Private Sale Process
Thread Starter
Cruising
Joined: Jul 2015
Posts: 13
Likes: 0
From: Columbus OH
Private Sale Process
Guys - I WTB a good, clean 2004 car and I'm keeping my eye open for the right car.
But I wanted to start a thread on the process - in essence, an out-of-state private auto sale. I know rules change from state to state. But some questions:
1. Should I plan on paying cash? It would be a plus from both sides but also might be dangerous. If you were selling your car, what would you take in payment?
2. I would expect at minimum a bill of sale, receipt, and title signed over to me. If nothing else, I'll draft up a simple, generic document and have the seller fill it in and sign it appropriately. Is that reasonable to ask?
3. Do I need to worry about temp plates in the selling state if I'm driving it home?
4. Of course, I arrange my own insurance before taking ownership.
Any tips or insights are appreciated! God bless!!
Kevin
But I wanted to start a thread on the process - in essence, an out-of-state private auto sale. I know rules change from state to state. But some questions:
1. Should I plan on paying cash? It would be a plus from both sides but also might be dangerous. If you were selling your car, what would you take in payment?
2. I would expect at minimum a bill of sale, receipt, and title signed over to me. If nothing else, I'll draft up a simple, generic document and have the seller fill it in and sign it appropriately. Is that reasonable to ask?
3. Do I need to worry about temp plates in the selling state if I'm driving it home?
4. Of course, I arrange my own insurance before taking ownership.
Any tips or insights are appreciated! God bless!!
Kevin
Instructor
Joined: Mar 2015
Posts: 176
Likes: 32
From: Pennington NJ
Guys - I WTB a good, clean 2004 car and I'm keeping my eye open for the right car.
But I wanted to start a thread on the process - in essence, an out-of-state private auto sale. I know rules change from state to state. But some questions:
1. Should I plan on paying cash? It would be a plus from both sides but also might be dangerous. If you were selling your car, what would you take in payment?
I've bought & sold my share of cars. In almost every private sale or small private used car dealer I've always used cash. It's been a negotiating ploy. I know what the asking price is going in, I know there's room to negotiate. I bring the maximum amount I'm willing to spend. I negotiate the price based on cash here & now on the spot. Cash as someone once said is KING.
I bought my C5 Z06 a few weeks ago. I showed up with my max number in cash. Price accepted was much lower then ask but fair for both of us. After a few phone conversations with the seller I felt comfortable showing up with cash. By the way, I never tell the seller in advance I'm showing up with cash. I bought a C5 conv. 2 years ago from a small dealer specializing in Vettes. He did not want all cash. I paid 1/2 cash & 1/2 check. I got 2 receipts. 1 for the amount paid by check.
That being said, we now live in a different world. You do need to watch your ***.
2. I would expect at minimum a bill of sale, receipt, and title signed over to me. If nothing else, I'll draft up a simple, generic document and have the seller fill it in and sign it appropriately. Is that reasonable to ask?
Also make sure the title has No Liens and is the title for the vehicle your buying and is a clean title. No Salvage, No Rebuilt.
A CarFax is a good idea to confirm the vehicles title history.
A bill of sale can be written on your hand (just make sure it does not wash off), toilet paper or anything else in between.
The important details are:
Correct Vin #
Seller's Name (address can't hurt)
Buyer's Name (address can't hurt)
Vehicle Description
Vehicle Condition
Any warranty of any kind or no warranty sold in AS IS condition.
Amount paid, although not required you can add: Paid Cash or Paid By Check and add Check #.
But the major points are:
Vehicle Description
Vin #
Names of Seller & Buyer
Condition of vehicle
Warranty or As Is
Amount Paid
That's pretty much it
3. Do I need to worry about temp plates in the selling state if I'm driving it home?
This is a tricky question.
You can't drive it without plates.
I used to bring plates from 1 of my other cars and stick those on-not exactly legal and leaving yourself open to trouble if anything goes wrong.
You usually can get Temp Tags in the state the vehicle is being purchased, once you've completed the purchase
My Z06 buy was 180 miles from my home and across 3 states. Seller allowed me to keep his plates on the car. He trusted me to not hit anything and send him the plates as soon as I got home. I once did the same for a buyer of 1 of my cars. But, I would not count on most sellers doing this.
Other option is towing car home. If you don't have the towing equipment you can borrow or rent. I've rented pick ups to tow with as well as trailers. Not crazy expensive but another way of getting the car home.
4. Of course, I arrange my own insurance before taking ownership.
Insurance:
If you currently have car insurance, any new purchase is automatically covered for a limited period of time even if you have NOT notified your insurance company, at least in NJ. To b safe, call your insurance company and get a definitive answer from them.
Any tips or insights are appreciated! God bless!!
