I am about to sell one of my cars (not the T) to someone who lives over a thousand miles from me. I would like some advice on what steps should be taken to protect mine and the seller's interest, e.g. money properly transferred, handing over of title and car, etc.
1. I always provide the buyer a notarized bill of sale. I do not list the price on the bill of sale. The bill of sale states that the car is sold as is, with no warranty of any kind.
2. I always use the state's vehicle sale notice to the DMV. This lets the DMV know who purchased the car.
3. I notify the seller that insurance on the car terminates at the end of my driveway.
4. I call my insurance company the day after the car departs, and cancel coverage.
5. None of this happens until the money is in my bank. I have done wire transfer, check, and cash. All are good ways to transfer funds.
If he really wants the car he could come over, hand over the money and drive it home / trailer it home after you've signed the title
Don't accept a check with extra money to be forwarded to a shipper.. (common fraud with bad checks)
Keep in mind that a CHECK is a check no matter if it's a personal check, bank check, cashier's check or money order. Your bank will hold you responsible for the funds until the check is paid by the issuing bank. Out of state checks can take up to three weeks to clear the issuing bank.
The electronic clearing of checks is no guarantee the funds are valid. A stop payment can be issued at any time up to the point the issuing bank processes the "check".
As already mentioned, don't fall for the "extra money" scam. (Where you pay the shipper with the extra money.) Do NOT release the car until you have verified funds.
Just read in the paper a guy here in town sold a 4 wheeler to a guy for $3500 cash and it was all counterfeit.
Postal money is the only safe money. A check or bank check can be stopped up to a year. Cash the postal money order and they can not get to your bank account. Scott
Even Postal Money Orders have been forged, and you may be held liable for the money. The Fed has been good about protecting the Bank's interest using taxpayer's dollars, but not so good about protecting the public. Our checking account got hacked a few years ago, and I was the only person upset by it. The company that got ripped off and their bank and my bank all said "What are you upset about? We'll give you your money back!" They all got their money back from the Feds. They didn't seem to grasp the idea that that was taxpayer's money, and I am a taxpayer. Banks and businesses have no incentive to watch out for fraud, because buried in all that electronic banking legislation? They get their losses back. Or so a banker finally told me.
However, If YOU take a check, of any type, and it turns out to be bad? YOU may still be held liable for it. The bank doesn't care who makes it good to them.
Okay now, SHUT UP Sheldon!
Drive carefully, and enjoy, W2
Electronic transfer of funds (ETF) is the only way to go for me. It takes about an hour for the seller and their bank to get the $$$ to the buyer AND once the money is in your account it is yours and it is GOOD!! No concerns about checks and cash in larger amounts is a hassle.
I've never done an EFT either as a buyer or seller, so I don't know much about them. Correct me if I'm wrong, but isn't it necessary, when you're the seller, to provide the buyer with your bank account number so the money will go to the right place? If so, isn't this fact alone a significant risk?
I sold a car on eBay to a buyer in Portugal. I simply went to my bank and opened another account for $5.
Gave the buyer the new bank account number. He transferred funds. My bank called me in a week or so and said the funds were deposited. I had the my bank transfer the money from that account to my original account. They picked up car a few weeks later.
I only give my info to the buyer's bank, which is easy to verify prior to transaction. Just take your time and do things right, your own bank will help you. I have done a dozen or so of these over time with no problems and total satisfaction. Again, your own personal bank should be happy to answer questions and assist you.
The work I do we have certified bank checks that the banks charge back to us all the time. So u get a cashiers check an deposit it and it returns to your account and your out the car and the funds. If the bank has other items come through they pay the smaller amounts, leaving your big check bad. Nothing to do with ur buyer just that's banking right now. Get cash!! Tim
I'm with Jeff Perkins on the EFT. Absolute safest way hands down. Yes, even Postal M.O. can be forged. Plus, most don't go that very high of an amount anymore, at least not without costing an arm and a leg. "Certified" bank checks can end up not being worth the paper they're printed on. They are forged all the time. Henry, you don't have to worry about bank account numbers for an EFT, the bank issues a temporary proxy type number so there's virtually no chance of fraud. I've even received $$ from the sale of my firetruck to a museum in Brazil that way. No problem whatsoever.
I agree with EFT, it's the quickest and surest way to get money. I've sold a few cars overseas, and some in the States, using this method, and it's foolproof.
As far as giving anyone your account information, you do that every time you give someone a check in payment.....