Advice on Selling to Out-of-State Buyer

[tkmoore]

Guys, selling my 83 SC soon and have an offer from an out-of-state buyer, willing to buy it based on my description, photos, and our phone conversation. He has sent a deposit to my PayPal (I confirmed the funds are there) and is offering to pay the balance with a certified check from a Bank of America here in Colorado or do a funds transfer to my bank here. Then, after we wait a few days to ensure everything clears, he will have the car picked up by a transport service and shipped.

I have no experience with this type of purchase/sale transaction and would appreciate any advice on how to do it properly to avoid being ripped off.

Thanks in advance,

Tim

[RSTarga]

Sounds like the right procedure to me.

[tirwin]

I think your general approach is correct. If your bank happens to be BoA the process is a little easier. If not, ask them about the waiting period for a wire transfer. I think there is a time period in which it can be reversed. Not saying the buyer isn't legitimate -- but you can't be too careful these days.

Sorry to hear you are selling your SC!

[zedsn]

I have done this several times and make sure the bank check clears first before you proceed further. Some people have tried to use phony bank checks. As a buyer I don't like wire transfers because once the funds are wired it is gone. I like the bank check approach easier as a buyer and seller however cash is king.

[Johnzoly]

Did this same thing in April. Did a wire transfer of $48k
(cost $25 in fees) into a bank account. Once the money
was in the account it was locked in. No waiting period.
Money was available immediately.

[Matt Monson]

Yep, you are doing the deal properly. As long as you don't release the car until funds are cleared in your account the buyer is the only one exposed.

I've also released the car but held the title until the funds clear. If their money is bad and they take the car it is auto theft. But slight exposure I felt good about the buyer.

[Bob Kontak]

It all sounds cool for tkmoore.

What assurance did the buyer have?

[speednme1]

Originally Posted by Bob Kontak

It all sounds cool for tkmoore.

What assurance did the buyer have?

None really. The seller and buyer should request a current ID from each other. A Paypal deposit seems ok but the seller should look at the buyers Paypal info..i.e. Name,address and when did the buyer join Paypal. If the buyer just joined Paypal or the name and address does not match the wire transfer info...or bank check....i would proceed with caution. Do internet searches on both parties and look for any previous scams using any of the names in the transaction. Lastly, once the funds have transferred and cleared. The buyer should request that the title be Fedex by next day air. The buyer should have proof of insurance before the car leaves the sellers home. Dissolves the seller from any liabilities should something happens to the car....oh and always draw up a bill of sale protecting both parties from any nonsense down the road. Just my .02

[Bob Kontak]

speednme1 - nice write up.

[Avanti]

Talk about money is not enough. Make sure the buyer agrees to purchase the car on an "as-is and with all fault basis". Also, if he declined a PPI note that. If he had a PPI, state he is relying on the inspector's report and not your description. Consult with a lawyer before you write any contract.

.

[speednme1]

Originally Posted by Bob Kontak

speednme1 - nice write up.

Thank you Bob.

[si Banker]

It goes without saying that you will only accept and Bank check but when I am selling to an out of state or local buyer; I require that the seller and I go to the bank the check iis drawen ob and cash it and I either tae counterfit bank checks.

I have bought and sold more boats, cars, and motorcycles than I care to think about and if you tell the buyer what you are going to require up front I have not had any complain and if they do complain you don't want to do business with them.

Don't do a transaction on the weekend or holiday because you can not check anything with the Bank.

Also check the vin numbers very closely

[Reddy Kilowatt]

A simple purchase agreement is easy to type up and goes a long way.

[350 SIX]

Bank wire only for me...It is instant and cannot be reversed...then fed-ex title immediately.
I've done this easily 25 times without incident. GLWS

[Cairo94507]

Yeah wire transfer is the best. Also make sure you complete a Release of Liability form and mail that to the DMV personally. Gets the car out of your name for any future problems that may occur.

