Buying sight unseen, how to fund the transaction? Escrow, wire?


daytrayd

daytrayd

GT Owner
Mark II Lifetime
Apr 23, 2010
557
Austin, TX
Well I've got my car lined up, and I'm ready to put a down payment on it, and pay the rest in December when the vehicle is delivered. I've never done a car transaction online, and while I have talked to and trust the seller (private party), I'm not sure of how best to protect myself. I thought you all could help with the best way to make the transaction.

My worries are about putting a down payment, then the car is stolen or wrecked, and I'm out of my deposit. Or the car arrives not as described, but that is a much less worry as I've done my homework on the car. Its also weird to send money to someone when you dont have the title or car in hand, but I certainly wouldnt give a title to someone without payment. I've heard of escrow services, but dont know of a reputable one and worry about being scammed there as well. The seller advises on a wire, so there is a trail and its a federal offense for wire fraud so the FBI is hunting him down versus the local PD. Makes sense, but please advise.

Cant wait to get the GT in the stable, thanks for your help guys.

Cavan
 
H

HHGT

Guest
Sometimes your better off asking someone in the car business to handle the transaction for you for a fee. Cheap insurance and piece of mind. Alternatively, you can deal with escrow companies to handle the terms & conditions of the sale where no cash is passed until all terms have been met, product delivered and cash exchanged. They could charge up to 5%
 
RPM217

RPM217

2005 white/blue stripe
Jun 18, 2010
1,664
Rye Brook, New York
HHGT said:
Sometimes your better off asking someone in the car business to handle the transaction for you for a fee. Cheap insurance and piece of mind. Alternatively, you can deal with escrow companies to handle the terms & conditions of the sale where no cash is passed until all terms have been met, product delivered and cash exchanged. They could charge up to 5%
Click to expand...
Sound advice here, funny thing is that I bought my GT from Austin and had it shipped up here to NY, the person I dealt with is well known here and on many car boards, he's also an owner of a GT among other cars, and owns a dealership in Austin. Look up Elite Motorsports in Austin, get in touch with the owner SW and tell him what you're looking to accomplish, he can check the car out for you give you good opinion and probably handle the paperwork and finances, not sure what he'd charge you, but he's a fantastic guy, was an absolute pleasure to do business with, and I sent him funds for the car I purchased site unseen, and have to admit that when I saw the car, it exceeded my expectations!!! Good luck with the purchase, I'm sure that in the end, you'll be as pleased as I am!!!
 
J

jaxgt

GT Owner
Mark IV Lifetime
Jul 12, 2006
2,811
I would say in brief - do NOT do this as described. If you do not truly know the person personally, AND the car has not been throughly inspected by an EXPERT, PASS.

You need to definitely have an expert inspect it (Shadowman, GT Guys, Kendall) first. Essential. They can also view the title when they see the car.
Then, if it checks out - fly to whereever and hand a cashiers check for car and title. Simple.

Alternatively, maybe pay a bit more, but buy from one of the 3 forum dealers for piece of mind - Marv Rose, Shelby, or Bernie. I have bought sight unseen from Marv (happily) and would not hesitate from the other other two.

Good luck.
 
Kingman

Kingman

GT Owner
Mark II Lifetime
Aug 11, 2006
4,072
Surf City, USA
jaxgt said:
I would say in brief - do NOT do this as described. If you do not truly know the person personally, AND the car has not been throughly inspected by an EXPERT, PASS.

You need to definitely have an expert inspect it (Shadowman, GT Guys, Kendall) first. Essential. They can also view the title when they see the car.
Then, if it checks out - fly to whereever and hand a cashiers check for car and title. Simple.

Alternatively, maybe pay a bit more, but buy from one of the 3 forum dealers for piece of mind - Marv Rose, Shelby, or Bernie. I have bought sight unseen from Marv (happily) and would not hesitate from the other other two.

Good luck.
Click to expand...

Sound advise that should be heeded without question. If not, please save yourself the embarrassment and do not air the dirty laundry of a transaction gone south on this Forum.
 
S

shelbyelite

PERMANENTLY BANNED
May 10, 2007
1
If you want, give me a call. I will be happy to discuss this with you and give you some tips. May I ask who the car is coming from? Is he known here on the board?
I can be reached anytime at 1-870-931-8004
 
Kayvan

Kayvan

GT Owner
Jul 13, 2006
4,782
Cavan!

