Need advice, I may close a deal on a car in another state

I would give a regular check for the deposit and then have the car held at the dealer (with the title), to be released by the seller to the buyer when funds have cleared. Or you can call your banker and have the funds wired over while at the office of the dealer (with the seller present), and verify funding at the seller's bank, then take the title signed over with you, and have the car shipped from the dealer.
Personally, I did a local purchase (private party). The seller held a deposit check and I gave them a bank check for the balance when I picked the car and the title up.
BT

 

Really pretty easy.

See the car
Do a PPI
Agree on a price
Wire the money
Get the title
Drive or have a carrier take it home

Since you are there - I assume you would buy it while there in the other state? If so - you can do it all in just a few hours - since wiring money just takes a few hours.

If a bank holds his title - and you are getting a loan (or not) - you can have your bank call his bank to ensure they have the title, ensure they got the wire and ensure you get the title (or your bank if you are getting a loan).

Rich

 

i would consider getting the ppi first. depending on how much your plane ticket, hotel and time cost. it might make more sense to do that first. no sense to pay all that if the ppi is bad. you should be able to get a good visual inspection with pics, video. then do the ppi. of course, my plane ticket was only $300 and i had a free day, so it made sense for me to fly out first. also if your driving it home, you can fly out and drive home. alot of the other stuff will have to be negotiated with the seller. get as much on your side as possible. i don't think most sellers would sign the title over or deliver the car until they are paid in full. i am wiring the money for mine today. but it is to a finance company, so i am essentially buying it from them. they will send the title directly to me. i'll let you know how it goes. i like the idea of picking it up at the dealer if that can be worked out. problem is, alot of transport companies won't pick it up for a week, and i don't know if the dealer will keep it that long inside. it's all about negotiaition and getting as much your way as possible. but, with my experience, i have found ferrari sellers a little more challenging than most.

 

If you can have a trusted 3rd party, like the dealer, act as an escrow service, that would be best. I just bought a car using the steps Richard outlined and it worked out well, but I was left vulnerable a bit as all the steps couldn't be accomplished in one day while I was out there with the seller. What I've also done in the past is a variation that leaves the buyer less exposed:

* See car - while there make sure buyer holds a clean title.
* do PPI
* agree on price
* Fax a copy of the cashier's check to the seller so he knows you are serious. You'll have to skip this step if you are wiring funds.
* Have the seller overnight the title
* when you get the title, overnight the cashier's check or wire funds.
* When the cashier's check clears, have the car picked up for shipping.
Note: Cashier's checks and personal checks are not that different anymore - Banks will sit on them for 3-10 days either way.

-steve

 

What kind of Ferrari is it? For a newer one, a PPI before you fly out is a good idea. Glitches on 355, 360 etc. get really expensive really fast.

For an older car like a 308, I wouldn't bother with the PPI. I'd fly out, look at the body for rust, drive it and look for smoke, make sure it has good power, check the clutch (acclerate hard in 3rd gear from a slow speed), check for play in the water pump and wheel bearings....in a half hour or an hour you should get a pretty good picture. Records are always good of course. If you get a good price, you know you'll have issues pop up anyway, so why have a PPI?

Ken

 

I have the same situation except its a 2002 BMW M5

car is being inspected tomorrow

I plan on sending him a deposit then I have a friend who will send a truck to pick it up.

I am thinking of having my friends truck driver pick up the car & Title & give the seller a bank check

Thats great , but then the driver has the car AND the title

so thats the little wrench in that plan.

Escrow service sounds better or maybe I can have the BMW dealer help by holding the car until the driver gets there?

 

Could you use an actual escrow service like First American Title to do the deal & hold the car until the driver picks it up ?

 

You would be wise to ask if there is presently a note on the vehicle.

If there is, contact the note holder, indicate your intentions, and then send the entire $ to the lien holder and let them send the difference if any to the buyer.

In this manner you achieve a few important steps:

1) you are fully assured the note will be fully extinguished
2) you are assured that the title will be sent promptly to you or your lien holder
3) you will prevent any after sale financial issues so characteristic of private sales.

If there is no lien on the car, definitely go through an escrow company.

 

Greg,

Doesn't the lienholder have to send the title to the owner first so that they can sign it off before it gets sent to the buyer? This was the case when I bought my 308 that had a note on it.

-steve

 

Actually Steve is correct and makes a very good point - you are a bit vulnerable for a period without using a 3rd party. What it comes down to when you talk in person - is are you comfortable having your money wired and wait for the car/title for a period - if not use a dealer or other 3rd party. It can be a little more work for the seller but adds to the overall security of the situation.

