Buying a car from a distance - securely.

[ukchris]

It's looking like I'll be buying a 7 very soon which brings up the topic of how to pay for it. Do any of you have recommendations on how to facilitate a purchase that both buyer and seller can feel secure with? Clearly the seller wants the money and the buyer wants the car and nobody wants to take a chance on losing their part of the equation, do folks typically do part payments? Escrow? I'm sure in this day an age there must be mechanisms that are appropriate for this?

[papak]

I sold my BMW Z4 coupe to a fellow from 3 states away. We had a lengthy phone conversation about the car along with emailed photos and determined that it was exactly what he was looking for. He was quite knowledgeable about the car and I was able to answer all of his questions. He flew down a few days later with a cashiers check in hand for the asking price and proceeded to drive it home (a 1000 mi. journey!). Knowledgeable buyer, accurately presented car - no problems. We never discussed any other payment strategy.

[Croc]

My approach has been like Papak - both as a buyer and a seller. For the internet/phone auctions where I could not do a physical inspection but relied on photos, I just did a wire and swapped title by Fedex and had a transport co do the pick up. It depends on the comfort level I feel with the other person.

 

I have not used it but there was a website for escrow payments where funds were held in trust until both sides are comfortable that delivery has been effected. Some googling will turn that up.

[ukchris]

I think you're referring to escrow.com which looks to be an option, my current thinking (subject to discussion with the seller) is something like 20% up front and exchange title/registration, 40% on pickup and 40% on delivery, if we're lucky we may both use the same back and have traceability through transfers should anything go amiss.

 

I simply cannot get to the West coast to inspect in person but feel confident in how open the seller has been regarding the car.

 

My approach has been like Papak - both as a buyer and a seller. For the internet/phone auctions where I could not do a physical inspection but relied on photos, I just did a wire and swapped title by Fedex and had a transport co do the pick up. It depends on the comfort level I feel with the other person.

 

I have not used it but there was a website for escrow payments where funds were held in trust until both sides are comfortable that delivery has been effected. Some googling will turn that up.

[speedwagon]

I bought the Rotus/lola from a gentleman near Galveston it had been on ebay and we shared data afterward. Once we agreed on the deal I would have shipped it but it was easier and not much more to run get it from western AZ. Paid cash and did not bother to do a detailed inspection as I was confident that any surprises would not show up with one. Still have it and quite happy with the seller. Bought my Superformance S1 pretty much the same way. Just closer. First rule--"do not deal with scuzzballs". the description of the car will point them out if you look closely.

[fastg]

I once took a fake cashiers check for a motorcycle, well it was not a fake check it was a stolen check. They called the police when I attempted to cash it at my bank. I ended up claiming on insurance and got my money back. But the FBI came out to the house for me to look at a photo lineup, it was a group that got $300,000 in cars, motorcycles, RV's over a single weekend. But I have done other transactions with success, there has to be a level of trust, it you don't get that warm fuzzy feeling, don't do it. I just wired the money for the 7 the morning it was picked up from the seller, the car was exactly as I expected.

 

Graham

[xcarguy]

I’ve done wire transfer, cashiers check and escrow on both sides of the fence; the buying and selling end. What’s been the norm for me is money changes hands, title changes hands and then the car is either mshipped or picked up. Comfort level can vary (I’ve always had a good experience both buying and selling). As for buying, just as Croc, I’ve relied on photos as well as have someone I know in the area to look at the car for me. I’ve never bought a car that didn’t need work (neither has Croc ) or had something about the car that I wanted to change. Best of luck with your deal. :driving:

[Croc]

I’ve never bought a car that didn’t need work (neither has Croc )

 

Definitely true - the acquisition of title is usually the cheapest part of my "buying" experience lately! :rofl:

[Kitcat]

I bought my first se7en here on this site. The seller insisted on cash. So I drew out $22.5K and put it in a Passport type bag and slung it around my neck and under my shirt. I flew to NJ from Ohio, got a ride to the buyer's home, inspected and drove the car, fell in love, handed over the cash, took the title to the local place and got it transferred to my name along with temporary tags, called my ins co, got coverage, and drove it home that day.