Before you even plan on seeing the car, run a CarFax
It's worth the few $ to get as much unbiased history as possible
Also, I think they guarantee the Title is accurate
Aside from the above, do your walk around the car & under the car
Ask a bunch of questions re: condition
Look under car for any fluid leaks
If you can, bring a floor jack & even jack stands & a flashlight to get a good look under the car
Make sure all the electric accessories work
Windows, seats, radio, heater, ac etc
Check the battery compartment for any corrosion
I guess that's about all I can think of.
As someone once said: Let The Buyer Beware, the onus is on you to do your homework
Last thing is: definitely drive the car. Even if the car has no plates and seller says you can't drive it--I'd be maybe a bit suspicious. There has to be a way to drive the car if even up and back on a driveway.
Kevin
But I wanted to start a thread on the process - in essence, an out-of-state private auto sale. I know rules change from state to state. But some questions:
1. Should I plan on paying cash? It would be a plus from both sides but also might be dangerous. If you were selling your car, what would you take in payment?
I've bought & sold my share of cars. In almost every private sale or small private used car dealer I've always used cash. It's been a negotiating ploy. I know what the asking price is going in, I know there's room to negotiate. I bring the maximum amount I'm willing to spend. I negotiate the price based on cash here & now on the spot. Cash as someone once said is KING.
I bought my C5 Z06 a few weeks ago. I showed up with my max number in cash. Price accepted was much lower then ask but fair for both of us. After a few phone conversations with the seller I felt comfortable showing up with cash. By the way, I never tell the seller in advance I'm showing up with cash. I bought a C5 conv. 2 years ago from a small dealer specializing in Vettes. He did not want all cash. I paid 1/2 cash & 1/2 check. I got 2 receipts. 1 for the amount paid by check.
That being said, we now live in a different world. You do need to watch your ***.
2. I would expect at minimum a bill of sale, receipt, and title signed over to me. If nothing else, I'll draft up a simple, generic document and have the seller fill it in and sign it appropriately. Is that reasonable to ask?
Also make sure the title has No Liens and is the title for the vehicle your buying and is a clean title. No Salvage, No Rebuilt.
A CarFax is a good idea to confirm the vehicles title history.
A bill of sale can be written on your hand (just make sure it does not wash off), toilet paper or anything else in between.
The important details are:
Correct Vin #
Seller's Name (address can't hurt)
Buyer's Name (address can't hurt)
Vehicle Description
Vehicle Condition
Any warranty of any kind or no warranty sold in AS IS condition.
Amount paid, although not required you can add: Paid Cash or Paid By Check and add Check #.
But the major points are:
Vehicle Description
Vin #
Names of Seller & Buyer
Condition of vehicle
Warranty or As Is
Amount Paid
That's pretty much it
3. Do I need to worry about temp plates in the selling state if I'm driving it home?
This is a tricky question.
You can't drive it without plates.
I used to bring plates from 1 of my other cars and stick those on-not exactly legal and leaving yourself open to trouble if anything goes wrong.
You usually can get Temp Tags in the state the vehicle is being purchased, once you've completed the purchase
My Z06 buy was 180 miles from my home and across 3 states. Seller allowed me to keep his plates on the car. He trusted me to not hit anything and send him the plates as soon as I got home. I once did the same for a buyer of 1 of my cars. But, I would not count on most sellers doing this.
Other option is towing car home. If you don't have the towing equipment you can borrow or rent. I've rented pick ups to tow with as well as trailers. Not crazy expensive but another way of getting the car home.
4. Of course, I arrange my own insurance before taking ownership.
Insurance:
If you currently have car insurance, any new purchase is automatically covered for a limited period of time even if you have NOT notified your insurance company, at least in NJ. To b safe, call your insurance company and get a definitive answer from them.
Any tips or insights are appreciated! God bless!!
Before you even plan on seeing the car, run a CarFax
It's worth the few $ to get as much unbiased history as possible
Also, I think they guarantee the Title is accurate
Aside from the above, do your walk around the car & under the car
Ask a bunch of questions re: condition
Look under car for any fluid leaks
If you can, bring a floor jack & even jack stands & a flashlight to get a good look under the car
Make sure all the electric accessories work
Windows, seats, radio, heater, ac etc
Check the battery compartment for any corrosion
I guess that's about all I can think of.
As someone once said: Let The Buyer Beware, the onus is on you to do your homework
Last thing is: definitely drive the car. Even if the car has no plates and seller says you can't drive it--I'd be maybe a bit suspicious. There has to be a way to drive the car if even up and back on a driveway.
Kevin
Thread Starter
Cruising
Joined: Jul 2015
Posts: 13
Likes: 0
From: Columbus OH
Burning Brakes
Joined: Jun 2008
Posts: 940
Likes: 81
From: Lake Villa IL
I have been thinking about selling my black on black '04 auto trans. It has both tops, Z51 and complete service history. Always garage kept. Just don't drive it enough since the divorce. PM me for more details if interested.
