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Alright, not too much red please, I did attempting a search with respect to used car sales and found several threads, but most of them revolved around the purchaser, not the seller.

I've got a truck that I'm selling and I've got an interested buyer coming over today to take a look.

I just paid off the loan on 06/13 and the bank said that they will send the title out within 15 days (I assume it will come later this week).

What's the best course of action if this person would like to purchase the truck? Do I need to wait for the title to come in in order to complete the deal, or could we sign a bill of sale and just do the title paperwork when it comes in in a week or so?

He may not even be interested in completing the sale before the title comes in, but I'd like to be aware of what I can and can't do before he gets here.

Thanks FWF!

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Ask the dude what he would prefer.

I know if I were buying I would want the title in hand before you had cash from me.

Well, seeing as he's the one in the riskier position I'd say it's whatever he's up for. IIRC you might be implicated for liability in any incident involving the vehicle prior to transfer of registration, so be sure you've got a good bill of sale and keep a copy for yourself.

--Joe

both parties should be careful these days. what if he gives you a forged money order or cashiers check? what if you have a fake title?

just wait for the title. mail only takes a day or two to move once its mailed.

I wouldn't go near a vehicle without a clear title (that i could verify with the DMV is valid).

if payment was check/money order i'd validate that against the bank as well.

KGZotU said: Well, seeing as he's the one in the riskier position I'd say it's whatever he's up for. IIRC you might be implicated for liability in any incident involving the vehicle prior to transfer of registration, so be sure you've got a good bill of sale and keep a copy for yourself.

--Joe


Thanks everyone for your responses. From my perspective, I don't care if we wait 1-2 weeks for the title to show up and the paperwork to be processed, but I just wanted to find out if there is some liability on my end that would stop me from taking his money and getting a signed bill of sale, etc. and then just doing the title in a few days.

I think he may be a farmer and may want to pay cash, but if he wants to pay via check or other means, then I'll definitely be verifying funds prior to releasing the vehicle to him.

Why not just make the Bill of Sale / Contract contingent on receipt of clear title in the buyer's name within 30 days? You can also put in the agreement that payment must be in cash or Certified Bank Check if you are concerned.

isles1 said: Why not just make the Bill of Sale / Contract contingent on receipt of clear title in the buyer's name within 30 days? You can also put in the agreement that payment must be in cash or Certified Bank Check if you are concerned.

Thanks. Do you know where online you could download a form bill of sale that can just be filled in?

ltcm said: isles1 said: Why not just make the Bill of Sale / Contract contingent on receipt of clear title in the buyer's name within 30 days? You can also put in the agreement that payment must be in cash or Certified Bank Check if you are concerned.

Thanks. Do you know where online you could download a form bill of sale that can just be filled in?


http://www.carbuyingtips.com/billofsale.xls

isles1 said: ltcm said: isles1 said: Why not just make the Bill of Sale / Contract contingent on receipt of clear title in the buyer's name within 30 days? You can also put in the agreement that payment must be in cash or Certified Bank Check if you are concerned.

Thanks. Do you know where online you could download a form bill of sale that can just be filled in?


http://www.carbuyingtips.com/billofsale.xls


Thanks a lot, if I have reason to, I'll use that.

Don't close the sale till you have the title in your hands and go to the department of motor vehicles and transfer it into his name. I sold a camaro several years ago to a guy that never transfered it into his name. He kept getting tags in my name and registrations in my name. I had to pay insurance on the car for three years after I sold it or loose my license. Eventually the police gave me his home address and I went and repo'd the car. Drove it home and resold it again. He spent so much money customizing the car he couldn't afford to carry insurance, so he never transfered the tags and title.
It was a nightmare headache.

vaylon said: Don't close the sale till you have the title in your hands and go to the department of motor vehicles and transfer it into his name. I sold a camaro several years ago to a guy that never transfered it into his name. He kept getting tags in my name and registrations in my name. I had to pay insurance on the car for three years after I sold it or loose my license. Eventually the police gave me his home address and I went and repo'd the car. Drove it home and resold it again. He spent so much money customizing the car he couldn't afford to carry insurance, so he never transfered the tags and title.
It was a nightmare headache.


Wow, that sucks. The guy really liked the truck but wanted to look at a few others and said he'll call me either way. I was fine with this because it gives me time to get the title (hopefully this week) and get all of the paperwork squared away.

rigor said: both parties should be careful these days. what if he gives you a forged money order or cashiers check?

That was my worry when I recently sold my truck. I live in FL and used the Bill of Sale form the DMV provides. I had spoken with the local office first to make sure everything was on the up and up. This is what we did:

1) He put a deposit on the card while waiting to get an official check or initiate a wire.
2 - a) He brought me an official check for the balance
b) I took my plates off the vehicle, completed a bill of sale, and told him I would provide him the title when I was sure the check was good.
3) I went to the DMV with my notarized copy of the bill of sale and they marked in their computers that I have sold the vehicle.
4) 5 days later, I had my bank contact his bank and verify that the check was good and they was no worry of it coming back. They had no negative reports on it and noted it was already paid.
5) I mailed him the signed title via certified mail with return receipt.


The DMV in FL has a special spot to notate you have sold the car and thus you have no liability while they wait for the new owner to register and tag the new vehicle (He cannot get a tag and register it w/o the title though, so that was my backup).

He brought his own tag with him for the vehicle when he picked up the vehicle & gave me my check. However, the DMV (when I spoke to them when I first wanted to sell the car) gave me a temp tag for the vehicle and said that could stay on the vehicle for the next owner until he registers it.

