Selling a *used* car

[dbk]

Believe it or not, this is the first time I've sold a car to an individual. The guy that's trying to buy it seems like a good guy, but I'm not sure I can get down with this process:


1) Sign all documentation and return it back in the return envelope that
Bank of America provided. (Includes Power of Attorney over the vehicle to the Bank, Transfer of Title)

2) Once that is done by the both and returned to Bank of
America.

3) They will send (Troy) the check. He will then fly to Detroit with 2
checks.

A) $XX.XXX Cashiers Check

B) $XX,000.00 Check from Bank of America.

4) He will test and look over the car FIRST. Then he will make the call to
buy the car then and there.


What if he decides NOT to buy the car? Then some chick at a bank has POA over my car? I've signed over an open title that's now floating in space? Obviously I'd rather just get cash and be done with it, but I'm not sure he can get me the cash without having that paperwork from me, which of course I'm reticent to send...

 

[MAD IN NC]

Sounds like your car will be gone, the title will be gone and the check most likely is from a Nigerian bank....

Want to buy some waterfront property? Only usable during low tide.

 

[427Aggie]

I've only done a check when I can cash it locally and have the money in hand..only then will I sign the title and release the car.

probably the easiest way is to setup a new account at your bank and get the managers number...have the person come look at the car and if he wants it wire transfer the money. Once your bank confirms that the money is IN THE ACCOUNT and you have a fed ref number you should be good.

I have heard people say that Wire Transfers can be recalled but checked into it and one you have a fed reference number I was told there is no going back.

matt

 

[dbk]

Exactly. The thing is, I know the guy from all the car boards, and the guy doing most of the talking for him has a 408ci C6 I've known for awhile, so it's not like they aren't "known".

 

[427Aggie]

You know if they see what goes on in the world today they shouldn't be offended....

It sounds like they are using BOA for an escrow agent..if thats the case....DON"T USE THEIRS! The escrow agent will be working for the buyer and if something happens and you don't want to let it go they might just send it on and not listen to you. I have had this happen many times with work transactions and fight the escrow agent tooth and nail because if they don't use mine sometimes they release the money without getting the proper documentation.

If you go the escrow route..tell them that you want to USE YOUR BANK! that way they work for you and you control when the title gets sent...

Matt

 

[Doc]

It sounds like they are using BOA for an escrow agent..if thats the case....DON"T USE THEIRS!

I agree. I would not accept this arrangement. It's completely loaded to the other side of the transaction.

I'd require that they bring a certified check to you during normal banking hours. After he inspects the car and decides he wants it, you can go over to your bank. I would require the bank to authenticate the check as being legitimate (they can call the bank the check is drawn on). You can release the title on a bill of sale which (as a legal contract) holds the buyer responsible to the clearing of the check. It also affirms your clear title and transfer of such title.

You could also deposit the check and issue a bill of sale to the buyer and later release the title to them as the check is cleared.

 

[B O N Y]

I've only done a check when I can cash it locally and have the money in hand..only then will I sign the title and release the car.

probably the easiest way is to setup a new account at your bank and get the managers number...have the person come look at the car and if he wants it wire transfer the money. Once your bank confirms that the money is IN THE ACCOUNT and you have a fed ref number you should be good.

I have heard people say that Wire Transfers can be recalled but checked into it and one you have a fed reference number I was told there is no going back.

matt

Open a seperate account for the transaction. Once the money is in hand, close the account. Beware of cashier's checks it can take weeks before you find out that you have a counterfit on your hands. In God we trust, all others pay cash...

 

[PL510*Jeff]

Seller Beware!!!!!!!!!!!!!

DBK - cashiers check, bank checks, etc are commonly put into a "held funds" status. Particularly in larger amounts, BofA generally uses $5k on personal acounts.

If the check is written on a bank in your Federal Reserve region, it will probably clear with in a day or two. If the check is on a bank in another region it can take upto 6 weeks to actually clear. Some but not all banks will "give" you the funds, either partial or full amount, sooner than the time it takes for the clearance to happen. A fraudulent check, found at the clearing house weeks later, will have your bank asking for their money back.

Cash is King. Talk to your banker and ask them for advice and assistance in this transaction.

DO NOT let the car or the title go anywhere with out proof that the funds are really yours. A bank of your choice can hold the title if need be.The seller may complain a bit, but then if the car is gone, and the money doesn't come through, the cost of reposession is all yours.

What ever you do, please don't let this transaction interfere with the Rally Preperations.

