Selling a Vehicle to Private Party

[Route246]

We live in California but this could be generalized to any state.

Simple question. What advice and pointers do you have when selling a high-end vehicle to a private party?

Background:

• I've sold a car to a close friend so the trust and safety issue was not present, DMV transfer handled at local AAA office but this car is special
• Trading in at a dealer is expensive but the ease of transaction adds value to getting less than what you expect
• How do you handle test drives with strangers?
• How do you exchange $$$ for title in a safe and easy manner?
• California has a release of liability form, is this sufficient?
• How do you prevent getting scammed, carjacked, etc.?

I have a semi-exotic with very low mileage (5K miles), pristine paint, always garaged, never driven in the rain,etc. and street price above $100K. It is detailed, sealed, and looks showroom condition. It has clean title, clean CarFAX, modded and tuned with CARB-compliant parts, ECU tuned with Cobb tuner which can revert to factory tune to pass strict CA smog testing. I'm thinking of selling it to upgrade to something more exotic. It is stored in the garage and most neighbors don't even know what it is. This particular car in this configuration only appreciates in value so it is like a collectable asset. I don't disclose what it is because I want to maintain anonymity so please don't ask. I really don't want to part with it but the wife told me I can't have more space in our garage so if a new one comes this one will have to leave.

This car cannot be traded in for anything reasonable and needs to be sold private party to the Bring-a-Trailer crowd. I just don't want to deal with hassles, scams or worse. I am open to paying a trusted agent to facilitate, I just don't know where to start.

 

[Car-Guy]

Go with them when they take a test drive and demand a cashiers check and still get a copy of their identification. Don't sign the title until the check has been deposited and accepted by your bank. It's easy to do where I live... The county clerk and my bank are two blocks apart.

 

[street]

Go with them when they take a test drive and demand a cashiers check and still get a copy of their identification. Don't sign the title until the check has been deposited and accepted by your bank.

Yep, just did that same thing a few months. Great advice.

 

[EarlyandLate]

When my dad sold his classic Rolls, he arranged to do the transfer at his bank with one of the bank officers. Good thing he did it that way. The buyer shocked my dad and the banker by opening up a brief case filled with bundles of $100 bills. A bank clerk was called in to count the cash and verify that it was not counterfeit.

 

[Pointby2]

When I sold my GT3, the buyer sent a $1,000 deposit to hold the car. We met at their credit union where I could see that they cut a cashiers check for the full balance due. (Too easy to fake a cashiers check) IIRC, they didn't even test drive it until we met at the credit union. I rode along for the test drive.

 

[ERD50]

Cashiers Checks can be faked and you won't know until much later as it goes through the clearing process and the originating bank says "Nope, we have no record of that account!).. I would only accept a cashiers check if I was at the bank that issued it, and I'd have the bank confirm it, and I'd have it deposited to my account at that bank (open one just for this purpose if needed), so the w/d and deposit goes through the same bank.

OP might be better asking this question on one of the collector car forums, they'd deal with this all the time.

 

[braumeister]

I've done this twice. Met the buyer at their bank. They took the cashier's check from the teller, turned and handed it to me. No problem.

 

[Route246]

Cashiers Checks can be faked and you won't know until much later as it goes through the clearing process and the originating bank says "Nope, we have no record of that account!).. I would only accept a cashiers check if I was at the bank that issued it, and I'd have the bank confirm it, and I'd have it deposited to my account at that bank (open one just for this purpose if needed), so the w/d and deposit goes through the same bank.

OP might be better asking this question on one of the collector car forums, they'd deal with this all the time.

I believe in person at a bank is what I need to arrange. It is a hassle but probably the best and safest way to assure the paper is good.

When I sold my GT3, the buyer sent a $1,000 deposit to hold the car. We met at their credit union where I could see that they cut a cashiers check for the full balance due. (Too easy to fake a cashiers check) IIRC, they didn't even test drive it until we met at the credit union. I rode along for the test drive.

GT3 is one of my target cars now. I'm negotiating for a build slot as we speak for GT3, Turbo and GTS in that order with multiple stores. These stores have some real difficult staff to work with. Curious, why did you part with your GT3? Did you upgrade?

When my dad sold his classic Rolls, he arranged to do the transfer at his bank with one of the bank officers. Good thing he did it that way. The buyer shocked my dad and the banker by opening up a brief case filled with bundles of $100 bills. A bank clerk was called in to count the cash and verify that it was not counterfeit.

