[stomachmonkey]

It's a Letter of Credit.

A form of escrow where the bank releases funds when they receive the proper documentation, in your case the title and proper bill of sale.

There are variations on Akkreditiv, one of which is deferred release of funds. Translation, if you agree to deferred terms the car can leave your hands before funds are released.

His bank would work with your bank so if you proceed ONLY work through your bank.

His bank verifying the docs could add time to the process so enquire about that.

It might smell scammy to US sellers, and he could be a scammer, who his bank is will tell, but if he is a true Kraut then not so odd.