Le Mans Master
Joined: Sep 2013
Posts: 8,900
Likes: 1,074
From: Wisconsin
A cashiers check in the sellers name works just as good as cash and it's a lot safer. Make it in the amount of your low offer and bring an extra couple thousand in cash to sweeten the pot.
Racer
Joined: Mar 2010
Posts: 489
Likes: 6
From: Brockton MA
Sorry to say in this day and age Cashiers checks can be forged. Personally I would not accept one. Cash only or I don't release the vehicle until the cashiers check clears.
Racer
Joined: Mar 2010
Posts: 489
Likes: 6
From: Brockton MA
I brought the car to a local chevy dealer knowledgeable in Corvettes and paid for an inspection. I think it cost $150-175 and they still missed something (one of the cluster lights was out. Found out that night on drive home and they are unavailable new)
Le Mans Master
Joined: Sep 2013
Posts: 8,900
Likes: 1,074
From: Wisconsin
Forging a cashiers check is a felony and only a fool would use one to buy a car. He could never get the car registered and he would be easy to catch and prosecute and it's easy to verify the check. There have been several cases of robbery of buyers carrying large quantities of cash.
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Safety Car
Joined: Jan 2014
Posts: 4,496
Likes: 856
From: Walhalla South Carolina
I carried cash, another person with me, and a gun when I bought my vette out of state from craigslist. I got title only, drove home with no plates and passed one patroleman and no issues. My ins. covers me on any car I drive. If and when I sell my car it will be for cash only.
Le Mans Master
Joined: Sep 2013
Posts: 8,900
Likes: 1,074
From: Wisconsin
http://www.nydailynews.com/news/crim...icle-1.1872112
A cashiers check is worthless to a would be robber.
A cashiers check is worthless to a would be robber.
Safety Car
Joined: Apr 2011
Posts: 4,260
Likes: 429
From: Houston TX
I would prefer a cashiers check. If you were handing it to me I would most likely have you meet me at my bank or yours and verify it before accepting it.
Cash is too risky. If anything happens to it, it's gone forever. I would much rather have a document that can be traced by the banking system than cash. Besides, it's not like counterfeit bills don't exist. Nothing is 100% safe.
Cash is too risky. If anything happens to it, it's gone forever. I would much rather have a document that can be traced by the banking system than cash. Besides, it's not like counterfeit bills don't exist. Nothing is 100% safe.
Drifting
Joined: Jun 2013
Posts: 1,294
Likes: 367
From: Iowa
When I purchased my car I bought paid with a Cashier's Check made out to the seller. I also drove without any plates on the car but I had all documentation (Bill of sale, title, etc.) handy just in case I was pulled over. If you put your other cars plates on the car you could get a ticket because the plates aren't registered to the corvette.
When I purchased my car I searched a lot on google for the different laws and processes that needed to be followed.
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When I bought my current '03, I flew from mid-Missouri to Atlantic City, NJ and met the seller at the airport. Had a cashier's check for the purchase amount (agreed to over the phone) and the seller had all needed paperwork/items (clear title, owner's manual, everything else that was to be included with the car. I had e-mailed the seller a sample bill of sale for his approval prior to making the trip and brought that with me for completion at the time of money exchange.
Already had contacted my insurance company and determined the car was covered under my policy. Went with the seller to the NJ DMV and got a temporary tag for the car as I was driving it 1400 miles home and didn't want any problems with no plates on the car.
I did not have the car inspected by a third party or run a CarFax, but I did look it over before handing the check to the seller and if something would not have been as described in our conversations, I was prepared to walk away and just buy a plane ticket home. In this case, the seller was totally honest in his description of the car and I was very satisfied with the whole process.
Getting an inspection is never a bad thing though and does provide a little security/perhaps a negotiating tool if something is found.
Already had contacted my insurance company and determined the car was covered under my policy. Went with the seller to the NJ DMV and got a temporary tag for the car as I was driving it 1400 miles home and didn't want any problems with no plates on the car.
I did not have the car inspected by a third party or run a CarFax, but I did look it over before handing the check to the seller and if something would not have been as described in our conversations, I was prepared to walk away and just buy a plane ticket home. In this case, the seller was totally honest in his description of the car and I was very satisfied with the whole process.
Getting an inspection is never a bad thing though and does provide a little security/perhaps a negotiating tool if something is found.
Instructor
Joined: Oct 2013
Posts: 106
Likes: 0
From: Camillus NY
I paid for my 04 in a little different manner. No cash, no certified check. What we did was a money transfer from my Credit Union to the sellers Credit Union. Two different Credit Unions. Some credit unions have reciprocal agreements where these money transfers can be done. Banks probably do this also. Very safe transaction.