I'm used to large amounts of cash from a previous life, but getting the bills checked out does require one of those machines.

 

[Pointby2]

GT3 is one of my target cars now. I'm negotiating for a build slot as we speak for GT3, Turbo and GTS in that order with multiple stores. These stores have some real difficult staff to work with. Curious, why did you part with your GT3? Did you upgrade?

I bought a 2005 996 GT3 in 2007. Those cars were pretty raw. I had it for five great years of daily driving and track day use. I finally got tired of doing track days and that was the end for me. The newer cars are easier to live with but still you worry about where you park and keeping it safe. I replaced it with a Focus RS which really flies under the radar and is still fun, but nothing like the GT3.

Good luck on negotiating for a new GT3!

 

[Route246]

I bought a 2005 996 GT3 in 2007. Those cars were pretty raw. I had it for five great years of daily driving and track day use. I finally got tired of doing track days and that was the end for me. The newer cars are easier to live with but still you worry about where you park and keeping it safe. I replaced it with a Focus RS which really flies under the radar and is still fun, but nothing like the GT3.

Good luck on negotiating for a new GT3!

That is great you were able to daily drive it. The 996 GT3 is very raw with a lot of race car characteristics but it is a beast on the street and those who know what it is have a true appreciation for the engineering. I'm getting worn down with the stores around here. They act like they are doing me a favor but the markups are crazy and I can't bring myself to sign up, yet. I'm also reluctant to commit to a turbo/hybrid. The sound is not inspiring, either. But, having never owned one the allure is also there.

 

[Ronstar]

I’ve sold 2 by cash. 1 in Illinois, 1 in Arizona. I went along as the passenger on a test drive for both. I used online forms for vehicle transfer. I wasn’t concerned about a scam or carjacking- I knew the buyers names ahead of time and did my own background checks.

 

[freedomatlast]

No checks of any kind. No cash. Too easy to counterfeit either one. You can't depend on the banks to catch counterfeits right away and you'll be the one that loses, not the bank.

Have them send a wire transfer to an account you establish at your bank solely for this purpose. Immediately after the deposit is made, sweep the funds to your other account at the same bank. Only then transfer the title.

I keep an account open at my bank with $5 in it exactly and only for this purpose.

I've done this more times than I can remember . One was over six figures. No problems.

Better yet, keep it and either build, buy or rent a garage for it. I just bought a garage in February so I can keep more cars under roof for this exact purpose. Wanted more, but didn't want to give any up. Problem solved.

And yes, DW always gets one spot in the heated attached garage at our primary residence. I've never asked her to give her spot up because of my car addiction.

 

[pb4uski]

I've done two such transactions over the last decade.

First one, we met the buyer at my local bank in a strip mall with lots of people around. Buyer checked out the car thoroughly and then test drive. I think I rode in the back seat but don't remember. Then we went into my bank, buyer paid cash, I deposited the cash and then signed the title gave him the keys and paperwork and we were done.

Second one, more recently. Buyer had come to my house to check out the truck and travel trailer. He didn't ask for test drive. Later, met him at his bank and he got bank check made out to me, I deposited to my brokerage account via my phone and then we followed buyer to his place, set up the travel trailer and went over things, signed paperwork and went out separate ways.

 

[folivier]

Are there any consignment places nearby?
You'll pay 10% or so but they will do all the legwork. Just make sure either their or your insurance covers the car while there.

 

[The Cosmic Avenger]

I've done this twice in the last 20 years. (Unfortunately, both my parents' cars, as they both had decent cars when they passed.) The first time I posted on Craigslist and in the Washington Post classifieds, but I lucked out, the first serious inquiry was from someone who worked at another institute at NIH, and they emailed me from their .gov work address, so I had no worries about verifying their identity. (A background check is required for all Federal employees, including contractors, to be granted access to government buildings and computer networks.) I took a personal check from her.

