Private party transaction, title and cash how to?

[rcdice]

Ok, I guess I'm showing my ignorance in these matters by asking this but I need some serious advice. I've typically always bought and sold cars through dealers. I am hopefully about to enter into an agreement to buy a Viper from a private individual. Here is the situation. He wants a $5,000 deposit (which seems fair to me). We won't be able to complete the transaction until early/mid May because of travel plans on my part. So questions are:

How do I protect myself with regards to giving someone I don't know $5k? Escrow account of some sort?

The deal would include having a Tech look at the car for final inspection before delivery. Upon that checking out, car is sold and I pay the difference which would be in the $50k range (car is an 01). He has the car financed through a local bank, they hold the title. I'm obviously not comfortable handing him a check for $50k. Should the check be a two party with him and the bank? How can I be assured that I will get the title from the bank?

I would really appreciate some advice on this. Perhaps I could even speak to someone via phone to help get my head straight. I want the car but obviously need to make sure I'm protected in the purchase process. Thanks for any advice.

 

[GraphiteGTS]

Give a postdated check.
Ask for less than a $5K deposit. Better still ask if he will waive the deposit.
Inspect before giving the deposit.
Go with him to the bank/finance company to witness him releasing the vehicle. The title has to be released as well.
After securing insurance go with him to courthouse for transfer.

 

[DR VIPER]

Make sure you do a proper bill of sale stating all terms and conditions especially when you're not sure who you're dealing with.Letter of release from the bank is a must to clear you of any potential problems,which means you may have to make the cheque payable to the finance source only.
Good luck!

 

[AG98RT10]

Also, write the VIN # on the check!

 

[GraphiteGTS]

Dr. Viper; what is a cheque? Pronounced shay-kue? Chee-key? What?

 

[DR VIPER]

Dr. Viper; what is a cheque? Pronounced shay-kue? Chee-key? What?

Check,that is...sorry,pal you know those darn foreign words

 

[GraphiteGTS]

Oh, "check". Yeah, I know what that is. I thought it was some sort of add-on or mod. I was about to start a thread asking if a cheque could add 16RWHP to a GENII.
Sure glad I didn't do that.
Thought it might refer to the cheque-engine light.

 

[Casey]

Give a postdated check.
Ask for less than a $5K deposit. Better still ask if he will waive the deposit.
Inspect before giving the deposit.
Go with him to the bank/finance company to witness him releasing the vehicle. The title has to be released as well.
After securing insurance go with him to courthouse for transfer.

Good advice.
I have always checked out the car before giving any $$. And meeting at his bank is the safest way for both of you to make sure the $$ is there and the title is yours too.

Not a big fan of giving a deposit, so don't unless you have too!

 

[AJT]

I do not think a post dated check means crap. Escrow the money.

 

[Achilles99]

I do not think a post dated check means crap. Escrow the money.

I've heard the same thing about postdated checks...

Besides, it's not hard to change the date on a check...

 

[joe117]

Looking at the deal from the sellers point of view.

As seller, I want a deposit in hand when some other buyer asks if the car is sold.

If someone gives me a check as a deposit, I will cash it ASAP.
So I wouldn't take a post dated check. That's not a deposit.

I wouldn't want to take a deposit until after all the inspection and test drive.
After the deal is done you either buy the car or you are given an agreed on time limit to do so.

The deposit is a non refundable payment to the seller so he will take his car off the market until the buyer gets his money ready.
The deposit is a non refundable payment by the buyer to lock in his deal.

If the deposit can be withdrawn by the buyer, it doesn't mean anything.

If the deposit can be returned by the seller, it doesn't mean anything.

 

[2001 Sapphire Blue]

You might also cheque (sorry, couldn't resist) into transferring the warranty at the time of sale!

 

[Topawam]

Personal Experience:
I close the deal on the phone for a $1000.00 on a credit card, I thought I could still argue with the credit card insurance if something had to go wrong. I think you should not wait a month and a half to close the deal. The seller might give you your deposit back if he finds a "better" buyer during this period. As to buy it, call the financing company and give them a check against the title and give the remaining to the seller (the way I sold my last car).
Before the CC transaction for the deposit, both party must sign a "contract" under what terms the sell will be finalized. (Controls, inspections, conditions, scratches etc..) It worked for me.
Good luck

 

[AviP]

Credit card companies do not always back you up on automobile deals. It's usually mentioned somewhere in the fine print.

 

[2MANYTOYS]

What if he gets your money and puts more miles on the car while waiting another month to pick it up? Or worse cashes your check then wrecks the car? I would have to have the inspection before the deposit is paid. If all is ok then have an agreement that no more additional miles are put on it.

 

[2MANYTOYS]

Also make sure you do 2 checks. One to him and the other to the bank.

 

[GraphiteGTS]

Bob, One wrench in the works is the fact that you cannot proceed w/the purchase because of travel plans. Therefore, you are not actually ready to complete the purchase at this time. When I buy/sell, I want to move on the deal and complete the transaction. Unless this is the absolutely perfect once-in-a-lifetime deal, why give him anything. Just say, you'd like the car when you return. If he has sold it, there are other cars out there.
2Many is right, he could use the car. Would he give you the keys and untransferred title if you gave him the $5K?

 

[rcdice]

Ok, here is how this deal has played out. Ebay auction expired last night, yes, Ebay. Here is the car:

http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&rd=1&category=6209&item=2470426840&sspagename=STRK%3AMEBWA%3AIT

After several conversations last night and today we agreed on a purchase price of $55k. Since my travel plans and my inability to close in a timely manner are not his fault, I've agreed to also pay the interest on his loan until we do close the deal provided HE does nothing to delay it. Tentative closing date is May 5. He agreed to take the deal on each others word with no deposit. I realize this opens the door to him selling it in the meantime, but so be it. I "think" he's honest. We discussed additional miles on the car several days ago. He mentioned that he has promised a 14 year old boy in his town a ride before he sold it and wants to honor that. I offered a maximum of 100 additional miles (pretty generous I know), he agreed.

On the day of the closing I will drive to his house and inspect the car again. As long as everything checks out, we will drive (without the car) to the bank which is 50 miles in the wrong direction from my house. My check will be made payable to the bank. He will have to bring over $2k to the closing as he is upside down in the car. The bank has said that with two days notice they can have the title waiting. Upon finishing that, we drive back to his house and I leave with the car.

Seems like it will work to me. I think I'm getting a good price, not great. Given that the car is somewhat local to me, has 14 months of factory warranty left, is in pristine condition and I'm able to talk with the original owner, means something to me. Worth a few grand? To me it is.

Anyway, that's the deal.

 

[GraphiteGTS]

Bob,
I'll have to say that you seem to have the bases covered. Why is he so desperate to get out? I'd sure hate to come up w/a portion of the payoff myself if I sold my car, like he's doing.
I'm familiar with the asking prices of similar cars, as mine is for sale and the price seems fair to me. I wish you well in the transaction. The trip must be pretty important to you. I'm waiting for the delivery of a car and can hardly wait.

 

[AmericanMuscle]

Nice Car. Hope all goes well with the purchase.