Perimeter

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?

destaccado

"Is online Escrow giving away all the Seller's rights truly the new standard of doing business"

Not a chance.

Tell him he's welcome to come inspect the car in person.

kahane18

DO NOT SHIP THE CAR UNTIL THE CHECK CASHES

krell

I've heard of escrow being used but there's no way I'd put a car on a trailer without having the funds in hand.

Holdens

THIS!

n2cars

I wouldn't touch this deal with a ten foot pole. Even if the check clears with your bank it doesn't mean the check is legit.

RLNTL3S

Heard stories of a new scam that the check actually cashes, and then a day or two later all of the money is withdrawn and plus some. No freaking clue how this scam works, but it is alive and well.

I would only sell through a dealer in a situation like this. Unless, you walk into the bank with the buyer and have them make out a certified check on the spot.

maspirito

Have the money wired end of story.

Dr.Bill

I would respectfully decline.
Do you know of any dealer that would ship a car on their dime before getting paid?

s2kmunop

Which escrow company is he trying to use? There are only a couple that you can trust. Escrow.com is one of them. I used them when I purchased my GT350R from a private seller. It's no scam, but it does favor the buyer over the seller since they could reject the car when they receive it. It's a simple safe process though. Buyer wires the money into the escrow account. Once funds have been verified Escrow.com lets seller know they can release the car. Buyer either accepts or rejects car. Once accepted the money is wired to the Seller. If rejected, the car needs to go back to the seller before funds are released to the buyer. If you are getting weird feelings about the buyer, then trust your gut. But using a service like Escrow.com is very safe and becoming quite common for long distance purchases. It protects both parties.

Gasman85

OP can you PM me the name or info about this buyer. I have a couple interested parties in my vehicle from Florida and one has mentioned a similar escrow service. Sounded fishy to me.

ONEOFEW

In the past I used escrow to buy and sell cars long distance, in fact if the buyer is going through the trouble of paying for the escrow fees he's probably legit.

Negotiate the amount of time he needs to inspect the car, itemize the details of the inspection, figure out in case something doesn't check out how to handle the situation as well as who pays for the return of the vehicle.

Find a local deanship or a trusted shop which you both are comfortable with, have the car shipped to them.

Escrow is supposed to protect both parties.

evilfij

Dufflebag of cash brought to bank where it is deposited in your account and title is signed over then (so they are not fakes). Or buy/sell with people you know.

chillindrdude

I do like the concept of escrow.

However, as seller, I feel that you obliged a buyer in taking your time to get the car to a ppi, and perhaps efforts to snap specific photos or additional documentation. This is all in providing the most up to date and honest representation of the car.

The cost, arrangement, and liability of transport should be entirely on the long distance buyer, unless specific negotiations have taken place. Once they accept the car, it's an as-is sale. Unless there was clear deception or fraud, the transaction is complete.

I am uncomfortable when escrow favors the buyer. For reasons above and since you as buyer are initiating contact/seeking out. Why should you as seller be on the hook for transporting the car back to you, if the buyer refuses? (Given good faith representation of condition/operability)

Private sales require some semblance of trust in both parties. And I think, when buying from a fellow enthusiast, more satisfying than a dealership transaction. It's still a small community and deceptive practices are swiftly thrown into the light. Perhaps my naivity, but I think the absent influence of commission fosters more transparency.

FCMD

Good fences......make neighbors.

When I wired the funds for my 991.1 and my Trailex trailer both the initial banker who took down the information and the second supervisor who confirmed it each asked me "is this for a vehicle?" and "have you seen the vehicle?" before the funds were released.

If anything, in the case of a private sale, I'd much rather deal with an escrow agency knowing my money was safe.