Standard contract for leaving a deposit?

fongpi · 10-01-2012, 04:17 AM

I'm planning on engaging in a private party sale this week, and may be required to leave a deposit. If I leave a deposit what can I ask for in return that guarantees the seller won't run with my money? He's asking for a 10% deposit to be wired to him.

So is there a standard contract to stipulate that upon arrival, if the car was misrepresented, that I get my money back? Does something like this hold up in court? I'm flying across the state to go see it this week.

Xtopherus · 10-01-2012, 04:47 AM

10% seems really high to just wire (Western Union? I hope not) to some random person for something like an M3 sight unseen. If the seller is a decent human being, a relatively low but non-trivial amount (say $500 or $1000) should be enough to show them that you're serious about actually purchasing the car. I wouldn't send $4k+ for something that may or may not exist.

Quote:

Originally Posted by fongpi

I'm planning on engaging in a private party sale this week, and may be required to leave a deposit. If I leave a deposit what can I ask for in return that guarantees the seller won't run with my money? He's asking for a 10% deposit to be wired to him.

So is there a standard contract to stipulate that upon arrival, if the car was misrepresented, that I get my money back? Does something like this hold up in court? I'm flying across the state to go see it this week.

paradocs98 · 10-01-2012, 05:02 AM

Quote:

Originally Posted by fongpi

I'm planning on engaging in a private party sale this week, and may be required to leave a deposit. If I leave a deposit what can I ask for in return that guarantees the seller won't run with my money? He's asking for a 10% deposit to be wired to him.

So is there a standard contract to stipulate that upon arrival, if the car was misrepresented, that I get my money back? Does something like this hold up in court? I'm flying across the state to go see it this week.

Regarding your username: yes, yes I did.

cmk227 · 10-01-2012, 08:21 AM

The two cars I have purchase my deposit was a copy of my plane ticket to see the car. I told them that I invested $400-$500 on plane ticket to see the car which show I was serious about it.

F82_SID · 10-01-2012, 09:33 AM

If he is asking you to send him 10% to via Western Union or to a personal bank account then it sounds like it might be a scam. I would definitely think twice about doing that... I agree with the other posters, 500$ should be enough to show serious interest.

I almost got burned on a scam like this when trying to buy a BMW S1000rr I found on Craigslist. The scamer even went as far as to create a fake PayPal invoice that instructed me to wire the money to the personal bank account of a "3rd party" who would hold the money until the transaction was complete. I called paypal to confirm the invoice and they told me it was fake and that they would never have a customer wire money to a third party.

That being said, I do believe that PayPal does offer some type of Escrow account where they will hold the money until the transaction is complete. If not, they will at least insure it if you do things from them. All the buyer beware websites always say to never send a Western Union and never send a bank draft to a personal account.

Just my 2 cents...

mdosu · 10-01-2012, 09:40 AM

private sale, do not pay a deposit...I wouldn't pay it, you have no easy recourse in case something goes wrong. Like others have said, you need to instill confidence in seller that you're not flaking out, that's it.

Let me get this straight, you're GOING there to see, test drive, and buy the car right? Please don't tell me you're paying it first, and then having the car delivered. If so, this is the oldest scam in the book.

Just arrange a meeting time and place, take your checkbook with you or a deposit slip. When everything checks out, go to your bank with the seller, and do a inter-bank transfer, the teller will confirm funds, and then it's done. No risk on seller or buyer side.

doubleo · 10-01-2012, 09:46 AM

dude.. RUN! this sounds like a scam... the mere fact that you want to fly over there to see the car should be enough for the seller. I would never give a private seller 10%.. (or any money at all really)

Grail05 · 10-01-2012, 09:53 AM

DO NOT put a deposit.. most i would put is $500... but even with that.. 10% is freakin BS... WTF...

M3 Esq · 10-01-2012, 10:01 AM

I would not send a deposit to a private party seller.

6spdg37s · 10-01-2012, 10:03 AM

i sold my z06 with 13k on it . for 45k and I only took 1k deposit and that was after we agreed he was buying the car , he saw it in person, and signed some paperwork .

fuck that wiring money to people shit.

