Possibly buying car site unseen..how does money exchange?
#21
Team Owner
Member Since: Jun 2005
Location: Northern, VA
Posts: 46,100
Received 2,478 Likes
on
1,941 Posts
St. Jude Donor '15
"In honor of jpee"
No intelligent seller will accept a cashier's or "certified" check as a payment and immediately release a car. Any paper check will (and should) be treated like a worthless piece of paper until it has been deposited AND cleared...a process which could take several business days. You need to verify with the seller what form of payment he will find acceptable. Like most have mentioned here, a wire transfer is probably going to be your payment of choice.
I will make a suggestion that might put you and the seller at ease. Go get a loan for the vehicle you're buying...even if you don't need one. Why? Because it puts an interested party (a lender) between you and the seller. A bank will not rip off the seller, and the bank won't pay the seller until the title is in their hands. If the seller has a loan on the vehicle, this won't be a problem as the lenders involved will deal directly with eachother. You don't have to worry about how you're going to pay the seller, because your lender is going to dictate the terms of the deal. Basically you just kick back and let your lender handle it.
I will make a suggestion that might put you and the seller at ease. Go get a loan for the vehicle you're buying...even if you don't need one. Why? Because it puts an interested party (a lender) between you and the seller. A bank will not rip off the seller, and the bank won't pay the seller until the title is in their hands. If the seller has a loan on the vehicle, this won't be a problem as the lenders involved will deal directly with eachother. You don't have to worry about how you're going to pay the seller, because your lender is going to dictate the terms of the deal. Basically you just kick back and let your lender handle it.
#22
Team Owner
Smart thieves will simply disappear into thin air once they have your money. You'll be left holding a pile of emails, and they'll be off spending your money on wine women and song.
The only way I would conduct a transaction like this is if was through a DEALERSHIP that had a longstanding business. There is no way I'd wire an INDIVIDUAL money for a car I have never seen, and if you're smart, you won't either.
The only way I would conduct a transaction like this is if was through a DEALERSHIP that had a longstanding business. There is no way I'd wire an INDIVIDUAL money for a car I have never seen, and if you're smart, you won't either.
#23
Le Mans Master
Member Since: May 2005
Location: Cape Coral FL
Posts: 6,612
Received 240 Likes
on
135 Posts
Cruise-In VI Veteran
Cruise-In VII Veteran
This is how it works:
Send me your money.
My car will remain sight unseen.
Seriously, I've only done this at dealers. Had my CU wire the money to them. Did that twice last year at Stasek Chevy, Worked a deal over the phone, but then I drove 1000 miles to trade. New cars from a dealer are simple. Private parties get more complicated, I'm sure.
Send me your money.
My car will remain sight unseen.
Seriously, I've only done this at dealers. Had my CU wire the money to them. Did that twice last year at Stasek Chevy, Worked a deal over the phone, but then I drove 1000 miles to trade. New cars from a dealer are simple. Private parties get more complicated, I'm sure.
#24
Melting Slicks
I understand what you're saying and that would probably be sufficient. But I'm simply too paranoid and don't trust commercial banking institutions. I personally would not have my deal reliant upon a conversation of a couple of bank employees telling me a check is valid. For me personally, your check is valid...just as soon as it clears.
#25
Race Car Tech
I bought my vette "sight unseen" but with tons of pics from every angle, inside and out, and underneath the car as well.
This was bought from a reputable forum chev dealer from Ohio.
Once we had come to a concensus on the price, then I forwarded a bank transfer from my bank to theirs. They sent me the bill of sale, a copy of the title in my name, so I could fax the info to the customs office at the border. I flew down to drive it back.
It worked out great in my case. No issues.
There are lots of carriers that are reputable, and most dealers use their favorites.
I'm not sure if I would do the same for a private sale. May do that in person.
This was bought from a reputable forum chev dealer from Ohio.
Once we had come to a concensus on the price, then I forwarded a bank transfer from my bank to theirs. They sent me the bill of sale, a copy of the title in my name, so I could fax the info to the customs office at the border. I flew down to drive it back.
It worked out great in my case. No issues.
There are lots of carriers that are reputable, and most dealers use their favorites.
I'm not sure if I would do the same for a private sale. May do that in person.
#26
http://www.nclnet.org/personal-finan...r-buying-scams
When it comes time to buy a car, consumers are more empowered than ever thanks in large part to the Internet and its offerings of car reviews, online vehicle history reports, detailed car listings, and more. The Internet has also, unfortunately, given scammers a new venue to find auto-buying victims.