[panamericano]

"I once took a fake cashiers check for a motorcycle, ..."

Follow-up.

According to a friend in the Secret Service, this is all too common. It can easily be a counterfeit. Especially on the weekend or outside of banking hours. Would you have any idea what a cashiers check from First National Bank of Waco is supposed to look like? I used to be in the motor trade. I would only take a cashiers check during the business day. Before delivery, call the issuing bank, get a officer and inform them that the check is being negotiated and in collection. I far prefer cash. Don't look rich and no one knows what you are carrying. I would rather fly and drive, or fly and rent a one way Uhaul truck. I have bought long distance, as many said, you may have a good feeling. Get a friend or someone to go see it, at least. Or ask the seller to take it to an authorized dealer for a pre-buy inspection on a production car With a valuable car, I sat in the seller's office talking and drinking coffee for 2 hours until he could confirm the wire came through. A domestic wire should not take longer, and it can be sped up by getting the Fed tracking number, then the receiving bank can suck it in. Be careful and be happy.

I once took a fake cashiers check for a motorcycle, I once took a fake cashiers check for a motorcycle,

[jloehlein]

When I bought my Birkin, the seller sent me a signed bill of sale, I wired the money, then he sent the title. I don't believe wire transfers can be reversed - so that seems like a pretty safe way if you're receiving money.

[Slonie]

I bought my first se7en here on this site. The seller insisted on cash. So I drew out $22.5K and put it in a Passport type bag and slung it around my neck and under my shirt. I flew to NJ from Ohio, got a ride to the buyer's home, inspected and drove the car, fell in love, handed over the cash, took the title to the local place and got it transferred to my name along with temporary tags, called my ins co, got coverage, and drove it home that day.

 

It's been a lifelong goal of mine to purchase a car with a fat sack of cash money (preferably with dollar signs written on it), or with a Zero Haliburton case filled with 100 dollar bills. Sadly, most dealerships frown on this (and maybe private sellers as well). In the case of my recent 7 purchase, I did a wire transfer. Probably no protection for the buyer in this case, but I trusted the seller (and he surely appreciated getting the funds immediately).

 

I had previously thought cashier's checks were generally to be trusted but after reading the story here, wow...

[Certified Lotus]

I have bought and sold many cars from a distance. As previously mentioned, a thorough conversation with the owner of the car is vital. I refuse to talk to “a friend who is selling the car for his friend” That alone stops the conversation. (unless it is a death, then I confirm it with a search on the internet). A personal look at the car by someone you know (I’m lucky enough to have a wide network of friends) is also important. I require recent photos (with something in the picture to prove the date, a newspaper or magazine) if you can’t get a personal inspection. Most of the time I do wire transfers (once I see proof of title, both sides to make sure no liens) as they can’t be faked. I accept personal checks as long as there is enough time to have the bank clear. Like others, only due business when the banks are open. ALWAYS create a bill of sale. I once bought a car that was misrepresented by the owner despite all my due diligence and lucky had him sign a bill of sale stating the car was as described in his ad. When the car rolled off the transport is was evident there were other issues. I contacted the seller right away and told him I wanted an adjustment on the purchase price. When he balked I calmly told him the consequences for interstate fraud. I got my adjustment check Fedex’d the next day.

 

I would NEVER do an all cash deal with someone I did not know. Never.

 

I also do do a photo search on google. Take one of the photos used in an ad and copy it and then paste in the google picture search. You will be amazed what comes up.

 

Rule number one, if it sounds too good to be true......it is. Rule number two, never accept putting the money in a “trust account” which will be released upon delivery of the car by the seller because they are overseas or in the hospital or what ever (I’ve heard it all).

 

Most important is to buy cars from people who are on sites like this that are known to others and have some history. And be careful of auction sites.....the bidding frenzy is sometimes out of control and you have no idea who your bidding against.

 

Good luck!

[ukchris]

I'd be very interested in whether we have any board members in the San Diego / San Marcos area who'd be willing to assist and maybe take a look on my behalf.

[bball7754]

Depending on your response here, you might also try the California Caterham Club:

 

http://californiacaterhamclub.com/