and scammers play on peoples fear and greed. Imagine a really hot girl around 30 selling her Husbands aventador for 100K to the first person with the cash. She caught him in bed with her best friend on hidden camera which she had installed after she found lipstick on his collar. He is out of town till Monday. She will even try to show you the video. She laughs and says "just wait till he gets back and finds his car sold. I am going to put a tv with a video player in its parking place along with the copy of the title transfer" That will teach the MF a lesson. You are of course wanting to help the damsel in distress (and maybe more) and happily give her the 100K for the car. Sorry you cant drive it because all the tires are flat. She punctured all four when she saw the video. She was going to set the car on fire but she decided to sell it and take a cruise around the world with the money. The title is in her name because she bought it for him for their ten year anniversary. (She has a trust fund) Now think really, If you pulled up to a Million dollar house, heard the story and were looking at the car which has four flat tires but runs perfect. Would you buy it? How many times can she pull the scam before people start to question the transport ?
Sounds like a good movie plot but things like this really happen. I caught a guy trying to sell a SV Murcie cheap on autotrader that a year model before they made them. He was probably just getting people to wire deposits to him. No telling how much he collected. In Business it is always wise to assume someone might be trying to cheat you and act accordingly. Honest competent sellers(or buyers) will not be offended that you want to check them out. Scammers will. Unfortunately , in the real world there are a lot of people trying to figure ways to part you from your money. We are often blinded by greed , excitement and other powerful emotions. Use logic and reason. Your money will stay where it belongs. Lee
 
#29 ·
I fully agree with Lee’s point of view. I trust people generally until it comes to any business transaction. The only thing I add, is that I always TREAT the other party with respect and trust. I’ve had buyers treat me like I was a scammer and that put me off big time. You can be diligent and secure without being a jerk.


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#30 ·
I totally agree. I assume and treat everyone as if they are honest and trustworthy. However if their behavior is suspicious or they react unusually to certain questions I will look much harder. Also if what they are offering or proposing seems too good to be true, it probably is or at least has some hidden flaw. Lee
 
#31 ·
My car is for sale right now. I've got a guy trying to send me 5k cashier's check as deposit and have his guy with a trailer pick up the car. Mind you I have not spoken to him. He has not asked much details about the car or any financing details. I've ignored him. Google search doesn't bring up anything. Sellers can get scammed too
 
#33 ·
Watch out for the guy with the 5 k cashiers check. That sounds like a scam. I get calls like that all the time when selling vehicles or equipment. They are usually not interested in details. How did he propose to pay the rest. (Another cashiers check probably) See if he is willing to wire you the money. Don't give him your regular account. Set up a small account at your bank not linked to your regular account. Let him wire like 1K as a show of good faith and give him 5 days to bring the rest of the cash or come for the car, do the wire and you release when funds clear. The background check is also good. Lee
 
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