 

[fjpikul]

DBK, I have a couple of friends named Raymond and Walter that usually help guarantee no hanky panky during car sales. They are VERY intimidating if you need their phone numbers. Cash only.

 

[B O N Y]

DBK - cashiers check, bank checks, etc are commonly put into a "held funds" status. Particularly in larger amounts, BofA generally uses $5k on personal acounts.

If the check is written on a bank in your Federal Reserve region, it will probably clear with in a day or two. If the check is on a bank in another region it can take upto 6 weeks to actually clear. Some but not all banks will "give" you the funds, either partial or full amount, sooner than the time it takes for the clearance to happen. A fraudulent check, found at the clearing house weeks later, will have your bank asking for their money back.

Cash is King. Talk to your banker and ask them for advice and assistance in this transaction.

DO NOT let the car or the title go anywhere with out proof that the funds are really yours. A bank of your choice can hold the title if need be.The seller may complain a bit, but then if the car is gone, and the money doesn't come through, the cost of reposession is all yours.

What ever you do, please don't let this transaction interfere with the Rally Preperations.

Jeff is spot on!! Cash is king. Wire transfers, swifts all work.

 

[FlorIdaho Chris]

Dave-

I'd suggest a wire transfer as well. If he likes the car, he can call his bank and have the funds wired to your account. He can set this up ahead of time so the wire goes with a phone call. When your bank confirms receipt of funds then sign the title over. Generally he would have to authorize the wire before 2pm to ensure the funds hit your bank the same day. Depending on his relationship with his bank, this may cost him $0-25 for the wire.

Pretty simple and safe process. I have done this several times.

-Chris

 

[Doc]

I'd suggest a wire transfer as well.

A wire transfer would be great for DBK. He could be assured that the money has been properly transfered into his account before releasing the car and the title.

However, I was unable to complete a purchase of a F-GT because the dealer required a wire transfer. I had several communications (phone and email) with the sales people concerning the GT. We had worked out a suitable price and other small details that we both could live with.

The deal fell through at the last minute because the dealer wanted me to wire transfer the money into their account before I picked up the car. I called my lawyer after the dealer communicated to me the requirement of a wire transfer. He looked into it and advised me to decline the offer.

 

[Bart Carter]

...Beware of cashier's checks it can take weeks before you find out that you have a counterfit on your hands. In God we trust, all others pay cash...

My old roommate took a cashier's check for his Mercedes to the bank. The bank verified with the issuing bank that it was good. NOT!

He signed the title over and a week later it turned out that the cashier's check was fraudulent.

The car was sold to a dealer in California, who sold it to a customer.

He could not get the car back because he signed over the title. The money for the check was deducted from his bank.

If the funds are coming from B of A, go to the B of A branch and complete the transaction. Have them cash the check right there and give you the cash as you sign the title.

 

[dbk]

The sticking point of this whole thing is the title. He wants to bring 1/3 cash which we can take to the bank, and the bank will overnight me the check for the remainder while he's here(as long as they've received the paperwork by Monday morning). But I talked to my bank, my dad who is chairman of a bank, and the legal peeps and everyone gives the big "wtf?" :skep when they hear the title has to be sent out of state before the payment to the seller can be authorized. And everyone immediately recognizes the same problem with the arrangement.

Bank of America did little to ease my mind because the guy is like "no offense, but we're not interested in your car, we're interested in the loan". No offense, but I don't care what you're interested in, I'm definitely not interested in my open title being in the hands of a title clerk who has PoA in another state with absolutely no written garauntee of what will happen to it should the proposed buyer not want to buy the Z06. And that has nothing to do with the buyer, who could be a totally stand up guy by his actions, because it's all on this third party. BoA wasn't interested in a wire transfer either, and actually threw it out there that he could take the car monday and they'd get me the money later in the week :slap Seriously.

Ugh. I have to figure this out in 48 hours without being exposed because he's coming up from Texas Monday to try and get this done by the Z06fest (thursday).

 

[B O N Y]

Dave,
Have the money wired to your father's bank. Do a short term loan from his bank to BofA who has tittle. Cost you a few bucks for the loan from your Dad's bank and zero risk of getting hurt by your buyer... :cheers

 

[dbk]

Thanks for the advice gentleman. The car is sold! Got it taken care of. It was a sad day for me, because I really loved that car and it was my first real "fast" car, but I'm happy the guy who bought it seems like the right type of cat to buy it. If he has half the fun I had in it, he'll have gotten a complete bargain. :cheers

 

[fjpikul]

No time to look at the past, remember what's parked in your garage now. A new love for you to cherish.