One car-buying venue that consumers are increasingly turning to is online classifieds sites such as Craigslist. There are many advantages to using such sites to purchase an automobile, most notably cutting out the dealership middlemen. Unfortunately, NCL’s Fraud Center also hears frequently from consumers who have fallen victim to fraud when purchasing a car via these services. Different scams tend to affect buyers and sellers. Here are some of the more common variants, though this list should not be considered exhaustive, as con artists are among some of the more inventive criminals out there.
The “Price Too Good to Be True” scam
In this scam, a prospective buyer sees an attractive-looking car (often a classic or exotic car) for a price well below market value. When the buyer contacts the seller, he or she is notified that the seller and the car is outside of the country and will arrange for shipment of the car upon receipt of payment, most often via wire transfer (such as Western Union) or bank-to-bank transfer (for very large payments). When the money is transferred and collected, the “seller” breaks contact and the buyer is out the money.
The overpayment scam
A legitimate seller posts a car for sale. He or she is then contacted by a prospective “buyer” (really a scammer) who offers to send a cashier’s check immediately plus additional funds to cover shipment of the car overseas. When the check arrives, the seller is instructed to deposit it and wire the overage to the “shipper.” When this is done and the wire transfer picked up, the “buyer” breaks contact and the seller is left on the hook to their bank for the fraudulent check and the missing funds.
Escrow scams
Many consumers are rightfully wary of sending large amounts of money to someone they’ve never met. Scammer frequently recommend the use of fake “escrow” services that will hold funds involved in the transaction until both parties are satisfied that the transaction has been completed. In a typical scam, a legitimate buyer will be approached by a scammer selling a car (again, often an exotic or classic car priced, but usually priced well below market value). The scam seller will offer to ship the car and that there is no risk of fraud due to the “escrow” service (purportedly eBay, PayPal, or another service). Once the money is transferred, contact is broken (or sometimes additional funds are requested to cover “unforeseen” events). In any case, the legitimate buyer never receives a car and loses their money.
How to avoid car-buying scams
* NEVER wire money or use a bank-to-bank transfer in a transaction.
* ALWAYS try to deal locally when buying or selling an automobile or other high-value merchandise
* DO NOT sell or buy a car from someone who is unable or unwilling to meet you face to face.
* NEVER buy a car that you have not seen in real life and had inspected by a professional. A vehicle history report may also be a good idea, though scammers have been known to use fake vehicle identification numbers to defeat this countermeasure.
* WAIT until a check (personal, cashier’s, certified, or otherwise) has cleared the bank to transfer title or the car itself. Funds being made available by a bank DOES NOT mean the check is not counterfeit. Clearing a check can take days or weeks depending on the financial institutions involved. Check with your bank about their particular processes for clearing checks.
* NEVER trust a seller or buyer who says that the transaction is GUARANTEED by eBay, Craigslist, PayPal, or other online marketplace. These sites explicitly DO NOT guarantee that people using their services are legitimate.
* BEWARE sellers or buyers who want to conclude a transaction as quickly as possible. Scammers want to get your money before you have time to think or have a professional examine the deal.
* CALL the buyer or seller to establish phone contact. If the buyer or seller seems to neglect details agreed to via e-mail or is unable to answer questions about their location or the location of the automobile in question, it is likely to be a scam.
* ALWAYS trust your gut. If a deal feels “fishy” or sounds too good to be true, it probably is. Plenty of people use online classified ads to buy and sell cars every day. The vast majority of these transactions are legitimate and go smoothly. Losing out on a “great” deal in order to work with someone you trust could save you big in avoiding a possible scam.
If you feel you or someone you know has been a victim of a car-buying scam, report the scam to NCL’s Fraud Center at www.fraud.org.
One car-buying venue that consumers are increasingly turning to is online classifieds sites such as Craigslist. There are many advantages to using such sites to purchase an automobile, most notably cutting out the dealership middlemen. Unfortunately, NCL’s Fraud Center also hears frequently from consumers who have fallen victim to fraud when purchasing a car via these services. Different scams tend to affect buyers and sellers. Here are some of the more common variants, though this list should not be considered exhaustive, as con artists are among some of the more inventive criminals out there.
The “Price Too Good to Be True” scam
In this scam, a prospective buyer sees an attractive-looking car (often a classic or exotic car) for a price well below market value. When the buyer contacts the seller, he or she is notified that the seller and the car is outside of the country and will arrange for shipment of the car upon receipt of payment, most often via wire transfer (such as Western Union) or bank-to-bank transfer (for very large payments). When the money is transferred and collected, the “seller” breaks contact and the buyer is out the money.
