How to accept payment for your car ?

  During a Sale there are many scams and frauds to watch out for. Always do an in person and meet direct sale.  Please do the sale transactions on your own terms. What if the buyer won’t agree to these terms? Just don’t sell them the car. It’s as simple as that. No legitimate buyer is unwilling to for example - go to a bank with you. Here are your options for receiving payments.

1.) Cash :- Hard,Cold Green Bills (like they say it here) is the most preferred method for payments.

2.) For Bigger payment , it is always easier to meet at a bank and do the sale. You can meet at the buyers bank and complete the sale in different ways :-

  1.    Same Bank -  If you bank at the same bank as the buyer, the banker can transfer funds to your account
  2.    Different Bank -  If your bank is different , He or she can withdraw cash and you can take that or have a certified check made in your name at the branch itself. You may offer to pay the fees for the Certified check, after all, it is being done for your convenience.
  3.  Outside Bank Hours - If the buyer cannot make during regular bank hours, you can ask them to bring you a certified check or a personal check and tell them that they can take the delivery of your used car after the check clears. So the paperwork won’t be exchanged until the check clears and you cash in your account. Make sure that the name and address on the check matches with their drivers licenses.  The Buyers name on the title will also have to be the same. The following day you can deposit the check and wait 2-3 days for it to be cleared fully. This might take 2-3 days,so dont fret, you don't want to be sorry later.
  4. Loan Checks - At times when buyer use a loan check from an Auto Finance company , the way to do it is as described exactly as with checks above. Remember anybody can get a personal check or cashier’s check that may be a fake,  So deliver the paperwork along with the car only after the funds are in your account.

Completing sale :- This the part where you do the signing title and paperwork. Turn over the title only when you have the money in your possession.

Signing the Title :- Make sure to do this carefully as a wrong name in the column can mean a lot of headaches. Usually there is boxes for 'Name of Buyer', 'Name of Seller', Date , Signature of Seller and a box for the odometer readings and the sale price. Seller is also named as 'Owner' in some titles. Basically here you are both the seller and owner of the car. Fill this form up and sign and date it.

 

Filling in NOTICE OF SALE/TRANSFER and canceling your registration : - There may also be a "NOTICE OF SALE/TRANSFER" form attached to the Title itself. You need to detach this and fill it up carefully , sign and mail it to your state's DMV Office. If you don't have such a form , contact your DMV to see the procedure.

 

Doing a Bill of Sale : To be sure that both parties are in the clear , it is always very important to do a Bill of Sale letter , with both your signatures. Some states have a a Vehicle Bill of Sale Template available for download , just use your favorite search engine and download it. The form should contain - Buyer, Seller Name and address , the sale price and the details of the Vehicle like VIN#, make , Model , year and signature columns.  Please make sure that the Vehicle sale terms include a "SOLD AS IS No WARRANTY EXPRESSED or IMPLIED" clause on the Bill of sale to protect yourself. Make two of the Bill of sale document , sign and get it signed on both , you keep one , and give the other to the buyer.

Final Car Inspection : Check your car one more time for any articles , receipts , documents or personal items or tools that you want removed. Check the Glove compartment , in the trunk , space between the seats and under.

Dropping Insurance : Contact your insurance provider to make sure when it is ok to drop the car of your car insurance plan. By law as soon as the title is signed over to the buyer , his insurance should kick in. Usually I wait for one day just to be sure and then call my insurance provider to drop the car that I have sold. Sometimes this can be done online as well.

Now it is time to celebrate ..wooohoooooo !!!!