M3 Esq · 10-01-2012, 10:20 AM

Quote:

Originally Posted by 6spdg37s

i sold my z06 with 13k on it . for 45k and I only took 1k deposit and that was after we agreed he was buying the car , he saw it in person, and signed some paperwork .

fuck that wiring money to people shit.

mdosu · 10-01-2012, 10:56 AM

Quote:

Originally Posted by 6spdg37s

i sold my z06 with 13k on it . for 45k and I only took 1k deposit and that was after we agreed he was buying the car , he saw it in person, and signed some paperwork .

fuck that wiring money to people shit.

whoa, that's a great deal! 45k for a Z06 with only 13k?

bga23 · 10-01-2012, 11:02 AM

+1,000,000 to what everyone has said.

And a contract doesn't guarantee he'll sell you the car, it just means if he doesn't can sue him for breach of contract.

There are too many M3s for sale that you don't need to mess with this.

6spdg37s · 10-01-2012, 11:08 AM

Quote:

Originally Posted by mdosu

whoa, that's a great deal! 45k for a Z06 with only 13k?

it was a fair deal. it was an 08 2lz non nav

I ended up knowing the person who bought it, thru other people i knew.

the front bumper needed a respray because it got scraped low but then started developing stress cracks.

book is 46-48. so i knocked off for that and some curb/pothole rash on the rims , etc;

6spdg37s · 10-01-2012, 11:09 AM

Quote:

Originally Posted by Team Plutonium

I only wire money to nigerian princes living in exile....

thats how my friend just sold his quad. it was only 3k but htey wired him 105k
and he fedexed the quad to nigeria .. and then transfered them back 102k

clearly kidding...but thats what they wanted him to do in the e-mail lmao

iamcpap · 10-01-2012, 11:11 AM

Quote:

Originally Posted by Team Plutonium

I only wire money to nigerian princes living in exile....

Only if they are trying to sell a car for their son who is studying abroad...

cposk · 10-01-2012, 11:59 AM

I would only make a deposit after I met the guy at his house and saw the car in person.

jimbethesda · 10-01-2012, 01:08 PM

If you absolutely must give a deposit, use a service like escrow.com. Basically, you give the deposit money to them and you and the seller agree ahead of time what the parameters are for the money to be released to the seller.

I used them once when I helped the owner of the company I work for sell his $100k Porsche 911 Turbo. In that case, the buyer put the entire amount into escrow.com. Once escrow.com told us they had the $$, we shipped the car. Once the buyer received the car, he verified that the car was as advertised, and then escrow.com released the funds to us.

mdosu · 10-01-2012, 01:28 PM

Quote:

Originally Posted by jimbethesda

If you absolutely must give a deposit, use a service like escrow.com. Basically, you give the deposit money to them and you and the seller agree ahead of time what the parameters are for the money to be released to the seller.

I used them once when I helped the owner of the company I work for sell his $100k Porsche 911 Turbo. In that case, the buyer put the entire amount into escrow.com. Once escrow.com told us they had the $$, we shipped the car. Once the buyer received the car, he verified that the car was as advertised, and then escrow.com released the funds to us.

sounds like the correct service needed, question is, how much did it cost and who paid for it? For a $100k car and lots of busy parties, yes, it's useful, but for a used 08 valued at around $40k...I think buyer and seller can just come to an understanding on buyer's intent.

Simma · 10-01-2012, 01:29 PM

80% of me tells me this is a scam. I've been scammed like this. Don't do it. Keep us updated!

Z K · 10-01-2012, 01:31 PM

As others have mentioned, do not send a deposit for a car you have not seen in person.

10% deposit is rather large. You guys should settle on a smaller deposit and get it in writing where both of you sign the document saying you paid him a deposit and you can get it back later if the deal doesnt go through. I sold used cars in the past and the deposit is usually a couple hundred dollars as a gesture to hold the car until you can get financing.

positiveions · 10-01-2012, 02:17 PM

WHen I took over the lease on my M3, i paid the guy 1000 dollar cash; but that's after the fact I had his information, his place of residing, and BMW financial was contacted with clear information from them (account number, vin number, etc...).
You don't get this lucky all the time. There are some legit sellers (few), and some are scammers. Just be really careful.

