Luxury/Exotic Motor Cars - Internet Dealers - Consultants - Brokers
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Internet Alerts
There are several "Nigerian" and other International scams where potential Buyers are claiming to be owed money by a third person or a their government or an inheritance. The person owing money has certified funds (forged check) sent to the Seller for an amount larger than the vehicle's agreed selling price. They then request that the Seller wires the excess funds to the Buyer (or Buyer's shipping company, or Agent or other third party). The certified funds turn out to be bad and the Seller loses the money sent to the Buyer.
Avoid any communications with anyone who want you to send them money in return.
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Additional Seller Tips:
• Be wary of Buyers representing a "client".
• Be cautious of Buyers who only communicate by email and/or are outside the US or Canada.
• Be wary of Buyers who want to send you payment without seeing your vehicle or having an inspection performed.
• Be careful when Sellers are looking to buy your vehicle with unusual payment methods.
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Buyer Tips
• Use only reputable Escrow Services.
• Be wary of Sellers who list their vehicles in the US or Canada, once contacted, the vehicles are now located over-seas.
• Contact the Seller by telephone. Another red flag for potential fraud is Sellers who only communicate by Email.
• If the Seller's asking price is unusually low, this is a reason for concern.
• Personally inspect the vehicle or have a trusted third party inspect the vehicle before sending payment.
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If the transaction does not seem right, walk away.
Whether you're dealing with a buyer in person, via email or over the telephone, always be careful when accepting payment. Scam artists are good at what they do; remember these steps to make yourself less vulnerable:
• Never wire money to a potential buyer under any circumstances. If a buyer pays via a check or money order, accept only the exact amount of the sales price.
• Confirm with the issuing bank that the check is valid. Look up contact information for the bank on your own, as a forged check likely will include a phony bank address and phone number.
• When possible, go to the bank with the buyer to verify the check's authenticity. In addition, it's a good idea to request a cashier's check drawn from a local branch.
• Stick to your timeline and don't rush the transaction. If the bank is closed when the buyer wants to pay you, hold off until you can verify the check's validity. If possible, wait until the check clears the bank before handing over ownership of the vehicle. How long that takes will depend on your bank, but it should be less than a week.
• If the buyer chooses to pay by money order, follow the same safe-payment guidelines for accepting checks. Verify the name and amount with the issuing bank, and request a money order from a local bank whenever possible.
• If those methods leave you feeling squeamish, there's always cold, hard cash. Your best bet, however, may be Escrow.com. It's legitimate and offers equal protection for buyers and sellers. There are other such sites online, but be sure you are certain of their legitimacy before you use them.
Securing Safe Payment
Finalizing The sale
Transferring ownership to the buyer is easy, but details vary by state. Check with your local Department of Motor Vehicles for location-specific details:
• Before potential buyers take their first look at your car, make sure you have the title in your possession — provided the car is paid off. You'll need to sign this over to the new owner.
• Ownership-transfer legalities vary from state to state, so get the details from your local DMV.
• To avoid future liability, notify the DMV that you sold your car. States have different mechanisms for gathering this information — some require you to file a notice of sale after you've signed over the title to the new owner. Make sure you research your local requirements completely and fulfill every condition.
• It's a good idea to fill out a bill of sale, even though it doesn't legally transfer ownership. Some states make this a requirement. A bill of sale lists the car's vehicle identification number, a description of the car, the date of sale, the purchase price, and the names and signatures of both parties in the transaction.
• Make copies of all paperwork.
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Few people would buy a car from a dealer without test-driving it first, and the same is true when dealing with a private-party seller. It may seem odd to hand your keys to a stranger, but the process should run smoothly if you follow these tips:
• It's best to meet potential buyers somewhere other than at your home. When possible, bring along a friend for peace of mind, and make sure family or friends know of your plans.
• You should accompany prospective buyers on the test drive. This is crucial; It gives you more selling time, and it spares you the distress of watching a stranger drive away in your car. When riding along, point out all the features you love about your car, including things you didn't have room to mention in your ad. You've got a captive audience — make the most of your time.
• If the buyer makes a special request to go it alone — and you feel comfortable with that — make a copy of his or her driver's license (assuming you don't have quick access to a copy machine, simply jot down the name, address and driver's license number). Set a time limit on the test drive, and exchange cell phone numbers. Also, confirm that the driver's license information meshes with what you were told when you first made contact.
• Pre-plan a general route that allows the buyer to experience a variety of driving situations during the test drive. Give the buyer the opportunity to drive on the highway and in local traffic.
• Liability insurance coverage shouldn't be an issue. Many insurance policies cover other people who drive your car so long as they're doing so with your permission and have a valid driver's license. Verify your policy's details; if it doesn't offer this protection, ask to see proof of the buyer's insurance. Make sure the driver has full coverage, which includes collision, liability and comprehensive.
Turning Over Your Car to the Buyer
• Don't jump the gun; make sure the sale is secure. If you accepted payment via a cashier's check, follow the steps in the Securing Safe Payment section to ensure it's valid before you sign over the title. If you used an escrow service, wait until it tells you that payment has been received.
• If you're dealing with an out-of-town buyer, arrange for that person to pick up the vehicle, or consider employing a professional delivery service. Delivery services transport vehicles on large hauling trucks. Prices vary depending on the length of the transport and the vehicle's weight. The cost usually starts at about $500. Work out the cost and payment issues with the buyer first.
• In most states, license plates stay with the seller, not the car, though California is a notable exception. If the plates remain with the original owner, remove them so you don't retain a legal tie to the car. If the plates stay with the car, you need to fill out the proper paperwork at the Department of Motor Vehicles so the plates transfer to the new owner.
• Call your insurance company and have the vehicle removed from your policy.
• As long as you were forthright with information about your car in the selling process, you shouldn't be liable for anything once the sale is complete. In most states, the law assumes that private-party sales carry "as is" status. Still, it doesn't hurt to get that understanding in writing. Have both parties sign off before the transaction is complete.
Transferring Ownership
Taking A Test Drive