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exchange of car and funds

Joined
1 July 2008
Messages
148
Location
HOUSTON/ SoCal
hey guys how did you do the transfer of the funds and the car (private party)?

what do you think is the best and safest way to do it?

thanks
 
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hey guys how did you do the transfer of the funds and the car (private party)?

what do you think is the best and safest way to do it?

thanks
Once the title work was done, we did a direct wire transfer right from the bank.
Safe and easy, with a $15 fee of course.

Brian
 
When I bought mine the previous owner still owed money on it. That makes it easy IMO. My CU transfered money to his bank, and they in turn release the title to my CU along with all the legal transfer papers. No money actually exchanged hands between us.
 
To protect yourself in case the buyer changes their mind. Do not fill-out the details on the title until you get a bank check. And when you are getting the bank check go with the potential buyer to the their financial institution and stick with them like glue while they are having the institution prepare the bank check. Watch as the teller gives the bank check to the potential buyer and keep an eye on the bank check to make sure the buyer doesn't try to switch the official bank check with a forged bank check. The only time you should look away is when they are entering the pin into the keypad to give them their privacy. Other then that, stick with them like glue. Once you have the bank check in hand then you can either complete the title or give it to the buyer for them to complete the necessary sections.

DO NOT ACCEPT CASH!!!!

Wire transfer would definitely be the easier and preferred route but if I was the buyer, I would not transfer funds before I have the title; and to protect yourself, you shouldn't really alter the title until you have the verified funds. I have heard of a third party escrow company that will hold funds until the transaction is complete and both parties are satisfied but I don't remember were I saw the information.
 
A more important (than money) part is the transfer of registration. Any law enforcement officer would tell you to BOTH go to the DMV and file the papers necessary to transfer ownership. If not, even though you have the money and have signed over the title, the car IS STILL YOURS in the eyes of the state/law. If this new person were to run someone over, rob a bank (all extremes of course) guess who is the registered owner? You get my message.
 
Wire transfer would definitely be the easier and preferred route but if I was the buyer, I would not transfer funds before I have the title; and to protect yourself, you shouldn't really alter the title until you have the verified funds. I have heard of a third party escrow company that will hold funds until the transaction is complete and both parties are satisfied but I don't remember were I saw the information.

Be careful here too as a wire transfer can be rescinded. From a seller's point of view, I wouldn't want to release title until the funds have been transfered and cleared which may take several days
 
Be careful here too as a wire transfer can be rescinded. From a seller's point of view, I wouldn't want to release title until the funds have been transfered and cleared which may take several days

Never knew that or about the consequences of not going to the DMV. Thank you both for the info.
 
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I used a cashiers check when I bought my car. The seller called my bank and verified that the check was legit. After the seller verifed the check was good, he signed over the title to me. Once the title is signed, you are the new owner.

A Bill of Sale is also needed to take to the DMV to show how much you paid for the car and when the transaction took place. Both the seller and buyer signs the bill of sale.

Afterwards, the seller should then contact the DMV and fill out a release of liability to let them know the car was sold. California has this on-line or there is a portion of the title that you tear off, fill out and mail in.

BTW, Most cashier checks have security features like watermarks, colored ink, threads, etc. If someone tries to duplicate it, the duplicate will not reveal the security features.
 
The seller and I went to my bank where I wrote a check. They gave him a cashier's check, then we drove to his insurance company and we did the title transfer right there.

Painless and secure.
 
To protect myself and the buyer, we did this:

1. Seller was out-of-state, so both of us setup a bank account at a "national bank."

2. I wired the money to my new account a few day prior to my arrival, money was posted in the account within 24 hours.

3. Both of us went to the bank, we had a BOS already setup/title/etc. We filled this out and had a personal banker sign it as a witness and also put her notary seal on it.

4. I transfered the entire amount to his account.

Everything went pretty smoothly for this particular transaction
 
All points listed here are excellent things to remember!

But for me buying a used car (especially with a trade) involves a great deal of trust. If I'm even thinking he will pass me fake check or some other scam, how can you EVEN TRUST that he took care of the car he's trading with you???? :confused:

For me buying a used car involves a lot of trust and knowing what the person told you is true.

Precautions are great but a person I can't trust I simply would not buy the car and walk away. That is the BEST advice I can give.



rick
 
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