Melting Slicks
Joined: Jun 2013
Posts: 3,473
Likes: 691
From: West Virginia
The other thing to be very wary of with a cash transaction is getting stopped by the cops in Hicksville, and them confiscating the cash, as it must be from a drug deal. Lots of documented cases, esp. in the rural deepest south.
Team Owner
Joined: Jul 2006
Posts: 22,190
Likes: 4,178
From: Kannapolis NC
My banker advised me not to accept a cashier's check (or bank check) because they can be forged AND payment can still be stopped (contrary to common belief). He advised and I have used around 5 times now, a bank transfer. The transfer can be set up by the seller at his bank, with instructions to hold until further notice. You look at the car, check all the paperwork, then call your bank to activate the transfer. As a secondary advantage, the title, the seller and me are all at the bank at the time the money transfers and the banker can notarize the signature on the title and bill of sale. It only costs a few dollars for the transfer and transfer cannot be recalled. I will only agree to that method, or cash if done in a safe environment.
Le Mans Master
Joined: Sep 2013
Posts: 8,900
Likes: 1,074
From: Wisconsin
My banker advised me not to accept a cashier's check (or bank check) because they can be forged AND payment can still be stopped (contrary to common belief). He advised and I have used around 5 times now, a bank transfer. The transfer can be set up by the seller at his bank, with instructions to hold until further notice. You look at the car, check all the paperwork, then call your bank to activate the transfer. As a secondary advantage, the title, the seller and me are all at the bank at the time the money transfers and the banker can notarize the signature on the title and bill of sale. It only costs a few dollars for the transfer and transfer cannot be recalled. I will only agree to that method, or cash if done in a safe environment.
I have bought and sold many cars over the last 45 years. I have used personal checks, cash and cashiers checks. I have never had a problem with any transaction. Most people do not want trouble when selling or buying a car. If I ever felt uncomfortable I would walk.
http://www.ibat.org/legal-ease/2009/...k-stop-payment
Question
Can our customer put a stop payment on a cashier’s check? They think they might have been scammed and we would really like to accommodate them.
Answer
The simple answer is that a stop payment is NOT permitted on a cashier’s check, teller’s check, or certified check regardless of the reasoning behind it! Section 3.411 of the UCC imposes damages against a bank that wrongfully refuses to honor a cashier\'s, teller\'s or certified check or stops pay on one of those. You CAN re-issue these items after 90 days if a party gives you a declaration of loss under section 3.312, asserting that the item is lost, destroyed or stolen.
Can our customer put a stop payment on a cashier’s check? They think they might have been scammed and we would really like to accommodate them.
Answer
The simple answer is that a stop payment is NOT permitted on a cashier’s check, teller’s check, or certified check regardless of the reasoning behind it! Section 3.411 of the UCC imposes damages against a bank that wrongfully refuses to honor a cashier\'s, teller\'s or certified check or stops pay on one of those. You CAN re-issue these items after 90 days if a party gives you a declaration of loss under section 3.312, asserting that the item is lost, destroyed or stolen.
Last edited by JR-01; Jul 29, 2015 at 01:46 PM.
Racer
Joined: Mar 2010
Posts: 489
Likes: 6
From: Brockton MA
Just saying?
Just because it hasn't happened to you doesn't mean it doesn't happen. Having ALL the information is a good thing. Good luck with your purchase.
Just because it hasn't happened to you doesn't mean it doesn't happen. Having ALL the information is a good thing. Good luck with your purchase.
Le Mans Master
Joined: Sep 2013
Posts: 8,900
Likes: 1,074
From: Wisconsin
Just saying?
Just because it hasn't happened to you doesn't mean it doesn't happen. Having ALL the information is a good thing. Good luck with your purchase.
Just because it hasn't happened to you doesn't mean it doesn't happen. Having ALL the information is a good thing. Good luck with your purchase.
Melting Slicks
Joined: Nov 2014
Posts: 3,399
Likes: 1,339
From: Havre de Grace Maryland
I always sell the cars in the lobby of my bank. If the buyer wants to pay by personal check, the sellers bank calls the buyers bank (or through electronically) confirms there is sufficient funds available, puts a hold on the amount of sale on that account and then assists in the transfer paper work. I never had a problem with this process. I would do the same for a certified/cashier/bank check. My bank would confirm the authenticity of the check. But the fail safe is, if for some reason all these processes fail and money is not properly transferred, this is a theft claim and your insurance policy covers your loss. You just have to make sure there is a proper bill of sale signed and recognized by the seller’s state, have a copy of the buyer’s driver’s license and insurance card, and make a theft report to the local police. Regarding driving a vehicle without license plates or someone else plates that does not own the vehicle, there is an exclusion in auto policies that indicates no coverage for damage/liability “engaged in illegal activities”. Is driving a car without proper registration illegal activities? My suggestion, don’t take a chance and get temporary tags.