10-01-2012, 04:17 AM	#1
fongpi Jedi Poltergeist 39 Rep 171 Posts Drives: 2011 BMW M3 6MT ZCP Join Date: Mar 2012 Location: Southern California iTrader: (0)	Standard contract for leaving a deposit? I'm planning on engaging in a private party sale this week, and may be required to leave a deposit. If I leave a deposit what can I ask for in return that guarantees the seller won't run with my money? He's asking for a 10% deposit to be wired to him. So is there a standard contract to stipulate that upon arrival, if the car was misrepresented, that I get my money back? Does something like this hold up in court? I'm flying across the state to go see it this week.
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10-01-2012, 08:21 AM	#4
cmk227 Major 120 Rep 1,379 Posts Drives: Goal: Another ///M Join Date: Nov 2009 Location: Garland, TX & Northern England iTrader: (2)	The two cars I have purchase my deposit was a copy of my plane ticket to see the car. I told them that I invested $400-$500 on plane ticket to see the car which show I was serious about it. __________________ 14 Lexus GX460 & 14 Lexus ES300H 14 BMW 528d Touring Estate - UK Previous M's: 11 BMW M3 JZB ZCP 6MT, 02 BMW M3 Conv 6MT & 02 BMW M3 Coupe 6MT
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10-01-2012, 09:33 AM	#5
F82_SID Brigadier General 207 Rep 3,153 Posts Drives: 2020 M2C 6mt HK Silver Join Date: Jan 2008 Location: Denver, CO. USA iTrader: (2)	If he is asking you to send him 10% to via Western Union or to a personal bank account then it sounds like it might be a scam. I would definitely think twice about doing that... I agree with the other posters, 500$ should be enough to show serious interest. I almost got burned on a scam like this when trying to buy a BMW S1000rr I found on Craigslist. The scamer even went as far as to create a fake PayPal invoice that instructed me to wire the money to the personal bank account of a "3rd party" who would hold the money until the transaction was complete. I called paypal to confirm the invoice and they told me it was fake and that they would never have a customer wire money to a third party. That being said, I do believe that PayPal does offer some type of Escrow account where they will hold the money until the transaction is complete. If not, they will at least insure it if you do things from them. All the buyer beware websites always say to never send a Western Union and never send a bank draft to a personal account. Just my 2 cents... __________________ 2011/E92/M3/MR/BB/ZCV/ZP2/EDC/2MT
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10-01-2012, 09:40 AM	#6
mdosu Banned 314 Rep 8,496 Posts Drives: Double Vanos'd Civic-M3 Join Date: Oct 2009 Location: San Francisco iTrader: (6)	private sale, do not pay a deposit...I wouldn't pay it, you have no easy recourse in case something goes wrong. Like others have said, you need to instill confidence in seller that you're not flaking out, that's it. Let me get this straight, you're GOING there to see, test drive, and buy the car right? Please don't tell me you're paying it first, and then having the car delivered. If so, this is the oldest scam in the book. Just arrange a meeting time and place, take your checkbook with you or a deposit slip. When everything checks out, go to your bank with the seller, and do a inter-bank transfer, the teller will confirm funds, and then it's done. No risk on seller or buyer side.
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10-01-2012, 09:46 AM	#7
doubleo Memento Mori 23 Rep 127 Posts Drives: '11 E90 M3 Join Date: Aug 2011 Location: Miami, FL iTrader: (0)	dude.. RUN! this sounds like a scam... the mere fact that you want to fly over there to see the car should be enough for the seller. I would never give a private seller 10%.. (or any money at all really)
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10-01-2012, 09:53 AM	#8
Grail05 Putcha ang ganda... 279 Rep 5,441 Posts Drives: 17 F82 M4 Join Date: Feb 2010 Location: Los Angeles, Brea CA. iTrader: (10)	DO NOT put a deposit.. most i would put is $500... but even with that.. 10% is freakin BS... WTF... __________________
