Debunking Myths about the Dangers of Selling your Car ( Part 2 )

[matwil74]

Some guidance for selling to a local private party:

If you do end up with a local buyer, remembering a few things will save you potential problems:

1. Never, ever give the title or car to the buyer unless funds are 100% clear. I am referring more specifically to common cashier’s checks. Let’s say a seemingly nice person comes and gives you a perfectly good cashier’s check. You even call the issuing bank to verify it. He drives home and on the way the engine blows up. All he has to do is call his bank and report the check was lost, stolen or says he was defrauded in some way. His bank can place a stop on that check and refund the money (to him, not you!), even if you deposited it several days prior. This little known loophole with cashier’s checks essentially buys your buyer a 3-5 day test drive and puts your money at great risk. This is how long it takes these checks to clear, so keep that in mind. Tell the seller he has to wait until it clears before he can take the car!

2. If the potential buyer wants to take a test drive. Take a picture of his driver’s license with your camera phone and never let them go alone. If he wrecks it, it’s your loss. And obviously he wont be interested in the anymore. Traffic and parking tickets are on your tab too. So be careful, go with him on the test drive and guide him to routes that have less traffic/danger.

3. If your buyer pays with cash in person, check it’s authenticity. If you are selling your car it’s a good idea to be prepared and go to your bank to have the teller give you instructions on counterfeit identification and if you’re really nice she might even give you that cool little black marker that turns a certain color when swiping a U.S. dollar note.

4. Personal checks are just like cashier’s checks. Virtually no difference. Both can be canceled. Keep this in mind.

General Tips for a Successful Sale

1. Never promise a car to a buyer without a deposit! I see this all to often and everyone gets burned. Unscrupulous buyers will keep you on the line until they scrounge up the funds. Or they’ll use the opportunity to look for better deals. But in the meantime all those other interested parties you are getting calls from may already have ALL the funds in hand! It only takes a couple days or less to find a car so by waiting for the first guy you are giving away all those other potentially more reliable buyers, who might just find another car to buy in the meantime. Just make it clear to your buyer: no deposit, no promise! Now, if you do receive a deposit it’s important to honor the deal. But more importantly it’s what’s written down on the bill of sale, or email agreement, etc. If there is no time stipulation then you could possibly be holding the car for months, you know after his grandfather passes away and he gets the inheritance, etc. I generally have a 10 business day time limit for the balance. This is fairly standard, if not a bit on the long side.

2. I would suggest avoiding trades altogether, unless you’re a professional or s/he wants to trade gold bullion. Yes, I take gold bullion in trade for my vehicles! Gold is the oldest money in the world and easily exchangeable for any currency.

3. After signing off the title, make sure you get copies of the front and back.

4. Always remove the advertisement after selling the car

Now that you are armed with some knowledge, I wish you the best of luck with your sale!