Ok now we have 3 kavans on this site
 
Nardo GT

Nardo GT

Well-known member
Jul 15, 2006
2,300
Texas
When I have agreed to buy a car a distance away I always just fly there the next day and look at the car myself with funds with me. So far about 50% were as described ( individuals and dealers alike, both can mis-describe).
 
M

MNJason

GT Owner
May 14, 2010
2,097
San Diego
Im always amazed that someone would spend more than $500 on a car sight unseen. I mean, really. Why? Even if 3 other people tell you its perfect, what exactly does that mean?

I guess if you are a billionaire and you are just adding to the collection...........
 
Magic

Magic

GT Owner
Mark IV Lifetime
Mar 13, 2010
742
Fredericksburg, TX
Even though I'm halfway around the world bought my car sight unseen from Shelby (Elite Autos) and had no problems with transaction or car not being as described. Would give him as a recommendation to anyone who has to buy a car this way!

shelbyelite said:
If you want, give me a call. I will be happy to discuss this with you and give you some tips. May I ask who the car is coming from? Is he known here on the board?
I can be reached anytime at 1-870-931-8004
Click to expand...
 
MK2_GT

MK2_GT

GTX1 Owner
Mar 25, 2006
795
Call Shelby 100% is my advice. I have done deals with him ( and so have many others here ) and he has a great reputation. Save yourself a potential headache and let an expert help you out.
 
daytrayd

daytrayd

GT Owner
Mark II Lifetime
Apr 23, 2010
557
Austin, TX
Thanks for the responses everyone.

The car has been inspected by the Ford dealership. A walk around, relative engine compression, and power balance test was performed. The seller is a member here, although I forget his tag, Az something. He had the car listed a month or so in the classifieds, it was the blue car with a whipple.

I would like to see the car in person, however, I can not make it out there till next month and there are other interested parties. Thats why I had the inspection done, to verify its condition and to not lose the car to someone else. I had spoken with Kendall, but he is not available and never heard back from the GT guys, the seller preffered not to use shadowman as he was having his own issues to deal with at the time.

The report from the dealership was an immaculate GT, with a 100% healthy engine. I've scoured the internet looking for a car on the sponsored sites and elsewhere, but have yet to find what I'm looking for (higher mile blue GT under $150k). No, I'm not a billionaire, far from it, but have done enough research to know the car and previous owners, along with a third party opinion, to buy the car without being there in person. I was looking for the best method to make the transaction. There is a lien on the title, so that needs to be dealt with accordingly. I may have to put a down payment to hold the car till I can fly out there, thats what I'm thinking at this point.

Shelby, I will call you tomorrow for advice if thats ok? Sometime around 11ct. I appreciate your help in this matter.

Kayvan, my buds in highshcool used to call me K-Van because none of the teachers could say Cavan (ka-vin). Are there other Cavan's on the board? I've yet to meet one, it'd be destiny if there were three on here.
 
S

shelbyelite

PERMANENTLY BANNED
May 10, 2007
1
Sure, call me anytime. I will try too help
 
T

tmctguer

GT Owner
Jan 11, 2010
129
dana point, CA
A couple of thoughts………you are about to buy a car that costs between $125,000 - $180,000. Don’t be afraid to spend $750 on an airline ticket to personally inspect this vehicle. You are paying as much for this car than some people pay for their house. Unless you can afford to walk away from $125,000 - $180,000 or can afford to hire attorneys to sue for a refund, don’t buy a car like this without seeing it & inspecting if first.
Here are a few steps I’ve used to buy cars:

1). Get the VIN and do a CarFax to see when it was smogged, if it was wrecked, used as a leased car, check for liens, etc..

2). Have the seller fax a copy of the title so you can confirm who owns the car. If you find out the car has a lien on it, I STRONGLY suggest you hire an attorney, or an escrow company, or a local dealer to perform the transaction for you for a modest fee.

3). Contact a shipping company to obtain a quote for shipping the car from the seller’s location to your location. Contact your insurance company and let them know what you might be purchasing to arrange for temporary coverage. Determine if/where you can temporarily store the car near the seller’s location in the event you DO buy the car.

4). Download from the internet a copy of a Purchase & Sale agreement for a vehicle. It spells out mileage, seller’s warranty (or lack thereof), buyer & seller responsibilities, etc.. This document might be all you have to legally depend on if the sale goes south.

5). Find out what bank the seller uses (Bank of America, Wells Fargo, etc.). go online and open up an account at the bank used by the seller.