The overpayment scam
A legitimate seller posts a car for sale. He or she is then contacted by a prospective “buyer” (really a scammer) who offers to send a cashier’s check immediately plus additional funds to cover shipment of the car overseas. When the check arrives, the seller is instructed to deposit it and wire the overage to the “shipper.” When this is done and the wire transfer picked up, the “buyer” breaks contact and the seller is left on the hook to their bank for the fraudulent check and the missing funds.
Escrow scams
Many consumers are rightfully wary of sending large amounts of money to someone they’ve never met. Scammer frequently recommend the use of fake “escrow” services that will hold funds involved in the transaction until both parties are satisfied that the transaction has been completed. In a typical scam, a legitimate buyer will be approached by a scammer selling a car (again, often an exotic or classic car priced, but usually priced well below market value). The scam seller will offer to ship the car and that there is no risk of fraud due to the “escrow” service (purportedly eBay, PayPal, or another service). Once the money is transferred, contact is broken (or sometimes additional funds are requested to cover “unforeseen” events). In any case, the legitimate buyer never receives a car and loses their money.
How to avoid car-buying scams
* NEVER wire money or use a bank-to-bank transfer in a transaction.
* ALWAYS try to deal locally when buying or selling an automobile or other high-value merchandise
* DO NOT sell or buy a car from someone who is unable or unwilling to meet you face to face.
* NEVER buy a car that you have not seen in real life and had inspected by a professional. A vehicle history report may also be a good idea, though scammers have been known to use fake vehicle identification numbers to defeat this countermeasure.
* WAIT until a check (personal, cashier’s, certified, or otherwise) has cleared the bank to transfer title or the car itself. Funds being made available by a bank DOES NOT mean the check is not counterfeit. Clearing a check can take days or weeks depending on the financial institutions involved. Check with your bank about their particular processes for clearing checks.
* NEVER trust a seller or buyer who says that the transaction is GUARANTEED by eBay, Craigslist, PayPal, or other online marketplace. These sites explicitly DO NOT guarantee that people using their services are legitimate.
* BEWARE sellers or buyers who want to conclude a transaction as quickly as possible. Scammers want to get your money before you have time to think or have a professional examine the deal.
* CALL the buyer or seller to establish phone contact. If the buyer or seller seems to neglect details agreed to via e-mail or is unable to answer questions about their location or the location of the automobile in question, it is likely to be a scam.
* ALWAYS trust your gut. If a deal feels “fishy” or sounds too good to be true, it probably is. Plenty of people use online classified ads to buy and sell cars every day. The vast majority of these transactions are legitimate and go smoothly. Losing out on a “great” deal in order to work with someone you trust could save you big in avoiding a possible scam.
If you feel you or someone you know has been a victim of a car-buying scam, report the scam to NCL’s Fraud Center at www.fraud.org.
#27
Le Mans Master
I know people do this all the time and are fine, but you hear enough dirty deals going down that I would not take the risk myself.
Here is what my friend did when he faced this situation and could not go personally see the car. He hired an (unemployed) friend that he trusted to drive out and pick up the car and trailer it back for him. He paid the guy a few hundred $ for his time, and all his gas and expenses. Gave him a cashier's check and had him look over the car as much as he could. He saved $ compared to a commercial carrier, and at least had some idea what condition the car was really in.
As a buyer, I just sold a car to a guy that sent me a cashier's check and did not want to drive 4 hours to come and see it. He hired a carrier to haul it to him. This made me very nervous. On my end, I took the cashier's check to a local branch of the bank it was drawn on, they verified it was a good check, and they gave me wads of Franklins that I took to my bank. They even ran the $100 bills though a machine to make sure the currancy was not counterfeit that they (the bank) gave me. Beware of strangers with wads of cash too. This only works if the amount of cash is $9,999 or less, or the bank you deposit the cash in must report you to the IRS. Either that or don't deposit more than that at one time. After the $ was deposited, I signed the title and watched the driver load it on the flatbed.
Here is what my friend did when he faced this situation and could not go personally see the car. He hired an (unemployed) friend that he trusted to drive out and pick up the car and trailer it back for him. He paid the guy a few hundred $ for his time, and all his gas and expenses. Gave him a cashier's check and had him look over the car as much as he could. He saved $ compared to a commercial carrier, and at least had some idea what condition the car was really in.
