GT3 private party sale - Is Escrow a new scam ?
07-17-2019, 07:20 PM
#31
Race Director
You need a cashier’s check from a big bank. Once he tells you he has the cashier’s check you call the bank to confirm they made a check out for that amount. He either comes to look at the car first, or accepts the transaction as is.
07-17-2019, 07:29 PM
#32
Yeah it's pretty absurd to have a return policy on a car like this. Sale should be as is. It's on the buyer to do due diligence before the car moves. Too much risk involved with transporting a car. It's your car until the title transfers. Too much liability. If they're too busy to see the car then maybe they should just look locally.
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Napoli (07-17-2019)
07-17-2019, 07:36 PM
#33
07-17-2019, 07:37 PM
#34
Go to the seller- inspect the car, make sure deal is legit- meet the seller at the bank. if all is good- call your bank to wire funds- wait a bit with the seller- go get lunch and learn about the car- wire arrives and you take the car.
07-17-2019, 07:38 PM
#35
Instructor
Selling a GT car, was contacted by a buyer from FL on the phone, seemed legit, asked right questions, agreed on price, finances proceed.
Long story short, Buyer sends me an email from an escrow service which was never mentioned before and the stipulation is that the money will not be released to the seller until the car is transported, arrives and buyer fully inspects it and only upon buyer's command is any money released. All returns or refusals are the seller's obligation to pick up and transport.
I had represented the car with full service history and open to PPIs beforehand but I have always been clear that all funds must be wired before car or paperwork is released.
Buyer rebuttalled that Escrow is the "New Norm" that CarGurus and all professionals are using, it is now regular and expected in the industry.
Is online Escrow giving away all the Seller's rights truly the new standard of doing business or has your Spidey Sense been piqued by this Florida buyer?
Long story short, Buyer sends me an email from an escrow service which was never mentioned before and the stipulation is that the money will not be released to the seller until the car is transported, arrives and buyer fully inspects it and only upon buyer's command is any money released. All returns or refusals are the seller's obligation to pick up and transport.
I had represented the car with full service history and open to PPIs beforehand but I have always been clear that all funds must be wired before car or paperwork is released.
Buyer rebuttalled that Escrow is the "New Norm" that CarGurus and all professionals are using, it is now regular and expected in the industry.
Is online Escrow giving away all the Seller's rights truly the new standard of doing business or has your Spidey Sense been piqued by this Florida buyer?
07-17-2019, 08:05 PM
#36
People ask me why I prefer to buy cars through dealers, whether as a pass through from a private seller or direct from a dealer. This is why. There is a bit more protection when it comes to the physical financial transaction. Car is oftentimes in worse condition, but it still is better than losing all of that money.
07-17-2019, 08:09 PM
#37
Rennlist Member
Escrow may be fine but as seller, I would pick and set up service and not use service requested by buyer. Too easy to make web pages look the same. would also not do 100%, maybe 20/80 cash/ escrow.
If other party is too reluctant too meet in person, I would probably wait on next buyer or sell to dealer. Rather take a 10k hit at dealer vs risk of fraud at $150k.
If other party is too reluctant too meet in person, I would probably wait on next buyer or sell to dealer. Rather take a 10k hit at dealer vs risk of fraud at $150k.
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Perimeter (07-19-2019)
07-17-2019, 08:10 PM
#38
Rennlist Member
Right, that only works if you do the deal in person. We are talking about having a car shipped sight unseen. I don't typically trust any seller to buy a car sight unseen anyways, but if you were inclined to the roll the dice, you also don't want to risk getting screwed on the money side of it too. Hence why escrows are used to protect both parties for transactions like this.
07-17-2019, 08:15 PM
#39
Banned
Nothing wrong with a trusted third intermediary helping out the deal, be it a dealer or an escrow business. The problem with that escrow.com example is that the deal stipulations and conditions for releasing the money to the seller are extremely biased against him. Who ships their car across the country then waits for buyer to inspect it and like it before money is released? And if buyer doesn't like it or simply changes his mind for whatever reason, then seller is on the hook for transporting his own car back?! Right. Not to mention that risk and liability for the initial transport should be fully with the buyer as he should be transporting what is already his own car, not the seller's.
