Cross country sale with lender involved. Questions

If anyone was oon the selling end of a long distance transaction with a lender involved please chime in. Curiuos how payment and title swap was handled etc. Lender wants a copy of front and back of title right off the bat. not a huge surprise but I'm not a fan of a copy of my title floating through cyberspace. Buyer is having the car picked up by shipping company but I really don't like the idea of loading my car up in a truck without $$ in hand.

Can anyone chime in with transaction details?

Thanks,
Ben

 

I would not / do release car or Title until I am paid in full and the wire clears the bank. period, done.

A scan or digital pic of the Title is normal, i send the buyers this up front when they are ready to wire funds as proof of who / where I am, and to show the car does in fact have a clear title.

I would NOT let ANYBODY load or touch your car or title until the funds are cleared.

If you have to, receive the funds, let them clear, then FEdex the Title directly to a person at the Bank.

otherwise its a scam.

my .02

 

I agree with carreaper....I got there to pick up the car, then sat quietly while "My bank talked to his bank"......

I only gained a xerox copy of the paperwork to drive off into the night...

(Brand new TransAm, 24 hours drive from home)

 

Thanks for the feedback. I had planned to be sure the funds were clear before the car went anywhere. Just wanted to be sure that was common.

Ben

 

I just purchased a 360 Modena F1 a couple weeks ago. I am in Dallas, the car was in New Jersey. My bank wanted a copy of the front/back of title too before they would proceed with financing. The bank then gave me a cashiers check made out to the seller. I actually flew to New Jersey to inspect the car, give him the check and pick up the title. We went to his bank together to deposit the check. I took the title home with me and arranged shipping. It turns into a sticky situation if the seller does not want to turn the title over until payment clears, because the buyer also wants to leave with proof of purchase for his money too! Fortunately for me my check was drawn through a major trusted lender. If the check does not clear for some reason all you would have to do is file for a lost or stolen title, you still have the car... However if you decide to keep the car and the money after the check clears and you never turned the title over it is much harder for the purchaser to get his money back...

ps. I just noticed your login name... you post on WERA too!

 

It is, but it is all much easier to have it bank to bank or if possible even two branches of the SAME bank.

One Ferrari I bought was Wells Fargo on both sides so the transfer was all but instant and we were good to go.

 

Ben this is some good advice that the forum members have given you. I, as a lender and buyer, will from time to time ask that a copy of title be faxed to me. Nothing wrong with that. In addition to the direction that has already been given to you I would suggest that should payment not be made by wire transfer that the buyer bring a cashiers check for the purchase price from his bank and/or lending institution and that you both go to your bank and have your banker call his banker to verify the check to make sure it is legitimate. Your banker can look up his bankers telephone information and give the banker a call. I have done this myself and it worked fine. I have worked with wire transfers too, but not everyone is comfortable with that type of transaction in this deceptive world we live in. By all means hold your title until you have been paid. Wishing you the very best...

 

ummmm, have you ever had somebody screw up the Title to YOUR CAR , and had to then deal with DMV, the Bank, and the Insurance company??

i didnt think so.

Checks can be faked. Wire transfers still have to clear.

All Funds have to be "CLEAR" , or there can be big trouble.

Glad your 360 deal went smoothly.

Very hard to trust anyone these days, be careful out there.

 

Good advice, but some of us as sellers will not take checks, of any kind, from anybody. Wire transfer, or buy somebody else's car.

i had a guy buy a car years ago, Bank verified the "check" then 4 days later my bank called me to said it was fake. Big , royal pain in the ass, and the car was gone. oh yea, and the car got damaged too. Ill leave the rest of the drama out, but he paid me in full almost 2 months after the fact.

again, be careful out there.

 

carreaper is correct I did not realize that a bank check could be forged. Never thoguht about it really

My Ducati seller wanted cold hard cash..

At one point I thought I might end up in the ocean...LOL!

 

I am an attorney that represents a company that up fits, brokers, or sells depending the specific vehicle. I have also represented a number of banks through nightmare out of trust transactions. Leaving lender / UCC issues aside, my experience is that lawful transfer of title and not possession of the vehicle is the key. In other words, giving someone the title is legally binding but giving the vehicle is not. This can result in a buyer paying and taking possession of the vehicle only to get a call from someone that holds good title and having to cough up the vehicle and go looking for the guy that took the check. Wiring funds doesn't necessarily help, either - once the wire releases, the buyer is out of luck if the seller doesn't have good title to give. This can happen even when buying from a dealer (not a pleasant conversation telling someone who forked over tens of thousands to give the vehicle, sorry, not my problem, good luck going after the dealer that took the vehicle in trade or consignment, sold it to you, then went out of business but my client holds the title and didn't get paid so you can either pay again or hand over the vehicle).

In my mind, the best way to handle large dollar transaction like those involving higher end exotics is through a trusted intermediary acting as escrow agent that will hold the title and the funds and release each to the respective buyer and seller once funds have cleared and title has transferred into the buyer's name. It usually works the old fashioned way (and I have done it this way myself) but when it doesn't, it REALLY doesn't and that makes a couple of hundred dollars for the escrow look really cheap.

 

Yes they can be forged. However, your bank can call the others persons bank to make sure the cashiers check is legit...