Buying privately (tips to avoid scams)?

[mrspecter]

I'm getting ready to purchase an M3 from a private seller from out of state and if anyone has any tips I'd greatly appreciate it. This is my first time buying a car from a private seller.

Here's my situation, I live in NY and this seller lives in Alabama and I'm looking to purchase his M3 and then have it shipped here to NY. I'm not going to be able to fly down there and drive it back so everything has to be completed without meeting face to face.

The seller has already filled out a bill of sale and sent it to me.

I have some questions though

1) What's the best payment method? (I've considered wire transfer, bank check or an escrow service)

2) At what point in the transaction should I pay him?

3) How do I ensure that the seller signs over the title to me without screwing me over?

4) Should I tell him to photocopy the title and email it to me?

5) Should I tell him to mail me the title or have it shipped with the car to NY?

6) If I pay him and he does not sign over the title, then what should I do?

[spazzyfry123]

First thing... Have you gotten a PPI?

1) What's the best payment method? (I've considered wire transfer, bank check or an escrow service)

Third party escrow service would be my choice.

2) At what point in the transaction should I pay him?

See above.

3) How do I ensure that the seller signs over the title to me without screwing me over?

See above.

4) Should I tell him to photocopy the title and email it to me?

Could be beneficial, but escrow service should handle that.

5) Should I tell him to mail me the title or have it shipped with the car to NY?

Escrow service.

6) If I pay him and he does not sign over the title, then what should I do?

Escrow service will handle that.


Also, as a side note, there are car shippers that will sometimes handle a lot of your concerns. I know one of our sponsors in an old car club of mine was a car transporter and would handle a lot of the nitty gritty details. A power of attorney of sorts almost.

[///Mbitions]

If the title is free from a lien then an escrow service really is the safest way. No matter how trustworthy people seem you just can’t risk it, and if it’s a legit seller they will also feel the same. They too do not want to hand over their car then realize there’s no money. Id say split the cost of the escrow service

[Mvy]

I did the same on my purchase. I used a local dealer for the PPI to check on the car and id any issues it had. I paid $300 for the PPI. I chose to do an in-person pick up of the car and got the seller to reduce the sale price by the cost of the plane ticket. He picked me up at the airport, we did a test drive and I had the bank check in my pocket. We went to his bank so they could clear my check, while I looked over the title and car. It went well this way, but was only practical because I had the time to fly out and the drive from the sellers location to mine was 8 hours.

[mrspecter]

I've already scheduled the PPI and it is noted in the bill of sale that this transaction is pending on a PPI.

I guess I should look into some escrow services then. Anyone have recommendations?

[mrspecter]

Originally Posted by Mvy

I did the same on my purchase. I used a local dealer for the PPI to check on the car and id any issues it had. I paid $300 for the PPI. I chose to do an in-person pick up of the car and got the seller to reduce the sale price by the cost of the plane ticket. He picked me up at the airport, we did a test drive and I had the bank check in my pocket. We went to his bank so they could clear my check, while I looked over the title and car. It went well this way, but was only practical because I had the time to fly out and the drive from the sellers location to mine was 8 hours.

After he signed over the title, you didn't have to go to the DMV to clear the title, get registration, tags and get plates before driving your car back home? What happens if you get pulled over on the way home with no registration?

[EnVe46]

I've always used my bank and the buyers/sellers bank to handle the sale. Bankers get paid to do this exact thing, no need to pay outside sources in my opinion. I've bought and sold this way numerous times. After PPI, talk to your bank about the process

[Mvy]

Originally Posted by mrspecter

After he signed over the title, you didn't have to go to the DMV to clear the title, get registration, tags and get plates before driving your car back home? What happens if you get pulled over on the way home with no registration?

It would not have been possible to register the car in advance from one state when I live in another. GA requires inspection of an out of state purchase before they will give you the tags. I just left the plate on the car and when I got home dealt with the reg.
The key is only deal with a buyer willing to give you all the needed contact info. Work with them before the sale and be sure you know how to get a hold of them. If they act oddly, then try another seller or use an escrow company. If not, go for it directly. I had plenty of back and forth with the seller before hand, and he was an ER doctor. I didn't get any feels that I needed to be worried about him. He was always responsive and I had all his contact details and home address. After looking at the title, it was clearly legit with no signs of tampering, and signed it was proof the car was now owned by me. I also put together a bill of sale as a word doc releasing liability at the moment of sale. Another piece of evidence proving ownership. The registration of the car doesn't end the instant its sold, and the buyer had paid for it through the year so I had no concerns of getting pulled over on an expired tag. I just left the plate on the car and when I got home dealt with the reg.

[Flying Ace]

1) What's the best payment method? (I've considered wire transfer, bank check or an escrow service)

IMO, bank check or escrow will be the safest. Wires are dangerous, especially if he wants to designate it to a foreign account. Escrow will cost you a few hundred dollars though.

2) At what point in the transaction should I pay him?

When everything is agree upon. Usually the buyer pays first before seller releases title.

3) How do I ensure that the seller signs over the title to me without screwing me over?
In all states, you either own the title or you don't. If a bank has a lien on the car, he doesn't have the physical title with him, and will only have a document that says there's a lien on it.


4) Should I tell him to photocopy the title and email it to me?

Yes, basically that's what you need him to do. Per what I wrote on #3 above, he either has it or he doesn't. Review the photocopy, ensure VIN and person on title all matches with the car and himself.

5) Should I tell him to mail me the title or have it shipped with the car to NY?
Definitely mail!!! In fact, don't fuck around with this, get him to do a overnight fedex envelope with tracking and signature.