How does buying/selling through a dealer work exactly? How much does it typically cost?
How does buying/selling through a dealer work exactly? How much does it typically cost?
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Perimeter (07-19-2019)
07-17-2019, 08:22 PM
#40
Rennlist Member
Nothing wrong with a trusted third intermediary helping out the deal, be it a dealer or an escrow business. The problem with that escrow.com example is that the deal stipulations and conditions for releasing the money to the seller are extremely biased against him. Who ships their car across the country then waits for buyer to inspect it and like it before money is released? And if buyer doesn't like it or simply changes his mind for whatever reason, then seller is on the hook for transporting his own car back?! Right. Not to mention that risk and liability for the initial transport should be fully with the buyer as he should be transporting what is already his own car, not the seller's.
07-17-2019, 08:29 PM
#41
Rennlist Member
Why anyone would want to purchase a car without seeing it in person is beyond me. If you don't have the time & you're too busy then just wait until you can.
I've flown across country before to look at a $20k car. It's not like a 991 GT3 is one of a kind car. If a buy can pay cash for a $150k+ car then he/she can fly out to see it in person.
Risk on both sides to a blind transaction escrow is for houses. Cash is for cars.
Like the previous resident of South Florida said...
I've flown across country before to look at a $20k car. It's not like a 991 GT3 is one of a kind car. If a buy can pay cash for a $150k+ car then he/she can fly out to see it in person.
Risk on both sides to a blind transaction escrow is for houses. Cash is for cars.
Like the previous resident of South Florida said...
07-17-2019, 10:03 PM
#42
Why anyone would want to purchase a car without seeing it in person is beyond me. If you don't have the time & you're too busy then just wait until you can.
I've flown across country before to look at a $20k car. It's not like a 991 GT3 is one of a kind car. If a buy can pay cash for a $150k+ car then he/she can fly out to see it in person.
Risk on both sides to a blind transaction escrow is for houses. Cash is for cars.
Like the previous resident of South Florida said...
I've flown across country before to look at a $20k car. It's not like a 991 GT3 is one of a kind car. If a buy can pay cash for a $150k+ car then he/she can fly out to see it in person.
Risk on both sides to a blind transaction escrow is for houses. Cash is for cars.
Like the previous resident of South Florida said...
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Perimeter (07-19-2019)
07-17-2019, 10:32 PM
#44
RL Community Team
Rennlist Member
Rennlist Member
Why anyone would want to purchase a car without seeing it in person is beyond me. If you don't have the time & you're too busy then just wait until you can.
I've flown across country before to look at a $20k car. It's not like a 991 GT3 is one of a kind car. If a buy can pay cash for a $150k+ car then he/she can fly out to see it in person.
Risk on both sides to a blind transaction escrow is for houses. Cash is for cars.
Like the previous resident of South Florida said...
I've flown across country before to look at a $20k car. It's not like a 991 GT3 is one of a kind car. If a buy can pay cash for a $150k+ car then he/she can fly out to see it in person.
Risk on both sides to a blind transaction escrow is for houses. Cash is for cars.
Like the previous resident of South Florida said...
But ... had a fellow RL lay eyes on it first, and it was a through a dealer. But there's nothing wrong with not seeing it in person. In theory, at least.
07-18-2019, 12:38 AM
#45
Rennlist Member
Thanks,
Yes it was Escrow.com but the terms completely favored the Del Ray, FL buyer - I countered with an offer to buy a first class plane ticket for the buyer after the PPI - but he repeated his response of "no time"
I'm old enough to have seen enough stories of dissappointed buyers who buy high end exotics sight unseen across the country and it ends up as a clusterf* all the way around - nobody ends up happy
I declined the sale but am open to new ideas if the industry is changing, just like I welcome PPIs
Yes it was Escrow.com but the terms completely favored the Del Ray, FL buyer - I countered with an offer to buy a first class plane ticket for the buyer after the PPI - but he repeated his response of "no time"
I'm old enough to have seen enough stories of dissappointed buyers who buy high end exotics sight unseen across the country and it ends up as a clusterf* all the way around - nobody ends up happy
I declined the sale but am open to new ideas if the industry is changing, just like I welcome PPIs
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Agent_Orange (07-18-2019)