I've got a car I just listed as a private sell. The bank holds the title currently. Its an expensive car so when it comes time to money changing hands: What sort of payment is considered "safe"? If the buyer is out of state I can't necessarily go to their bank if they use a local bank. Also I can't release title on the car until the bank is paid off completely which would come after I received the money. So what happens between getting the money and getting the title to the buyer?
you'll probably get a dozen answers, but the last time I sold a car privately I did the following:
When the buyer came to p/u the car, I ask him to bring a bank check, not a personal one. Went to my bank, they verified funds and took his address to send the title (buyer or bank) once they got it from the state dmv (they only had an digital copy). As long as the bank can verify the funds and things don't otherwise look hinky, I'd probably just do that.
When I sell a car privately, I accompany the buyer down their bank while the bank drafts a cashiers check. I never transfer title until I have 100% "good" funds.
In an out of state sale, I would request a bank wire. Otherwise, I'd accept a cashiers check, but I'd hold back title until my own bank was certain it had cleared.
My question is if its an out of the area buyer who is coming in to buy the car and money changes hands. What happens next? Does he drive off with the car without title and then I convey title to him when I settle the bank note? Would a buyer be real excited to give me money and drive off with the car without actually having title?
This sounds like a job for an escrow company. Money goes to the escrow company along with the signed title. When the funds clear, the title is transferred. Everybody is protected, but of course there's a cost for the service. https://www.escrow.com/services/vehicle-escrow.aspx is the first Google hit for "car sale escrow".
What happens if the seller wants to write a cashier's check from Chase Bank directly to the Bank that holds my note? My issue with that is there is no way to quickly check to see if the cashier's check is not a forgery as it would take probably 5 days to get the check to the Credit Union and see if it clears before they release the promissory note and title back to me. In the meantime the car is in the hands of the buyer and long gone. Thoughts?
Never thought of it that way. I'll check with my insurance agent how I'm covered there. Still seems like once the bill of sale is generated and the car leaves my hands (even though I may still hold title) then the car is considered stolen and I report to the police? And I make a claim based on fraud?
I sold a 2004 BMW 325 with a lien on it as follows.
I first went to the buyer's bank with buyer, where he obtained certified bank check from teller in front of me.
I provided him with original payoff statement, and he called to verify amount was correct.
We then went to local FedEx office, placed bank check in FedEx envelope with payoff statement together, sealed it up and sent it.
I was very comfortable with this method, and thought it was pretty "scam proof".
He was comfortable as well, since he could see we were both overnighting the bank check to BMW Financial with the payoff statement, and he could easily and independently verify the address, amount, phone # etc.
There was some equity in the car, which he paid me via separate bank check.
This works well if the bank has a local branch. But in my case that's not possible.
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