I had my Z for 3 years and love every minute with her so far, but now is the time to move on. So I decided to sell my Z and put the ad on autotrader.com and ebay. http://www.autotrader.com/fyc/vdp.js...g=en&cardist=0
Now I'm in the process of arranging the pickup and payment details. This is the first time I'm selling the car to private party, so I don't know in details what is involved.

He's financing the car, and the bank is working out with me to handle the title transfer and payment issues. They say when I sign the bill of sale and sign the title to release it, and send them to the bank, they will fedex me the check as soon as they receive the title. The buyer is located in Kingston, NY, and he will probably drive his truck here and tow my Z back to NY next weekend. Transferring the title and collecting payment will be done before he picks up the car, but the fact that I would have to sign/release the title before I get the payment worries me a little.

The question is this. Is this the correct/legit procedure when you sell the car in private, but get the payment from the bank because buyer financed the car? To sign and send the title before I get the payment worries me.

So far, the both the buyer and the bank looks and sounds quite legit to me. I have buyers full name and address, his office and cellphone number (he's in military) ,and the bank's information. I know these little informations wouldn't mean a crap when this whole scene turns out to be a scam, but well.

Please give me any tips or advices whatever involved when you sell a car to private parties. Thanks.

Sean

 

Sounds fishy to me. Every time I have financed a vehicle, the bank has handed me a check to hand over to the dealer, and then they send the title. No way in hell would I sign over a title until I knew the money was in my hands. You have no real way of knowing if the people from "the bank" were really working for a bank and not his friends that are playing a con game really well. Once you sign that title over and he takes the car, you might be out of luck. Get the money first, and make sure the check clears before you sign the title over.

 

Does "the bank" have a branch in your area? You can go to the bank and complete the transaction right there and then. I would not sign anything until I have a certified bank draft in my hand.

Another thought, I wonder if your own bank would be kind enough to help you complete the transaction by accepting and verifying electronic payment from the other bank?

 

I wouldn't do it. You sign the car over. The car is his and he can just tow it away.

 

use PAYPAL...LOL

 

Thanks for the advice guys. I was also thinking about the wire transfer payment method, but it doesn't change the fact that the payment comes after I sign the title and send it first. What that lady at the bank says is, they need to verify my title before they send me a check. In other words, they are worried that I might just run away to Canada or something after I get the check and cash out. lol. The bank the buyer is financing through does not have the branch in where I live as far as I know.

 

Do not sign over the title until you have the check and it is cleared, period!

You are the seller and must protect your interest, the buyer must trust you.

The whole point of having a title is to preserve your "entitlement", if you
give it up without payment you could be "SOL"....

Every private sale I have had, I went to the buyer's bank, he gave me the
money, I gave him the title.

JR

 

Bad move.

Not only do you get the check before you sign the title, you verify that the check is legitimate. If you are in doubt about this transaction (I am) sit with the buyer and a official from your bank. Many banks will assist with transactions such as this.

 

Fax or email the title.

 

If you were to sign the title and drop it on the ground. Anyone that finds it would legally own your car. Bottom line: Don't sign the title before you have verified funds in your possesion. If he can't complete the sale that way then sell it to someone that can.

 

Thanks a lot guys. The title will not be signed until I collect the payments and cleared through my bank.

I have some more questions though. When you buy the used car from a private party and do the financing through the bank, does the bank directly pay the seller? Or does the buyer get the check from the bank and deposit it in his/her bank, and pay to the seller? I prefer the second method much more, since that way I can ask the buyer to bring the cashier's check when he comes to pick up the car, and then after the check clears with my bank, then I will sign the title and hand it over with my Z. If this method doesn't work with his bank, well, he would have to find some other bank or I would have to find some other buyer.

Also, the bank he's going through is MacDill Federal Credit Union. I received some documents needed for transactions along with business card today. The bank is located in Tempa, Florida. Do you guys know this bank? www.macdill.org

I received two documents. First one is the Bill of Sale with Odometer Statement, and the second one is State of Florida Department of Highway and Motor Vehicles Power of Attorney for Motor Vehicle. I know the first one, but what is the second one? The bank wants me to sign both of the documents and sent back to them with released title. (this, I'd never do without payments securely in my bank account.) If I do, what kind of legal obligation do I get if I sign these documents? Should I also sign these documents after I get the payment secured in my bank account?

I'm going to talk to membership service in my bank, (Citibank) Monday to ask some questions about how they handle the auto loan for private sales. Then I will get some clearer picture to what to do next.

Sorry for some dumb questions. This is the first time I sell my car, so I need to get myself educated.

Sean

 

If the buyer has good enough credit, the bank will advance him the money and he pays you cash...

for most people, the bank want guarantees that they retain the car title. You can use a notary service to help the transaction. Sort of like an escrow if the bank will trust them, they will hold the title until funds clear and then they release the title to the bank... but not all banks will do this...

That's why private party sale is difficult to finance

 

I live in central Florida and can vouch that Macdill is a legit credit union. The forms they sent you are DMV forms required to apply for a Florida title on used vehicle with an out-of-state title. It seems the bank wants to ensure it's listed as the leinholder on the title before it gives the buyer the loan. I do think it's odd that the buyer lives in New York but is going through a Florida credit union? In any case I would never sign, and especially mail, a title for a vehicle which I hadn't received verified funds for.

 

it is Tampa, not Tempa. and yes there is bank called Macdill Federal credit union in tampa FL, my ex used to bank with them. one question tho, if he's from NY, why he's financing with this bank in FL?

 

The buyer pays the person who owns the car. If the title is lien free, the buyer pays the owner. If the car has a lien, the buyer pays the lien holder.

The power of attorney allows someone to act on your behalf for some specific purpose.

 

Maybe this person is in the military, or was at one time. I used to bank with Navy Federal Credit Union, and they are located in Virginia. I have purchased cars in Alabama and California, and had the first one registered in Texas (my home of record). Nothing necessarily fishy about it, they might get really great service through them and have stuck with them.

 

Yeah its totally not un common for us military folks to use a bank outside of state. When i was going to purchase a car from a private seller, the bank made me get all of the sellers info, and they wrote it on the check then sent me a bank check prefilled out to give to the seller. Then i took the title and sent it to the bank, and so on. Thats how it should be done i think.

 

Yeah. He is in military. He used to be in a Air Force base near Tampa. He said he financed 3 of his car so far with the bank and he's got a good credit, so I don't see why the bank wants me to send the title first before they send me a check instead of giving him a check to pay me.

 

Hmm.. Who keeps the title of your vehicle, when, say you bought your car brand new, and financed it for 5 years? I know you don't get the title because you're still paying it off right? Does the dealer hold onto it, or does the bank that gave you the loan?

 

Whomever puts a lien on the vehicle (e.g. Finance Company) keeps the title to hold (and legally owns the vehicle) until the lein has been satisfied. Then they will send the title to the buyer stating the lein has been satified. You should then go to the tag agency in order to get a 'clear title' (without the leinholder appearing on it) from your states DMV.