Selling my car, worried about possible scam?

So I am selling my car in order to fund other things. I have struck a deal with someone who is not local. Now I am curious what others think of the process his lender ( Bank of America) is having me go through.

I am bringing my title to my local Bank of America branch, and handing it over to them, along with signing a Power or Attourney for the Bank to transfer ownership of the car to the new owner. Now here is where I get a little worried. I do not get the check for my car right then and there. I am supposed to wait 1-2 days for the bank's funding department to send a check.

Now, this is Bank of America after all.. seems legit right? I confirmed the Phone #'s that called me are from Bank of America etc. but I my concern, is after I hand over my title and Power of Attourney, I still have no payment? ( Granted this is a long distance sale, and I wont be shipping the car until my payment clears) But after I hand over my title and power of attourney, the buyer can now decide to cancel the loan, or pay the wrong amount, register the car in his name and come after it legally, or something like that... and then It will be a long and costly legal battle to keep my car.

What do others think of this arrangement? Has anyone else had to sell a car like this?

 

SCAM... even if it isn't, I wouldn't do it

Banks are used to doing business COD... in banking terms they call this transaction "Delivery vs Payment"

You want "cash" when you deliver the car and documents... at a minimum you want to convert how ever you are paid to an instrument that is from the bank to you... someone can attach a cashier's drawn on the purchaser's account...

 

I've sold cars even out of the country. They send a certified check which I deposit. When the check clears, I deliver the car and the documents. Period.

 

+1

 

Dude when I bought the 360, PenFed sent me a check for the full amount. I signed it and then sent it down to them overnight delivery after I photocopied it and all other documentation. Only then did they send me the car. Title was sent to the lender respectively.

NO WAY IN H3LL I'd sign over a car without payment in hand or maybe.. maybe an official purchase order...

On second thought... yeah, no payment.. no car.

 

This is a scam. Do not under any circumstances sign over anything to your so-called prospective buyer until he/she wires or sends certified bank check to you.

 

There was a member here who tried this scam on me, but I didn't fall for it. He tried not only once, but twice. Second time around I called him out and told him that I remember his voice and previous name.

 

Scam. Not correct way to do it. Stop the transaction now.

 

Thanks for the input guys. Looks like Ill be finding a new buyer

 

You should have received all funds due before signing over the title or signing power of attorney, as has been stated above. Also make sure you have a bill of sale signed by both parties.

Note that if you're on the other end (the buyer), even though you should get the car after payment, it may take some time to get the title to you, especially if there is a lien on the car where the lien needs to be paid before title is released. Some buyers don't understand this, but there is no "scam" involved.

I realize this doesn't apply to your situation, but speaking as a dealer, I run into it often, especially with consigned cars. This is why Texas state law (and most other states are similar) give dealers a 20 day window to register and title a car in the buyer's name, or transfer title directly in the case of an out-of-state sale.