CycloneFW said: rigor said: both parties should be careful these days. what if he gives you a forged money order or cashiers check?

That was my worry when I recently sold my truck. I live in FL and used the Bill of Sale form the DMV provides. I had spoken with the local office first to make sure everything was on the up and up. This is what we did:

1) He put a deposit on the card while waiting to get an official check or initiate a wire.
2 - a) He brought me an official check for the balance
b) I took my plates off the vehicle, completed a bill of sale, and told him I would provide him the title when I was sure the check was good.
3) I went to the DMV with my notarized copy of the bill of sale and they marked in their computers that I have sold the vehicle.
4) 5 days later, I had my bank contact his bank and verify that the check was good and they was no worry of it coming back. They had no negative reports on it and noted it was already paid.
5) I mailed him the signed title via certified mail with return receipt.


The DMV in FL has a special spot to notate you have sold the car and thus you have no liability while they wait for the new owner to register and tag the new vehicle (He cannot get a tag and register it w/o the title though, so that was my backup).

He brought his own tag with him for the vehicle when he picked up the vehicle & gave me my check. However, the DMV (when I spoke to them when I first wanted to sell the car) gave me a temp tag for the vehicle and said that could stay on the vehicle for the next owner until he registers it.



Thanks, that's a lot of good info. I live in OH, but I'll look into our BMV's policies and procedures in that regard.

One additional question to you car sellers reading this: would you ever accept paypal as payment for a vehicle (with a 3% premium paid by the buyer) or would the fear of a chargeback be too great to you? The reason I ask is that I live in a college town and a potential buyer asked about doing this because he didn't want (or couldn't) get traditional financing but did have the available credit. I could care less how he comes up with the money, but I was worried about a chargeback. Is there any way to negate this? I was thinking of a bill of sale with the words "As Is" all over it and a photocopy of the buyer's driver's license to prove that he is the person who picked it up. Thanks.

ltcm said: would you ever accept paypal as payment for a vehicle (with a 3% premium paid by the buyer) or would the fear of a chargeback be too great to you?

Me personally, NEVER! I had too much trauma over PayPal to ever use them again.

ltcm said: The reason I ask is that I live in a college town and a potential buyer asked about doing this because he didn't want (or couldn't) get traditional financing but did have the available credit.

This is precisely the thing you should be worried about. Someone who does not have the cash and cannot or will not get the proper financing. He would have to pay off the CC the following month or go into astronomical interest rates (I doubt he would do the FW 0% trick b/c if he did, he would already know another way to get the actual cash off the card) that he will likely never be able to make. Remember, auto loans are easier to get and have lower rates than most credit cards.

NOTE: I know many may say there are ways to get very low to no interest on their cards and I fully agree. However, FW has clearly established a number of ways to get the cash of the cards. Thus, if the person was smart enough to want to use a 0% or low interest offer, he or she would be smart enough to find another way of getting the cash off the card and paying by wire, official check, USPS MO, cash, etc.

CycloneFW said: ltcm said: would you ever accept paypal as payment for a vehicle (with a 3% premium paid by the buyer) or would the fear of a chargeback be too great to you?

Me personally, NEVER! I had too much trauma over PayPal to ever use them again.

ltcm said: The reason I ask is that I live in a college town and a potential buyer asked about doing this because he didn't want (or couldn't) get traditional financing but did have the available credit.

This is precisely the thing you should be worried about. Someone who does not have the cash and cannot or will not get the proper financing. He would have to pay off the CC the following month or go into astronomical interest rates (I doubt he would do the FW 0% trick b/c if he did, he would already know another way to get the actual cash off the card) that he will likely never be able to make. Remember, auto loans are easier to get and have lower rates than most credit cards.

NOTE: I know many may say there are ways to get very low to no interest on their cards and I fully agree. However, FW has clearly established a number of ways to get the cash of the cards. Thus, if the person was smart enough to want to use a 0% or low interest offer, he or she would be smart enough to find another way of getting the cash off the card and paying by wire, official check, USPS MO, cash, etc.



No, I wasn't really thinking along those same lines. The person who approached me about it definitely came across like this: I have cruddy credit, can't get traditional financing, need a car and this is one alternative. I have no idea whether they will default on the credit card the following month or not, but at that point it's out of my hands. I think any one who be interested in doing the 0% thing like you said would know how to get the cash off the card.

ltcm said: No, I wasn't really thinking along those same lines. The person who approached me about it definitely came across like this: I have cruddy credit, can't get traditional financing, need a car and this is one alternative. I have no idea whether they will default on the credit card the following month or not, but at that point it's out of my hands. I think any one who be interested in doing the 0% thing like you said would know how to get the cash off the card.

Gotcha, but here's my worry

In old TV Series, we would see that when a person goes bad on their credit cards, the credit cards try to recover everything they can. I remember TV shows where the mail order companies and tv shopping networks repossessed purchases b/c the cc was reversing the charges. Now, my source is not the best and I may be completely unfamiliar with how default goes (fortunately never needed the personal experience), but I would worry about the guy buying a big ticket item only for the cc company to reverse the charge to paypal the next month or so.

Now, that may never happen and I could be completely wrong here. Like I said, I am using old TV shows as a source. However, with PayPal, I have had such heartache and heard such horror stories (even on FW), that I would never deal with them. Too much chance of chargebacks in my opinion.

accepting paypal for a car is the most foolish thing anyone could do

SUCKISSTAPLES said: accepting paypal for a car is the most foolish thing anyone could do


Ok, if SIS thinks it's a bad idea, I'm out. No paypal for me.



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