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10-01-2012, 10:01 AM	#9
M3 Esq Automobilist 395 Rep 2,632 Posts Drives: E70 X5, 911 GT3 Join Date: Aug 2007 Location: CT iTrader: (12)	I would not send a deposit to a private party seller.
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10-01-2012, 10:03 AM	#10
6spdg37s Captain 70 Rep 753 Posts Drives: none Join Date: Aug 2012 Location: dirty jerz iTrader: (3)	i sold my z06 with 13k on it . for 45k and I only took 1k deposit and that was after we agreed he was buying the car , he saw it in person, and signed some paperwork . fuck that wiring money to people shit.
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10-01-2012, 11:02 AM	#13
bga23 Dirty old man 59 Rep 493 Posts Drives: 2021 718 Cayman GTS 4.0 Join Date: Jun 2012 Location: Nashville, TN iTrader: (0)	+1,000,000 to what everyone has said. And a contract doesn't guarantee he'll sell you the car, it just means if he doesn't can sue him for breach of contract. There are too many M3s for sale that you don't need to mess with this.
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10-01-2012, 11:59 AM	#17
cposk Private First Class 15 Rep 154 Posts Drives: 08 IB M3 (E90) , 12 X5d Join Date: May 2012 Location: Annapolis - Maryland iTrader: (1)	I would only make a deposit after I met the guy at his house and saw the car in person. __________________ E46 Auto to 5-Speed Swap
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10-01-2012, 01:08 PM	#18
jimbethesda Colonel 1853 Rep 2,302 Posts Drives: M3 (F80) Join Date: Jun 2006 Location: Austin iTrader: (0)	If you absolutely must give a deposit, use a service like escrow.com. Basically, you give the deposit money to them and you and the seller agree ahead of time what the parameters are for the money to be released to the seller. I used them once when I helped the owner of the company I work for sell his $100k Porsche 911 Turbo. In that case, the buyer put the entire amount into escrow.com. Once escrow.com told us they had the $$, we shipped the car. Once the buyer received the car, he verified that the car was as advertised, and then escrow.com released the funds to us. __________________ 2001 330Ci (sold) 2007 335i (sold) 2008 E90 M3 (sold) 2015 M3 (sold) 2022 G83
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10-01-2012, 01:29 PM	#20
Simma First Lieutenant 28 Rep 333 Posts Drives: E92 M3 Join Date: Apr 2011 Location: Toronto iTrader: (0)	80% of me tells me this is a scam. I've been scammed like this. Don't do it. Keep us updated!
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10-01-2012, 01:31 PM	#21
Z K Major General 1887 Rep 5,506 Posts Drives: E90 M3, G20 M340i Join Date: Jul 2011 Location: San Francisco iTrader: (3)	As others have mentioned, do not send a deposit for a car you have not seen in person. 10% deposit is rather large. You guys should settle on a smaller deposit and get it in writing where both of you sign the document saying you paid him a deposit and you can get it back later if the deal doesnt go through. I sold used cars in the past and the deposit is usually a couple hundred dollars as a gesture to hold the car until you can get financing. Last edited by Z K; 10-01-2012 at 01:37 PM..
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10-01-2012, 02:17 PM	#22
positiveions Lieutenant General 961 Rep 11,722 Posts Drives: 19 Tacoma, 16 Golf wagon Join Date: Sep 2007 Location: Upland, CA iTrader: (2) Garage List 2019 Toyota Tacoma [0.00] 2016 VW Golf Sports ... [0.00] 1998 BMW M3 [0.00] 1990 BMW 325is [0.00]	WHen I took over the lease on my M3, i paid the guy 1000 dollar cash; but that's after the fact I had his information, his place of residing, and BMW financial was contacted with clear information from them (account number, vin number, etc...). You don't get this lucky all the time. There are some legit sellers (few), and some are scammers. Just be really careful.
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