I would never accept a bank check unless I was at the bank with the buyer when the bank prepared the check and handed it to me personally. A friend sold a car and accepted a bank check from the seller when they came to his home. They drive to the Wells Fargo and the bank told him the check was good. It was not, almost a week later they debited his account $5K for the counterfeit check. He got all nasty with WFB about it and they ended up splitting the $5K with him. He is much nicer than I would have been. Regardless, no bank checks unless the bank prepares it while I stand there and hands it to me personally.

[422flat6]

You can always go thru escrow.com. They will hold the title and funds and validate each before swapping. I used them for an out of state car sale and would use them again.

[Discseven]

Tim... PayPal is reported to be one of the most hacked financial services going. As far as I'm concerned, any deal with PayPal stinks from the start. Cash or wire transfer ONLY. If cash, bank checks every bill with buyer present. Responsibility for car transfers immediately to buyer when payment is received. Bill of sale is mandatory with buyer signing off on accepting car indicated by the VIN in "as is condition... no refunds after payment is made."

A few questions to ask yourself: Did buyer ask you details about the car? (A genuine Porsche buyer has a very high probability of doing so... unless your price is wayyyy below market.) Or, was he an all too easy sell? (Easy sell using PayPal reeks of scam in the making. Only thing that bodes well is you have confirmed payment DIRECTLY with PayPal.) Did he give you an excuse for needing to pay with PayPal now... and promising to pay later with a check or wire transfer? (Why would someone not be able to pay by wire now if they have the money?) Why would anyone pay for a car completely... then send someone to get it? (Would you pay a stranger completely for a car, and get it later? No offense to you---this has no business sense in it at all.)

I dislike casting doubt given you're probably feeling some measure of gratification with having sold your car... but... I've had scammers want to by my car via PayPal. They ask minimal questions about car---there's great urgency to pay for it right away---and there's some excuse why they can't pay via wire or cash. I've gotten same exact approach a few times. So I have empirical experience with PayPal's azz end.

Moving forward... advise watching out for: buyer giving an excuse for being unable to pay balance by certified check or wire transfer... and insisting on PayPal. Or worse, request for a refund. You might do well spending some time in PayPal forum to learn how scammers work these scenarios. Again, I prefer to be completely wrong about my PayPal doubts in this case for your benefit.

[T77911S]

I had my jeep for sale on craigslist (scam city). had a guy wanted to buy it out of state, in the military of course. same thing, send money thru paypal then have someone pick it up.,
I told him I haul cars for a living and was coming his way and would deliver it and take cash, never heard from him again.

do a search for paypal scam.

[Reddy Kilowatt]

Use of PayPal is not necessarily an indication of fraud. It may be the most hacked (I have not seen that data), but that does not mean frequently hacked. It is also widely used. Think about how many millions of deals have been done through eBay and other sites using PayPal. I'm no defender of them, but I used PayPal to provide a deposit for an out-of-state car. It's quick and convenient to initiate a deal. I wouldn't refuse to sell a car just because somebody proposed PayPal for part of the transaction. (I wouldn't use it for the full purchase price.) You'll need to protect yourself all the way through.

[speedster911]

I was the buyer in a similar car purchase. After a few weeks of back and forth conversations/ emails etc. with the buyer/ seller I think your gut tells you who you are dealing with. I sent the seller a personal check, told him hold the car until it clears and he could verify funds as it was going to take transport company a week to pick up the car. I did have him take photos of the car with that days newspaper so I could verify he wasn't scamming me! As the buyer I was nervous as heck after I sent the money as photos can be deceiving, someone's description of " clean" or " Immaculate" is normally much different than mine.

The reality is someone on PP or RL loves P cars and probably has had previous dealings with one of us. Have you done background check, easy to Google someone or look them up on LinkedIn, see where they live etc. May give you peace of mind. If I were the seller of a vehicle, I would definitely demand a week before I release the car to assure the funds are available. If wire transfer(probably best) I have removed money from my account the same day , ...Just in case.

GLWS -