Long distance purchase

billwagnon · 03-12-2002, 05:32 PM

I may be buying a car long-distance this week.

My question is - how does this work?

The title is held by the seller's credit union which should make things easier.

I assume we use FedEx, but how do I make sure I get the title when the title holder gets the cashiers check? Do I have to use some kind of escrow arrangement?

dean · 03-12-2002, 05:59 PM

You should contact the CU. They will send the title when they get the cash.
Good luck
Dean

gadams · 03-12-2002, 06:05 PM

I recently had a long distance purchase. I used escrow.com The service was simple to use and reasonably priced. I highly recommend using an escrow service if for nothing else it will provide you piece of mind.

R22tech · R22tech's Garage

What you need to do to FULLY protect yourself and the guy you are buying from is go to your bank and have them give you a loan for the car. They will have your seller sign documents telling the lien holder to release the title to your bank. Your bank will pay the lien holder directly. You pay the seller his equity directly . This way, he is assured his loan will be paid off And so are you! Your bank will be efficient at getting that title, and you could just pay off the vehicle when your bank receives the title. Plus, it eliminates all the work both of you will have to do to get the deal done correctly. I just did this, I was the seller, and it worked out great for both of us. All of the documents were done via fax.

billwagnon · 03-13-2002, 05:03 AM

The loan idea sounds good, but my stupid credit union requires the buyer, seller and title to be at the credit union when they give you a loan of "their" money.

Bought a minivan in November, that's how I found that out!

dean · 03-13-2002, 04:54 PM

Use another bank or get a home equity line of credit if you can.
I'd tell your stupid CU to screw
Dean

nostatic · nostatic's Garage

my credit union was the same way. I ended up going with peoplefirst.com. They were great to deal with, and gave me a better rate than my CU. They also will finance 100% of the purchase price, and don't depend on the KBB values (so buying older p-cars is easy).

The only niggle is a distance purchase, as their process requires both the buyer and seller to meet at a Mailboxes etc (or have a notary with phone/fax access). But what you could do is fly out to to the transaction. This allows you to actually see the car before buying, and you can drive it back home (depending on distance and condition).

billwagnon · 03-14-2002, 05:58 AM

I don't need a loan. I will be sending a cashier's check.

My plan (please let me know if I'm making a mistake

)

1. Seller faxes me signed bill of sale (VIN, statement on condition of the car, etc.) and copy of title.

2. I FedEx cashier's check payable to title holder (seller's Credit Union) with a copy of the bill of sale - let them work out what the seller still owes and pay him.

3. Seller's Credit Union sends me the title via FedEx.

4. I make arrangements for pickup and delivery of the car.

The car in question has been thoroughly reviewed in person by two Pelicanites, and will also have a PPI before the title transfer.

StuttgartDavid · 03-14-2002, 07:24 AM

I would want to make sure there is some impound mechanism to make sure that step 4 happens after step 3. (Having bought cars in San Diego, there is a non-zero risk of the car disappearing across the Mexican border after money has changed hands but the car hasn't).
Also, who is responsible for damage to the car after the exchange of $ and title, but before you take posession? Make sure you have insurance on it the moment you own it.

R22tech · R22tech's Garage

Bill, I don't like it. Not one bit! Too much risk exposure. I know you don't need a loan-you would be getting it for YOUR PROTECTION. It just so happens that the seller will be protected as well. Think of it like using a credit card to purchase something over the net or mail order. You are doing it for PROTECTION. I guarantee you the bank will get that title direct from his credit union, as well as a title release form signed by the seller. If your seller is uncomfortable with that, get him on a conference call with the your loan company so THEY can explain what and how it's going to happen. I don't know what year or how much you are looking to pay, but more than $100.00 is too much for me to lose if I don't have to.

Other than that, you could call his credit union up and get his payoff amount, make a certified check out to the credit union and another to the seller for the difference, fly out to the car to take delivery of the car along with a bill of sale, signed title release form, and ID. Put the car on a transport(insured by you), hand him his check and drop the other in the mail while he watches. Even then, you won't fully be protected. How do you know he doesn't have a second lien holder on the car.

I know these things sound way out there, but $hit happens! I just make sure I have a commode nearby to keep it from landing on me.

billwagnon · 03-14-2002, 01:24 PM

Thank you for the explanation, I'm going to have to rethink this.

An additional wrinkle is the seller is moving to Oregon from LA next week and leaving the car at his dad's. It just gets better and better!

Bill Douglas · 03-14-2002, 06:01 PM

Ask the local Porsche outfit or some reputable garage to hold the car, then when both parties say to the garage to release it.

This is how I bought a car in England - me being in New Zealand. Ruf G.B. held the car and acted as an intermediatary. The seller, a chap called Nic called them to say he had got the money, I called to say I'd sent the money (well faxed actually) and is all well. They said "yep" and gave the car to my shipping agent who drove it accross town into a container and delivered it to it's happy new home here in NZ.

I'm a mad enough bastard to jump on the next plane, be there in 24 hours, and shoot someone if it did go wrong so I felt confident.

stormcrow · stormcrow's Garage

Just had a incident with long distance buying in my office. The owner wanted to purchase a MB Compressor in FL. Buyer wired deposit with condition seller would ship vehicle to seller for inspection (deposit included shipping costs). Also included a buyers contract signed with all pertenent info.

A week after the transaction ($1500.00) still no car, no contact with the seller, and no returned phone calls.

It's been over a month now and still no sign of the $1500.00 or the sellers intention to send the vehicle. Meanwhile the seller sold the vehicle to another buyer locally.

As you can see, there is a lot of scams going on. I just heard that E-bay is really suffering because of buyers losses. BE CAREFUL with how you go about making a long distance purchase.

Probably the best way to do it is the way Doug explained that is if the car is still being financed by a bank. You never know what to expect when it comes to dealing with people you don't know.

Steve

CamB · CamB's Garage

Quote:

Originally posted by Bill Douglas
I'm a mad enough bastard to jump on the next plane, be there in 24 hours, and shoot someone if it did go wrong so I felt confident.

Haha, all the way from NZ to the UK to kick some ass.

Hehehehe, I believe you!!