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Selling Car, Need Help On Payment!


jimmyb1901's Avatar
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07-19-09, 10:25 PM   #1  
Selling Car, Need Help On Payment!

I just recently listed my car on eBay, my reserve was met, and the buyer and I have been talking. He is serious about buying the car, but we are disagreeing a bit on the payment method.

I owe just under $6K on a loan for the vehicle, the bidding on eBay went up to $9K. What he wants to do is pay my bank directly the $6K, he would then receive the title and fly out here to pick it up, with a cashier's check for the remaining $3K. Should I feel weary about this setup?

My worries are that after he pays the $6K and receives the title, is there anything to stop him from trying to stiff me on the remaining $3K? At that point he would already have the title and legally own the car. If I tried to keep the car away from him, I am sure he could call the cops and have them force me to hand over the keys.

His reasoning is that he feels odd paying out the full $9K before taking posession of the vehicle. But at the same time I feel odd about him taking posession of the title without paying the full sale price first. I also feel a little strange with taking a cashier's check. I know they are safer than a personal check, but it could still be a fake check, or in certain circumstances they can still bounce.

What I would like to do, is for him to pay my bank the full $9K, have them handle it completely. They would then send him the title, cut me a check for the balance, and then he could come pick the car up.

This is my first car selling experience, I normally did trade-ins, so any advice from someone who has been there done that woud be great. Thanks in advance, James

 
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K1200LTE's Avatar
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07-23-09, 09:29 PM   #2  
Re: Selling on Ebay

I don't know what state you're in, but your loan company/bank can not sell your car to anyone unless it is first legally repossessed. If they receive the payoff from your buyer, they will simply release the lien and send the title to you. This is true regardless of who paid off your loan. You will then need to sign the title and do whatever else is necessary to transfer ownership to your buyer. Getting your buyer to pay off your loan is a good thing for you. If the buyer doesn't finish the transaction you have just received a $6000 gift. Accepting a postal money order or, better yet, American Express checks is very safe. Certified checks from a distant bank should be personally validated by you simply by calling the bank and have them verify its authenticity. To be completely safe, look up the issuing bank and contact them using information from the internet instead of relying on any numbers listed on the check. Your buyer should be willing to give you bank's name and location before you meet with him to settle the deal. You should make copies of your buyer's Driver's license and do an internet search to verify his address and phone number. He needs to prove who he is to your complete satisfaction.

Good luck............

 
jimmyb1901's Avatar
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07-24-09, 03:36 PM   #3  
Thanks for the reply.

I actually talked personally to my bank that the loan is through (citi financial auto), they said that whoever the payment comes from is where the title is sent. They said that if the buyer wants to pay them directly, they will send the title to them. Also, my bank says they will only accept a cashiers check through the mail as a payoff. So, the bank transfer thing is out.

What the buyer and I are doing now is he is coming out here to pick up the car with 2 seperate cashiers checks. One made out to my bank for the payoff amount, one to me for the balance. He hands over the cashiers checks, I hand over the keys. I then mail out the payoff check and my bank sends him the title directly.

He actually did tell me where he's getting the cashiers checks, I did a google search and they look pretty popular in his area, I talked to them already and they told me what safety features I can look for to verify authenticity, and they said I can call them when I get the checks to verify them too. He is getting me a copy of his license, since my bank requires it anyway to verify his mailing address to send the title to. I paid for a background check on him, and his address checks out. So with all that in mind I am feeling better about this transaction.

Any other advice would be welcome.

Thanks again!

 
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07-24-09, 04:21 PM   #4  
Your bank (or the person you spoke to) is full of crapola. Now..if they get a payoff with a bill of sale signed by the owner..maybe.

I'm going to hand you $9k and get a set of keys? No title? No notarized bill of sale? Not in my lifetime....

Hope it works out.


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nap's Avatar
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07-24-09, 04:45 PM   #5  
Posted By: Gunguy45 Your bank (or the person you spoke to) is full of crapola. Now..if they get a payoff with a bill of sale signed by the owner..maybe.

.
not even then. Unless the bank had a POA and could legally sign in the title holders name, they could not endorse the title so it could be transferred.

If they do give the title to the buyer, not endorsed, it would not be the end of the world. Nothing can be done, legally, to transfer the title until the named owner endorsed the title. Owner simply files for a new title with the state.

 
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07-24-09, 05:07 PM   #6  
It wasn't just one person, it was on 2 seperate phone calls with 2 seperate people at citi financial. They both said I have the option of collecting the full sale price and paying them off myself, in that case I would receive the title, I would then have their name removed from the title and then I would sign it over to the buyer. Or they said that the buyer can pay off the loan on my behalf and the title would go direclty to them, cutting me out of the picture. I find it hard to believe that 2 people on 2 seperate occasions would tell me the same thing almost word for word. In any case, I guess I will find out if they are full of crapola if the title comes to me or not.

Hes going to hand me the checks totaling $9K and take posession of the car. This is the way he feels most comfortable with. Considering there is a loan on the car, I can't exactly hand over the title right when he pays. At least this way he will have the car.

Thanks again.

 
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07-24-09, 05:12 PM   #7  
be sure to let us know. Curious minds want to know.

 
K1200LTE's Avatar
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07-27-09, 05:09 PM   #8  
OK, enough

The Citi folks you talked to are incompetent. Not surprising since they've laid off just about anyone with intelligence. They did tell you half a truth. Yes, they will probably send the title back to the folks that paid off the loan. This is because, if the person paying has refinanced your vehicle, like a dealer or finance company, the new lienholder will have the opportunity to process the title with their their lien instead of the Citi lien. What they didn't tell you is that this process in no way changes the fact that you still own the car. The buyer still needs to get your signature on the title before it can be transferred or risk doing time for car theft once you report the theft.

 
D.Rentals's Avatar
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07-28-09, 10:46 AM   #9  
The guy should fly out to you with a payoff check and a cashiers check for the difference, Payoff check made to the bank, difference made out to you.

Go to the bank with the car and a ride home. Do all the paperwork while there.

If no local branch is available. Get all the necassary paperwork from the bank to payoff the loan and authorization to send him the title. Give him a Power Of Attorney to transfer the title when it gets shipped to his address.

Have him fly out, pay you the balance, hand him all the paperwork and a Pre Paid FEDEX envelope. Put all the necassary info in the envelope, Including check and go with him to the fed ex office and mail it off.

 
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