In my case, selling to Corvette World, the shipper is insured. My transaction was as simple as it gets. Guaranteed payment as long as the car was "as advertised" which it was. The minute they received the car they sent the check via FedEx and I had it the next day. No issues whatsoever.

 

I'm not sure that's exactly what keegs was asking.

Corvette World no doubt has insuracne, the buyer/seller has insurance and the shipper has insurance.

But if the car is damaged in transit OR until the final buyer has possession and signs for it, whose car is it ? i.e. when does ownership actually change hands ?

I would assume that once the end buyer officially accepts delivery and signs for the car it still belongs to the seller. Of course that would (also ?) depend on the sales contract signed by both parties as well.

And if it is damaged in transit whose insurance pays ? In transit, where 2 policies are in effect, the seller's and the shipper's, one would likely be primary and the other secondary.

As in when one rents a car. Usually the renter's insurance is primary (the owner's policy often covers a rental car with the same coverage) and the car rental agency, if one pays for their coverage, is secondary. This insurance coverage the rental agencies try to sell you is a HUGE moneymaker for them.

 

Well, I do happen to have experience with this type thing. I spent forty-years owning and running new car dealerships and bought tens of thousands of used cars in that time. The retail auto industry in the U.S. is one of the most highly regulated industries. It also generates more complaints in a year than any other retail category. The naive consumer willing to hand over their car without payment and " do not know for sure" is part of the problem. The only thing with all the rules and regulations and license requirements is that it guarantees the consumer gets to pay for their very own lawyer to protect their interest when all goes South.

Here is a pro tip from the guy usually called a crook....get your money upfront! Others pay upfront and all could if they wish. They are simply looking for a way out if they somehow don't like the product they committed to.

 

For a dealer to be licensed in any state they are going to be required to carry insurance. That requirement does not unequivocally guarantee they paid their last premium and are not exactly like some of the uninsured motorists driving down the street for which we buy insurance.

I have been to court where the opposition contended ownership did not transfer on cars I sold until the title was transferred. I actually had insurance for just such an occasion. The legal bills are often not cheap and a good attorney is going to have as many parties named as possible while looking for deep pockets. People pay attention! Just because someone should do something often has nothing to do with reality!

 

Not sure why you're (seemingly) so triggered by this subject.

While I totally understand not sending any money to an individual, a perfect stranger, to buy something, I daresay a national corporation would be a bit different.

Further, as in the link below, banks or credit unions often get into the act and (again) presumably protect their customer's interests - OK, OK, I know. They're protecting THEIR $$$ first. LOL

https://www.corvetteforum.com/forums...ive-money.html

I've bought and sold cars from the east coast to the west. Both of those time my credit union talked to the buyer's/seller's bank/credit union and arrange the transfer of funds and the passing of the title. Both transactions went smooth as silk.

So in all those years you've been in the biz, especially within the last 20 or so, you've never purchased a car "from a distance" ? Never sold a car to be prepaid and later picked up from you ? Or you had to deliver ? Every transaction was person-to-person ?

Carvana and Vroom seem to be awfully popular. Even here.

So what happened when someone went to court ? About the title that is. Unlike bread, half a story ain't better than none.

 

As already mentioned in this thread, just keep your title until you have the $$$$$.