Situation:
-Buyer has a check from a financing agency.
-Buyer is coming to check out the car, agree on a price, then drive it back to his state the same day.
-The loan is approved for the buyer, but when it is deposited by the seller it will not immediately go into the seller's account (wait of 2-3 business days).

Question:
-So, without the funds in the account, should the seller be releasing the car and the title right after he deposits the check (but no funds in his account)?
-What is a proper procedure when selling a car privately when dealing w/ a loan? Anyone?

TIA

 

just hold the title until the check clears.. give him the car and a bill of sale that states the purchase price, VIN, etc and has some words to the effect that the title will be sent later.. fedex the title when the check clears..

no big deal..

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Cosworth &raquo;</TD></TR><TR><TD CLASS="quote">What is a proper procedure when selling a car privately when dealing w/ a loan? </TD></TR></TABLE>

Write a bill of sale that explains that you will keep the vehicle until the funds clear and give him the title to get his registration done.

Have it notorized if you want.

 

j00 are sl000w, RJ..

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by .RJ &raquo;</TD></TR><TR><TD CLASS="quote">

Write a bill of sale that explains that you will keep the vehicle until the funds clear and give him the title to get his registration done.

Have it notorized if you want.</TD></TR></TABLE>

So, RJ, you're saying that hold on to the car + bill of sale.

mstewar is saying that hold on to the title + bill of sale.

hmm, is there a right way or a wrong way about doing this?

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Cosworth &raquo;</TD></TR><TR><TD CLASS="quote">hmm, is there a right way or a wrong way about doing this?
</TD></TR></TABLE>

Nope.

Just cover your *** either way.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by .RJ &raquo;</TD></TR><TR><TD CLASS="quote">

Nope.

Just cover your *** either way.</TD></TR></TABLE>

Then, the car should have an insurance by the seller & the buyer until everything is settled...

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Cosworth &raquo;</TD></TR><TR><TD CLASS="quote">Then, the car should have an insurance by the seller & the buyer until everything is settled... </TD></TR></TABLE>

Probably. Thats what I did when I bought mine, it was actually insured before I brought it home - Geico rep gave me a world of **** for it, but I wasnt handing over a check until I had it covered.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Cosworth &raquo;</TD></TR><TR><TD CLASS="quote">

Then, the car should have an insurance by the seller & the buyer until everything is settled... </TD></TR></TABLE>

correct.. I didn't drop coverage on my truck that I just sold until I was sure they had it insured and registered..

and yes, release the car with payment, but hold the title and a copy of the bill of sale until the funds clear.. the buyer should also get a copy of the bill of sale to protect them as well..

it really should not be a problem for them and their bank won't even know the difference(they get their part/all of the title when the buyer registers it).. i've done this like 15 times as both seller and buyer..

 

I have bought and sold about 30 cars since my days in highschool fixing up 60's mustangs.
1) Personally i would never release a car into a buyers hands until the bank draft clears, especially if the car is going out of state. I have been on the short end of that stick and lost about 500$ and my time spent trying to get money or the car back and would never do that again. If the buyer is a friend, then maybe, but not on someone you have only spoken to on the phone. The only other way i would do that would be if the check was a certified check and I confirmed receipt of the check with an executive from the issueing bank, who could confirm funds available.
2) A notarized bill of sale should be issued to the buyer with both you and the buyer signing it in front of the notary when the buyer takes delivery. This will save your *** if he gets into an accident and kills someone and you get sued because you are still the owner of record. Make sure the bill of sale states "as is", this will also save you headaches later.
3) Confirm Insurance from the buyer via a phone call to his insurance company, not an insurance card, and get a photocopy of his drivers license.
4) I have kept electronic/ folder copies of all cars i have bought of sold for at least 5 years after sale.
Anyway, My 2 cents for what it is worth, if you need a format for a bill of sale let me know, i will email one to ya...

 

I don't have advice either way, but cover your ***. There have been a lot of scams using bad cashiers, etc. checks. By the time your bank finds out the check is no good, the car is long gone. Better yet, make the buyer cash the check and bring you cash. Check each and every bill with a counterfeit pen also.

Try to verify the funds from the finance company somehow. Otherwise, do the paperwork, deposit the funds, wait until they clear, then release the car. Holding the title won't mean jack if it's a scam - they likely won't be registering the car anyway.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by .RJ &raquo;</TD></TR><TR><TD CLASS="quote">

Probably. Thats what I did when I bought mine, it was actually insured before I brought it home - Geico rep gave me a world of **** for it, but I wasnt handing over a check until I had it covered.</TD></TR></TABLE>

i was told by my ins co that you are covered by your current policy for up to 48hrs after the purchase of a new car.

 

Sean, my bank wouldn't release the title to the new owner until his check cleared, so hold the title and have it notorized that you will release it to him when funds clear.