I'm new to selling cars. What I'm wondering is how does the payment part work? I'm sure a lot of interested buyers don't have $20,000 lying around. Does the buyer need to find their own financing? Or if they do have all that money lying around, how can I get paid safely. By cash, check, money order? How does the exchange actually work? I'm totally clueless on this. Any help or advice will be much appreciated. Thanks!

 

If you know the person and trust them then a personal check works. I pay for my cars with personal checks but its usually through a dealer.

I would suggest a cashiers check which guarantees the funds exist.

 

Just a word of advice. If you don't know/trust the buyer accept only a cashiers check, and tell the buyer the check has to clear before the car can be delivered. Cashiers checks can be forged.

If the deal is done on a weekend, this could create some problem, but if it is done during the week, generally, your bank should let you know if it cleared same day (and sometimes while you are standing there.)

Another option is to accept a bank wire transfer through the federal reserve system. Most banks will offer this service at a fee, and to you, the seller, this is a pretty secure, although slow way to accept money. It takes about one business day, and you have to get a bunch of information to pass to the buyer from your bank to facilitate the transfer.

If you don't know/trust the buyer, don't accept a personal check (without it clearing first) or a Personal ACH transfer (Consumer ACH's have 15 or more days to cancel and reclaim the funds.)

 

Here is my 2 cents.

1. Personal check, only if they are your best friend. If you do it this way and hand the car over, don't sign the title over till the check clears. No need to take take payment this way.

2. Cashiers check, larger banks have a 800 number to call that you can atleast verify that they produced a check with that amount/number.

3. Here is an easy way if it is local. If you both bank at the same bank, you can take the title to the bank and they can do a simple transfer from accounts as you sign the title over.

I would get a generic bill of sale that you can fill in with info/sales price/date-time with vin#, and that you provide no guarantee "AS-IS".

Not sure if you have the title in hand, makes it easier.

Go to your states DMV site and see if any forms are required from you, ie. release of liability!!!

Hope this helps;-)

 

There are few easy scenarios when selling a car, first do you hold title, or is there a lien holder. If you do not own the car outright you need to ensure the lien holder is paid off and you get a release of lien. Actually most finance companies will ensure this happens for your buyer, this is because they want to have a clean title to apply their lien on. This is the best all around, that is you still owe, and buyer's finance company deals with the paperwork.

If you hold a clear title, no matter who, and I mean do not even sell a car to your own mother for anything other cold hard cash, or a certified, watermarked check. I have seen too many relationships destroyed by foolish mistakes in financial transactions. It is far easier to deal in cash, period.

One other thing to remember is that your buyer is typically in a blind trust situation as well. I usually ensure to supply a notarized bill of sale, and offer to handle any paperwork by fedexing as well as supply tracking numbers. Being extra nice does not hurt, but goes a long way towards making a transaction pleasant for everyone.

 

A few years ago I sold a car that I had a loan on and therefore didn't have the title for. For me, it was pretty easy. The buyer simply had the bank check made out to the loan company for the pay-off amount and gave the remainder to me in cash (wasn't very much... ). When the check cleared, the bank sent the title to the new owner and sent me a check for the small amount in excess of the actual pay-off amount. Was about the only painless part about selling that car...

 

To Everyone who replied, thank you. Now for some more questions.
What is a notarized bill of sale?
Where do I get one?
I do own the car so I own the title. Do I need to transfer that title to the buyer somehow?
Lastly, is there any ways of selling that anyone can recommend? Meaning did you use internet forums, classifieds, craigslist, carmax, or all. Are there any to avoid? Any you had particularly good experience with? Much thanks.

 

I had luck on craigslist! Took a while, but eventually the unique buyer came along. You can post it here too, but we will all give you an opinion about the car and the price

I am looking for a MINI! What do you have?!?!?

 

Mine is a 2006 MCS Royal Grey/Royal Grey
Anthracite headliner w/ other anthracite stuff (cupholder, armrest, speedo)
Sport Package
R98 Web Spokes
Cordoba Beige Leather Interior
Multi-Function Steering Wheel
Harmon Kardon Sound
Xenon headlights

It was my dailly driver so I didn't tweak anything.
I did add the JCW Airbox. Nothing modified so the flap is still there.
It has the OEM sport exhaust tips but I still have the original beer cans too.
It's got 13,500 miles on it right now.
No accidents
No track time
No Auto X
I live in Los Angeles
Just don't need it anymore since I'm moving to NYC

Asking: $23000.00

 

Beautiful, I would buy it in a tomorrow, but over my budget

Put it on Craigslist in LA, ASAP!! Be patient

 

Notarized bill of sale is a bill of sale that has been witnessed and signed by a notary public. A notary public is simply someone who is a registered witness. Usually they are at the local town hall. they charge some nominal fee like $4.00 to make a document official.

How you transfer title varies state to state, check on your state's DMV web site, google DMV & your state.

I have used E-Bay, autotrader, craigslist, cars.com. It all is the same, use them all somewhere out there someone is looking for your car. The idea is for your ad to appear in front of them at the moment they are looking. So advertise everywhere, and keep it current. keep reposting your craigslist ad everyweek, and delete the old one. If you use a forum like this bump it occasionally.

It can take time, then again I have posted ads and sold vehicles 2 hours later. Like I said soon or later the person will see your ad.

Good luck, oh and that is one beautiful cooper!