Selling a car out of state

[Josh S]

This is the first time I'm selling a car to an out of state buyer. I'm in Cincinnati, OH and I've agreed to monetary terms with a buyer in NY for my 2008 Cayman S Design Edition. We're now trying to work out how the car, title, and money will change hands without meeting face to face. What is the standard procedure? He's going to arrange the shipping, and he's agreed to wire the money, but it's a matter of timing.

I suggested that on the day the car is supposed to be picked up from me, that he should wire the full amount to me. I will take a picture of the car being placed on the transport and send it to him. I will also go to the BMV and sign the title, get it notarized, get a bill of sale. I'll then overnight the title and bill of sale to him. He's worried that he would wire the money and never get the title.

He wants to wire half of the money on that day, and then the other half of the money once he receives the title the next day. I'm worried that once the title and car are out of my possession I have no legal recourse if he never wires the rest of the money.

Any help or suggestions would be appreciated. How do these transactions typically work?

Josh

[hillskier]

DO NOT send him the title without 100% payment in your account. If he is worried then he needs to close the deal in person.

[MrBonus]

Um, given the size of the transaction, I would not give up title without funds and realistically this is a transaction that should be handled in person. If trust is an issue, I don't see why you can't agree on some form of intermediary like a dealer to handle the receipt and disbursement of funds and the transfer of title.

[geshaghi]

Typically, buyer sends full payment (wire, check, cash, etc), and the car and title are released once funds are clear. If he wants to see the title first to confirm that you own the car free and clear, send him a copy via fax or email.

[ILXLR8]

You are selling an item and it is the buyers responsibility to pay for the item in full before he takes possession, it's that simple.

The interesting thing is that he does not trust the title being transported with the car and also does not trust it going separate. But their are only two options. Sending it separate is safer. I would never send the title with the car either!

The buyer has 4 choices:
1) Send the money and receive the car
2) Pay someone to represent him. Can use a Bank, car dealer, currency exchange, friend, small shop or finance company.
3) Buy a one way plane ticket and drive it home.
4) Buy a round trip ticket to walk the deal thru and have it transported home.

My recent examples: Was high bidder at a small auction for a vintage motorcycle, auction closed, I paid, title was sent and transporter picked up. I found a 08 Cayenne in Florida and closed the deal on the phone, made a small deposit and flew one way with the payment and drove it home. Also purchased a Aircraft and I got a round trip ticket to inspect it and then another one way ticket to fly it back. In this case the finance company acted as a representative for both of us and helped to keep things clean and honest.

For me, as a buyer, it is always in the order of inspect, pay and receive. That is how it works!

[Josh S]

Thank you all for the responses. I talked to my bank yesterday and they had the idea to sign and notarize the title and send it to a branch of my bank in NY. The buyer could then go inspect the title at my bank, wire the money, and once my bank confirmed that the wire cleared and the funds were in my account they would release the title to him. Sounds fair to me.

Better yet, he could simply bring cash or a cashier's check (with a call ahead from his bank to mine) to my bank and deposit that straight to my account. Or maybe he can make the call from my bank to have his bank wire the money while he's there.

I'm supposed to talk to the buyer again on the phone tonight, so I'll update with the result. I agree that payment should be made in full before the title is released, but I'm also trying to make the buyer as comfortable as possible. Neither of us has done anything like this before.

[Icepack]

What about an escrow service?

I wouldn't sign over the title until payment is received. What happens if the buyer backs out? Do you have to get a new title issued? I imagine that would take a few weeks and in the meantime you can't sell the car.

If I was the buyer, my biggest concern would be buying a car I haven't seen!

NY to Cincinnati ain't all that far. Most people don't want to travel to see cars that, after seeing them first-hand, they don't want to buy. Most people wouldn't have a problem traveling to see a car they've already decided to buy in order to close the deal.

Unless you're having a hard time selling this car as fast as or for as much as you want, I wouldn't bend over backwards for this buyer.

[Unobtanium-inc]

The traditional way of doing it -- buyer wires the money, then gets the car and title when the transaction is clear -- is foolproof, tried and true. The idea of sending the already signed title to a bank branch, etc. etc. is odd and not necessary. Also, you're relying on a branch employee to handle the situation the way you think it should be handled. What if they get confused or intimidated and release the title before they're supposed to? Cars are bought and sold every day using the wire first/car and title next method. If the buyer isn't comfortable with that he should buy a car locally.

We sell 6-figure Porsches this way. In the end, there's really no way for the buyer to be fully protected unless he flies or drives to you and does the transaction in person. Hopefully he has asked lots of questions and will ask to see the clear title in your name before he sends funds. Believe me when I tell you that any sideshow acts to the traditional methods of car buying/selling can get ugly in a hurry. Don't do it. - Matt