The second time I posted on a bunch of websites (Cars.com, Craigslist, Facebook, and local online groups). I met people in front of the police station about a mile from us, which has cameras out front, and planned on texting my spouse a photo of their license if I had any reservations, which I didn't, as most inquiries came from the local groups and I could see a posting history for them. The people who eventually bought the car actually lived quite close, and in our area I was able to see the property records for their house online. Since I knew they owned a house and where, I again wasn't (too) worried about their check.

tl;dr version, if you can sell locally you might be able to verify more about the buyer through their posting history or mutual acquaintances. If not, there have been plenty of good tips for protecting yourself. A buyer might balk at paying up front and waiting for the funds to clear to pick up the car, but I would point out that I have a long posting history in community groups, and have occasionally mentioned my local volunteer activities, so it would be trivial to verify who I am and where I live, so if you are in a similar position (and you may not be), you can use that to insist on their trust when paying and waiting for the funds to clear.

 

[OddGuy]

Bring-A-Trailer or high end auctions sells vehicles without test drives.

Consignment is also great to eliminate you dealing directly with the public.

Only accept funds via wire transfer.

 

[punkinhead]

For big ticket items I'll only accept a wire transfer. Anything under $20K or so I'll only accept cash. I've never sold a rare or expensive car but I doubt I'd allow a test drive. I'd let them ride in the passenger seat while I showed them that it ran fine. When I sell airplanes I go along in the right seat so I can take control if necessary. For motorcycles I require payment first then will let them test ride it with the understanding that I'll refund them if they bring it back in the same condition they took it in.

 

[OddGuy]

I've sold multiple motorcycles, no test rides.

I sold a $90,000 car on Bring-A-Trailer, no test ride. A couple less expensive sports cars were sold long distance, the buyers wired money and sent a truck to pick up the ride.

For high end vehicles, it's best to advertise on a national platform. Long distance deals are easy - they may ask you to take the vehicle to high end shop of their choice (that they pay) for a pre-purchase inspection, or they may be fine with photos and video. Then they'll send you a wire transfer, and you FedEx the title. Then you wait for a truck they arrange to pick up the vehicle.

 

[Scrapr]

Bring-A-Trailer or high end auctions sells vehicles without test drives.

Consignment is also great to eliminate you dealing directly with the public.

Only accept funds via wire transfer.

Agreed. BaT is great. enthusiasts will vet the car & buyer during the auction period. Be ready with excellent pictures down to the smallest detail. Then answer questions quickly as they come up. Be open about any flaws or "improvements". It's really a great site. typically the last hour of the auction gets intense

 

[CRLLS]

I did a similar sale. My bank told me that every form of payment is reversible, even cashier's checks and wire transfers if the buyer shows evidence of the seller committing fraud. I don't know what that evidence would be. My sale was a bit more complicated due to it being an international sale and he was sending a truck to pick up the vehicle. I accepted a check from his bank, drawn on a US bank, not a cashier's check. I spoke to his personal banker on the phone and we discussed all of the check's security features to look for and the names that would be signing the check etc. It went smoothly, thank goodness.

My sale was only in the low 5-digit figures not a 6 digit that you are expecting. Good luck.

 

[bobandsherry]

Interesting people say to require a wire transfer. Then put yourself into that position and think if you'd wire money to someone you didn't know. Once in their account you have limited recourse. Trust required by both parties.

My suggestion would be to meet at their bank, have them purchase a cashier's check or certified check in your name from their account at the bank. Exchange cashiers or certified check at time of title. You could also use an Escrow Service, would cost a few bucks but then they can handle the payment and title exchange without risk to either party. This may be a service to look into: KeySavvy Is Better Than Escrow for Car Sales

Good luck.

 

[folivier]

Don't know of any offhand but there are escrow companies that hold the funds until after a sale is completed.

 

[RetiredHappy]

Turn it over to Sothebys to auction for you. It is a safe way to get top dollars. I would never do a private sale because my life is worth more than the car. There are too many bad actors out there.

 

[ModestNestEgg]

I say this as a vehicle buyer, not a seller, but the last two vehicles I purchased have been through either friends of relatives or relatives of coworkers that I trusted. Both vehicles have turned out very well, and this gave more vetting to both the buyer and seller versus just a random stranger where you have no idea who they are.

I would suggest spreading the word to people that you know first and then some of these issues are much less of a concern.

As a buyer, I was so glad to buy a vehicle from someone that was known and I didn't have to deal with a dealership's shenanigans. You might find some people are in the market for a vehicle but don't want the hassle of buying one. And you and the buyer can both come out better as you can likely sell it for more than the trade in value and the buyer will be getting a better deal than if they bought it at a dealership.