As a buyer, I just sold a car to a guy that sent me a cashier's check and did not want to drive 4 hours to come and see it. He hired a carrier to haul it to him. This made me very nervous. On my end, I took the cashier's check to a local branch of the bank it was drawn on, they verified it was a good check, and they gave me wads of Franklins that I took to my bank. They even ran the $100 bills though a machine to make sure the currancy was not counterfeit that they (the bank) gave me. Beware of strangers with wads of cash too. This only works if the amount of cash is $9,999 or less, or the bank you deposit the cash in must report you to the IRS. Either that or don't deposit more than that at one time. After the $ was deposited, I signed the title and watched the driver load it on the flatbed.
Last edited by Flame Red; 01-25-2012 at 02:06 PM.
#28
Team Owner
It says never wire money...let's see, I bought ten vehicles and wired the money ten times....never had a problem.
.
.
.
.
What do I think of that advice.....DELETE.
#29
Drifting
Another way that works......
Arrange your transporter in advance and get a cashier's check to the driver.
When he picks up the car, he can hand over the check and take away the car and endorsed title.
This was done in the days when certified or cashiers' checks were never doubted......today the seller would have to call the bank to be sure the check was good.
Arrange your transporter in advance and get a cashier's check to the driver.
When he picks up the car, he can hand over the check and take away the car and endorsed title.
This was done in the days when certified or cashiers' checks were never doubted......today the seller would have to call the bank to be sure the check was good.
Last edited by BostonJoel; 01-25-2012 at 05:56 PM.
#30
Advanced
Member Since: Oct 2004
Location: Lincoln California
Posts: 82
Likes: 0
Received 0 Likes
on
0 Posts
cashier's check can be forged like a regular check. Only way is to call bank that issued check, check # and amount and who made out to. CASH, only done at a bank--worth the flight cost.
#31
Burning Brakes
All of that was great advice. The only thing that I would add is that you have a thorough inspection performed by a competent mechanic before you send any money. This inspection would be at your expense, natch.
Also as suggested earlier, find someone here on the forum who lives in the area to look at the car for you. Even if they don't drive it, they can at least report on the cosmetic condition and you can verify that the pictures provided by the seller are accurate.
I've bought two cars like this and sold one. It can be done.
I used Passport to transport my last purchase, and they did great.
Also as suggested earlier, find someone here on the forum who lives in the area to look at the car for you. Even if they don't drive it, they can at least report on the cosmetic condition and you can verify that the pictures provided by the seller are accurate.
I've bought two cars like this and sold one. It can be done.
I used Passport to transport my last purchase, and they did great.
#32
Instructor
Member Since: Oct 2010
Location: Belleville Illinois
Posts: 231
Likes: 0
Received 0 Likes
on
0 Posts
There are third person parties, companies, that perform independent inspections of cars located nationwide---usually between $100 and $200.
They check cosmetic and mechanical conditions.
I agree with others, let the money be handled bank to bank.
They check cosmetic and mechanical conditions.
I agree with others, let the money be handled bank to bank.
#33
Le Mans Master
You might also get in touch with the local PD and ask if they know the seller. If he is known and has had no issues, he should be fine. You might also try to get in touch with the local Chamber of Commerce or any other organization that might have information on the person selling the car.
#34
Team Owner
You might also get in touch with the local PD and ask if they know the seller. If he is known and has had no issues, he should be fine. You might also try to get in touch with the local Chamber of Commerce or any other organization that might have information on the person selling the car.
#35
Wire transfer is the preferred methods that scammers use because it can be done anonymously and they can pick up the cash at all kinds of locations and then just disappear.
You keep doing transactions that way and you're going to get burned. A guy that I work with lost $12,000 that way, and the authorities told him that because it was done as a wire transfer, they have no way to track down the other party.
#38
Le Mans Master
I may be buying a vette across the country and have it shipped back. i know most would advise against it so those people dont have to chime in. For those of you who have done this before can you tell me the procedure you used to make payment and have it shipped to your house without worrying about sending money and getting nothing? Also if someone can recommend and transport company to ship the car that would be fantastic. Any advice for a smooth transaction would be greatly appreciated.
For a purchase with literally tens of thousands of dollars at risk, it's worth a couple hundred dollars for a plane ticket to go see the car and meet the seller face-to-face. This is absolutely positively not the place to save money on a car.
#39
I just sold a C3 on ebay to a guy in Brazil. He gave me a deposit on paypal to hold the car. Then he wired me the total amount (plus extra for shipping overseas) once things were in place. I was on the phone with both the shipping company and the import/export guy. It took 3 months due to government and customs stuff but finally happened. I had him wire me the money into a separate account. Waited 2 weeks before I allowed the car to ship. Shipped car with title in the glove box. Once I got the money I moved it out of that account. Paid the shipping company after the car left my house. Everything went fine.
#40
Pro