6) If I pay him and he does not sign over the title, then what should I do?[/QUOTE]

FBI, local police. He committed fraud. This is why I say use a bank check or escrow company. With a bank check, it's easier to track him down, and places like Walmart won't let you cash a $30k check...lol.

[tdott]

Originally Posted by EnVe46

I've always used my bank and the buyers/sellers bank to handle the sale. Bankers get paid to do this exact thing, no need to pay outside sources in my opinion. I've bought and sold this way numerous times. After PPI, talk to your bank about the process

How would that work? Bank would take the funds from your account and he would give the bank the title?

[mrspecter]

Originally Posted by Mvy

It would not have been possible to register the car in advance from one state when I live in another. GA requires inspection of an out of state purchase before they will give you the tags. I just left the plate on the car and when I got home dealt with the reg.
The key is only deal with a buyer willing to give you all the needed contact info. Work with them before the sale and be sure you know how to get a hold of them. If they act oddly, then try another seller or use an escrow company. If not, go for it directly. I had plenty of back and forth with the seller before hand, and he was an ER doctor. I didn't get any feels that I needed to be worried about him. He was always responsive and I had all his contact details and home address. After looking at the title, it was clearly legit with no signs of tampering, and signed it was proof the car was now owned by me. I also put together a bill of sale as a word doc releasing liability at the moment of sale. Another piece of evidence proving ownership. The registration of the car doesn't end the instant its sold, and the buyer had paid for it through the year so I had no concerns of getting pulled over on an expired tag. I just left the plate on the car and when I got home dealt with the reg.

This is assuming the seller is willing to let you keep his plates right? If he wants his plates back, then I will have no choice, but make a trip to the DMV directly after he signs over the title.

[mrspecter]

Originally Posted by EnVe46

I've always used my bank and the buyers/sellers bank to handle the sale. Bankers get paid to do this exact thing, no need to pay outside sources in my opinion. I've bought and sold this way numerous times. After PPI, talk to your bank about the process

I'll definitely ask the bank about how this process will work? Also, which bank did you use?

[BOOF-M3]

Originally Posted by mrspecter

This is assuming the seller is willing to let you keep his plates right? If he wants his plates back, then I will have no choice, but make a trip to the DMV directly after he signs over the title.

Of course he will want them back. Ship them back to the seller after you hit the DMV which should be the next day that they are open.

[Mvy]

Originally Posted by mrspecter

This is assuming the seller is willing to let you keep his plates right? If he wants his plates back, then I will have no choice, but make a trip to the DMV directly after he signs over the title.

My seller let me keep the plates since his state used a plate by VIN approach (he could not use the plates on another car). Go to the local dmv in the state you dont live in to do what? Try to register the car there and then again in your home state? They wont let you do anything in your non home state registration wise if you are not a resident there. You are making this more complicated than you need to. You just drive home with no plates and dont drive like an ass to avoid getting pulled over.

[DSilk]

Originally Posted by Mvy

My seller let me keep the plates since his state used a plate by VIN approach (he could not use the plates on another car). Go to the local dmv in the state you dont live in to do what? Try to register the car there and then again in your home state? They wont let you do anything in your non home state registration wise if you are not a resident there. You are making this more complicated than you need to. You just drive home with no plates and dont drive like an ass to avoid getting pulled over.

You could drive like Mother Teresa and you will still get pulled over by every trooper that sees that you don't have any plates on your car. You cannot drive or insure a car that isn't registered. Rent a truck and flatbed it home. Don't drive it until it is registered and insured in your name.

[mrspecter]

Originally Posted by Mvy

My seller let me keep the plates since his state used a plate by VIN approach (he could not use the plates on another car). Go to the local dmv in the state you dont live in to do what? Try to register the car there and then again in your home state? They wont let you do anything in your non home state registration wise if you are not a resident there. You are making this more complicated than you need to. You just drive home with no plates and dont drive like an ass to avoid getting pulled over.

I'm obviously not gonna try to register my car in Alabama when I live in NY.
If you think that driving 1000 miles from Alabama to New York without tags and plates is really a smart idea then please try it and let me know.
My reason for going to the local DMV in Alabama would be try to register for an in transit permit so I can drive it back to NY to register it properly.

[Mvy]

Like I said, I didnt have this issue because I was able to keep the plates. Alabama law suggests you would have to give the plates up at the time of sale.

Call the Alabama Dept of revenue and ask what to do then. Alabama law provides that any person acquiring a new or used motor vehicle has twenty(20) calendar days from the date of acquisition to license and title the vehicle.

https://www.support.revenue.alabama....-this-vehicle-

[spazzyfry123]

Talking with a police officer that pulled me over for pretty much this same scenario (albeit a bit more local)... I surrendered the plate to the seller when I bought a car and drove home with no plate. Of course I got pulled over for not having a plate, but he told me this is the correct method. If you drive with something else put in place ("Tag applied for" as an example), that is false and misleading and warrants a ticket. Driving with the seller's plate still on the car actually isn't technically valid (although it will show it is valid in the "system" until the vehicle's registration shows otherwise) because the plate is for the registration to a car that that person no longer owns (again technically).

Short story is the cop told me that the correct and legal way is to drive the car without a plate and provide the bill of sale to the officer that WILL pull you over to prove that you just made a transaction and are on your way home. Pain in the ass? Yes, because from Alabama to New York you are going to be pulled over more times than the car has cubic inches in the motor. But as long as you have proof that you just purchased the car and it is the reason for a lack of plate, they should send you on your merry way (according to the Georgia State Patrol guy that pulled me over in the VW Rabbit I just purchased).