I did this very thing when I recently sold my Gallardo - I used my dealer as the "broker"/Pass through.

Also - good point above on the PPI as well - if you want - have the PPI done before you fly out (if the plane ticket is high). I personally like to be at the shop when the PPI is done - to ask questions as we are right there with the car - but sometimes this is not possible due to timing.

 

How much does a dealer charge for this ? Seems very simple for them, easy $

 

Excellent advice! I'll remember that on my next purchase.

 

I just went through it last weekend with my purchase of a 348. This is how it went for me:

1. We agreed on the selling price over the phone, but it was contingent upon a PPI.
2. The seller took the car to a local independent Ferrari shop to get a PPI done. I paid for the PPI. The shop contacted me directly.
3. The PPI came back without any problems except that the car needed spark plug wires, which I was told by the shop cost about $1K. The seller and I split the cost and he reduced the price by $500.
4. A couple of days later, I drove to Mass. from NJ with a check for the car.
5. I gave the seller the check and he gave me a signed title.
6. On Monday morning, Intercity picked up my car and by Monday afternoon, the car was in my garage.
7. On Tuesday, I brought the title to NJMV for registration and plates.
8. I am now the happy owner of a 1990 348. No problems!!

The seller was awesome. Very open with me and didn't give me a hassle.

 

"Doesn't the lienholder have to send the title to the owner first so that they can sign it off before it gets sent to the buyer? This was the case when I bought my 308 that had a note on it.'

Steve,

It's more important to make sure the title is cleared of liens first before the seller has received funds in full.

The lien holder can sign off the title under a power of attorney with the seller, and the DMV does have exceptions for title substitution.

Whole idea is to make sure you get clear title.

You can have possession of a vehicle but without title you can do nothing. You need clear title.

Straightening out titles with some sales is a nightmare and costly.

Do it right the first time!

 

Agree completely I have bought several cars out of state and this is the easiest approach

 

Can you speak to the owner's regular mechanic? If he knows the car he can enlighten you on the ups and downs of the car. If the mechanic is forthwith negotiations can be basically pretty much settled on the telephone. Fly out inspect the car. Take it to the owner's mechanic or local dealership for conformation of what has been learned. Complete the deal and drive home. This worked for me and I have a great '85 QV.

 

Well, so far I personally have only bought one car out of state. I recently went out to NJ and brought home a driver 77 308. I guess you have to have some idea if the person you are dealing with is basically trustworthy. Everyone has some story, but when it all starts to sound like so much BS you have to fall back on basic instinct. And when your dealing with items that cost a considerable amount of money, I believe there are some very basic and simple rules, rules everyone of days gone by used to know before attorneys wrecked everything.

I believe a man or women should be an informed buyer. You don't personally know the person your dealing with, you could at least know the product. I believe in Caveat Emptor, or "buyer beware", and its done me well. I take the time to learn a few things about something I want, and basically walk into a purchase with the idea that the seller is going to hide something or in some way try to screw me. The more I know what to look for, and the better I know the price, the less chance there will be for me to get the shaft.

I also feel, that once an agreement has been reached, and the deal is done, it is done. If the car flies apart a mile down the road its still my car. Or yours, if thats the way it went. Unless there was some type of written guarantee of course.

One of the first few Ferrari people I met was a fellow from Iowa. He had sold a 308 to a guy in NY. 90% down, remainder upon delivery. The buyer came to Iowa, handed over a cashier check, and with title in hand drove off for NY. No one in thier right mind would drive a unknown Ferrari that far cross country, but thats what he said. I believe he went to Chicago, and supposedly had the water pump replaced, and upon reaching NY, somehow got the bank to cancel the cashier check. I never knew a bank could do that, but its possible, and I wont generally accept one anymore. He claimed the seller screwed him and kept the balance for repairs. I say BS, he bought the car, made the deal, and drove away. Done.

I am sure some of you will feel differently, but thats not how this country was founded. If you dont know what your buying, or dont know what your doing, why should someone else be forced to protect you from yourself. If I were doing this deal the way it sounds like its going, I would take the owner along with the title and go to a local bank, and have cash put into his hand while he signs over the title and has a reciept filled out giving details of the sale and have it notarised. If he dont want cash, the bank can make him a MO, or whatever HE wants to do. But I would have a title and a car and be on my way. In the end thats all you want or need.