Sell car with part of payment pending?

[kmarei]

I think I've found a buyer for my car
But he's offering $1000 less than my asking price
He said he could give me my asking price next month (I assume when he gets paid)

What's a good way to do this deal?
I was thinking he gives me the amount he has now
Gets the car
But I do not send him the title till he pays the remaining $1000
If I do this
Can he legally drive the car without a title?
And can he claim the title is missing, and issue a new one (thereby screwing me out of the remaining $1000)

Your thoughts?

[bvernon]

is he paying cash or financing the purchase? If he's financing the car then there's no reason why he shouldn't be able to get a loan for the entire amount unless he's shown you that he's pre approved for a lesser dollar figure and is $1K short. As far as title goes you have to sign it over to the new owner so assuming you hold onto it and he tried to get a new one he'd be committing a crime which of course would involve you going through a legal process for recourse. I'd say get the full amount now......

[kmarei]

He says his loan amount won't cover the car
So he is putting $4000 from his pocket
Which still leaves $1000 missing

[bvernon]

also, make sure you have his bank wire the money into your account and get all of that information from him. you may even want to go to the trouble of speaking to someone from his bank to confirm this is a real transaction. that way once the money has been wired you can check with your bank to confirm the transaction is complete. too many scams out there with Cashier's checks or money orders.......of course this assumes he's financing the purchase.

[tlp]

Have him Paypal you 1k that you hold in your PP account. When he comes up with the 1k cash you can refund him the PP payment.

[kmarei]

Originally Posted by bvernon

also, make sure you have his bank wire the money into your account and get all of that information from him. you may even want to go to the trouble of speaking to someone from his bank to confirm this is a real transaction. that way once the money has been wired you can check with your bank to confirm the transaction is complete. too many scams out there with Cashier's checks or money orders.......of course this assumes he's financing the purchase.

Well I won't give him the car till the money is in my bank and they give me a loan finallized document
So at that stage im good to go
And the money he will give me will just be paid by paypal or something

[bvernon]

also if he's local and you trust him you can always write the bill of sale to include a final payment 30 days out. that way you have something in writing and assume you will have his address, etc. if you need to find him :-)

[kmarei]

Originally Posted by tlp

Have him Paypal you 1k that you hold in your PP account. When he comes up with the 1k cash you can refund him the PP payment.

But doesn't that assume he has 1000 in his paypal he can send me?

[kmarei]

Originally Posted by bvernon

also if he's local and you trust him you can always write the bill of sale to include a final payment 30 days out. that way you have something in writing and assume you will have his address, etc. if you need to find him :-)

He's not local
He'll be coming up from north carolina
I can do the bill of sale
But what if he doesn't pay
The minute I need to get lawyers involved it's a lose lose for both us due to lawyer fees

[mmm def]

Keep your car for sale, if/when he has the $ and if your car is still for sale, you take care of the transactions then.

[tlp]

Originally Posted by kmarei

But doesn't that assume he has 1000 in his paypal he can send me?

I'm assuming that he has credit & credit card. Amazing that this guy can find the extra 1k for you. Incredible how far and deep people leverage themselves for a depreciating asset like a car.

[bvernon]

my feeling is make him find a way to get you the full payment so you don't have to worry about losing a grand......have you discussed the process with him and that he won't take possession of the car until his payment has cleared? that's usually a good way to see if someone is legit......

[kmarei]

Originally Posted by mmm def

Keep your car for sale, if/when he has the $ and if your car is still for sale, you take care of the transactions then.

Only problem is my 2012 m3 will be here any day
And I'm not sure how long the dealer will hold it for me
I can't apply for the loan foe the new car till I sell the old one

At the end of the day if he nevers pays, it's not a big deal
I'll have my new car, and 1000 won't kill me
But I was just wondering what's the safest way to do it
It's not 100% safe, but it's better than an IOU

[mmm def]

Originally Posted by kmarei

Only problem is my 2012 m3 will be here any day
And I'm not sure how long the dealer will hold it for me
I can't apply for the loan foe the new car till I sell the old one

At the end of the day if he nevers pays, it's not a big deal
I'll have my new car, and 1000 won't kill me
But I was just wondering what's the safest way to do it
It's not 100% safe, but it's better than an IOU

I think holding the title until he pays you the balance is a good idea then. Congrats on the 2012!

[rantarM3]

IMO, do not "sell" a car without receiving full payment and transfering title. If you do the transaction and keep the title in your name, he will not be able to register the car. If he gets into an accident, you may get named in any suit that could potentially be brought against him. Also, what happens to the insurance proceeds? At that point, he may just walk away and not pay you the remaining $1,000.

With so many scams these days, it's best to get full payment (cash or wire transfer) up front followed by signing the title over to the buyer immediately thereafter. Make sure the funds are cleared and in your account before turning anything over. These types of lingering deals are generally not a good idea.

Is your trade in deal so bad that you're willing to assume these types of risks?

[eisenb11]

Yeah, I was just about to post that.

I don't think he can register and insure his car without a title. Also a transfer of ownership form needs to be sent to the DMV (at least in CA) to remove you from liability of the car - can't do that while the title is still in your name. It's very risky business.

If you really need the cash fast, I'd put something in writing that he'll pay you the $1k within 30 days and make the sale. However, be willing to lose the $1k "just in case".

I don't like the idea of letting the car sit at the dealer - getting it out fast reduces the chance for test drives or being hooned by the techs and employees there!

[kmarei]

Originally Posted by rantarM3

Is your trade in deal so bad that you're willing to assume these types of risks?

trade is in 5K less than the price i'd get from him

[kmarei]

Originally Posted by eisenb11

Yeah, I was just about to post that.

I don't think he can register and insure his car without a title. Also a transfer of ownership form needs to be sent to the DMV (at least in CA) to remove you from liability of the car - can't do that while the title is still in your name. It's very risky business.

If you really need the cash fast, I'd put something in writing that he'll pay you the $1k within 30 days and make the sale. However, be willing to lose the $1k "just in case".

I don't like the idea of letting the car sit at the dealer - getting it out fast reduces the chance for test drives or being hooned by the techs and employees there!

well judging by what Technic said today
no 2012 will be released from VPC till the 15th
i can wait out a little longer

[eisenb11]

Originally Posted by kmarei

trade is in 5K less than the price i'd get from him

I was in the same boat. I sold my car immediately, because it was $5k over trade-in.

That should put you pretty close to the private party blue book value which is a really good deal (unless your trade-in was really really bad).

I'd be tempted to accept the offer (even at $4k over) and burn some of the "extra" on renting a car until yours gets here.

[rantarM3]

Originally Posted by kmarei

trade is in 5K less than the price i'd get from him

Is that net of the reduction in sales tax you get on the value equivalent to your trade (assuming you get the credit in CA)? If it's on a gross basis, you should account for the sales tax credit which can be fair amount.

[kmarei]

Originally Posted by rantarM3

Is that net of the reduction in sales tax you get on the value equivalent to your trade (assuming you get the credit in CA)? If it's on a gross basis, you should account for the sales tax credit which can be fair amount.

In VA you get 0 sales tax reduction

So no benefit there

I decided not to sell to him, he sounded very unsure of the whole deal
Just heard the 2012s won't be released from BMW till the 15th of October
So I'll wait till inget my asking price , or close to it

[rantarM3]

No sales tax credit is lame!

Worst case you can always go to CarMax to unload the car.