6). Wire transfer the purchase price from your current bank account into the new account you just opened. This usually takes a few days for a bank account to be processed and ready for bank-to-bank transfers.

7). Fly to the seller’s location. Arrange to meet the seller for a pre-purchase inspection of the car. Do it yourself if you are familiar with these types of cars or hire someone to perform it for you. While there, inspect the title, service records, and anything the seller has to describe the car’s provenance. Have the seller take you on a test drive so you can experience the car actually operating on the road.

8). If the car is what the seller purports, fill out the Purchase & Sale agreement jointly with the seller. Don’t sign it unless there is a notary present.

9). Arrange to meet the seller at a branch of his/your bank. When he arrives, use the bank’s notary to notarize the purchase & sale agreement. Have the seller sign the title over to you, then walk over to a teller and transfer the purchase price from your account into the seller’s. Have the bank make copies of all documents so both of you leave with copies of the paperwork of the transaction. Leave with the keys and drive the car to the place you found where it can be safely stored until you get the transport company to ship it.

10). Fly home and wait for the transport company to arrive.
 
N

Neilda

GT Owner
Oct 19, 2005
3,559
London, UK
Whatever you do, make sure everybody who has contact with your car carries the correct insurance for themselves.
 
MK2_GT

MK2_GT

GTX1 Owner
Mar 25, 2006
795
tmctguer said:
A couple of thoughts………you are about to buy a car that costs between $125,000 - $180,000. Don’t be afraid to spend $750 on an airline ticket to personally inspect this vehicle. You are paying as much for this car than some people pay for their house. Unless you can afford to walk away from $125,000 - $180,000 or can afford to hire attorneys to sue for a refund, don’t buy a car like this without seeing it & inspecting if first.
Here are a few steps I’ve used to buy cars:

1). Get the VIN and do a CarFax to see when it was smogged, if it was wrecked, used as a leased car, check for liens, etc..

2). Have the seller fax a copy of the title so you can confirm who owns the car. If you find out the car has a lien on it, I STRONGLY suggest you hire an attorney, or an escrow company, or a local dealer to perform the transaction for you for a modest fee.

3). Contact a shipping company to obtain a quote for shipping the car from the seller’s location to your location. Contact your insurance company and let them know what you might be purchasing to arrange for temporary coverage. Determine if/where you can temporarily store the car near the seller’s location in the event you DO buy the car.

4). Download from the internet a copy of a Purchase & Sale agreement for a vehicle. It spells out mileage, seller’s warranty (or lack thereof), buyer & seller responsibilities, etc.. This document might be all you have to legally depend on if the sale goes south.

5). Find out what bank the seller uses (Bank of America, Wells Fargo, etc.). go online and open up an account at the bank used by the seller.

6). Wire transfer the purchase price from your current bank account into the new account you just opened. This usually takes a few days for a bank account to be processed and ready for bank-to-bank transfers.

7). Fly to the seller’s location. Arrange to meet the seller for a pre-purchase inspection of the car. Do it yourself if you are familiar with these types of cars or hire someone to perform it for you. While there, inspect the title, service records, and anything the seller has to describe the car’s provenance. Have the seller take you on a test drive so you can experience the car actually operating on the road.

8). If the car is what the seller purports, fill out the Purchase & Sale agreement jointly with the seller. Don’t sign it unless there is a notary present.

9). Arrange to meet the seller at a branch of his/your bank. When he arrives, use the bank’s notary to notarize the purchase & sale agreement. Have the seller sign the title over to you, then walk over to a teller and transfer the purchase price from your account into the seller’s. Have the bank make copies of all documents so both of you leave with copies of the paperwork of the transaction. Leave with the keys and drive the car to the place you found where it can be safely stored until you get the transport company to ship it.

10). Fly home and wait for the transport company to arrive.
Click to expand...

Rick, this should be stickied, good job on that.
 
Kayvan

Kayvan

GT Owner
Jul 13, 2006
4,782
Hi Cavan,

Yes, the other Kayvan has a handle like KJ.. something.

RE: GT

There are 25+ GTs for sale at any given time, and blue is not uncommon ( v. yellow, heritage, silver).

I would wait; the lien makes me itchy.

YOU have the money...all sellers will come to you eventually. I think Soroush is in Austin, btw.
 
N

nota4re

GT Owner
Mark IV Lifetime
Le Mans 2010 Supporter
Feb 15, 2006
4,281
I too would recommend that you engage help from Shelby. I would really trust him a lot... as well as the experience he brings.
 
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