Hello,

Didn't know who to ask, so posting here.

I have a 911 that I want to sell. I put up the add and get contacted by a person (in another city, about 250 miles away), who says he works for this dealership ! I called the dealership (it is a exotic car used dealership) and they say yeah he buys cars for us!

The person sends Lemon Squad for inspection and wants to schedule transport. The car has a lien, and the person says they will send wire confirmation later in the night.

Being a dealer doesn't sound shady, but getting payment after the car is on the transport and paper are signed, is that normal?

 

I wouldn’t let my car go before I got paid for it, dealers certainly don’t.

 

True, and I asked if he can send me the confirmation for transportation agreement. Says will be available after delivery

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Looks like they are part of a company that owns franchised new car dealerships (Mazda) so they are probably not trying to steal your car or run some scam. I would just ask for money at time of pickup, and in writing that they will pay your lien within 10 days...it will be a PITA to chase them for money if they take their time paying you. Also, I would insist on all paperwork and other promises made in writing come from the dealership via their corporate email address and not this middleman who contacted you.

 

I would never let the car leave my sight without payment first. I traded my last couple of cars to my dealer, they always have the check / wire to me before they pickup (or at least at the time of pick up)

 

The fact that you have a lien may be different than if you owned it outright. They will probably want the title before they release the balance to you.

 

I have sold this way. I get a check for the proceeds over the loan, and they pay the loan. If you are on Southeaster PA, I can give you their name.

 

"schedule transport" probably does not mean the car will get picked up immediately. The pick-up schedule could be several days out which gives time to work out all the paperwork & payment. That would be my assumption. Good luck!

 

This is the issue. The dealer will have to pay off the lien and probably wants the title released before they disburse funds to pay you off. That’s not an uncommon practice (I’d say it’s probably standard) particularly for out of town dealers (even more so for out of state).

If you owned the car outright, then yes - you ought to get full payment up front and then send the car with the title in the glove box.

I’ve had situations where out of state dealers insisted on having the physical title in hand before paying my end - that situation got pretty testy before they finally paid me. A title release can happen within a few days. Receipt of the physical title can take weeks. After that episode I decided that I’d never direct sell a car with a lien - I will pay it off, get the title and then sell it. Of course, none of this is an issue when trading in the car.

 

Ahh well, the transport is here.. and waiting while he sends me copy of purchase agreement etc.

That is what I thought, will have the paper work first and then sell the car.

 

Under stood. I agree with you. Might be easier. How about the paper work part? Definitely have to have some paperwork right! Even with lien or no lien etc.

 

Absolutely. At minimum need to have an invoice with the agreed sales price, the payoff listed, and a promissory note for the check that they will be cutting you for the difference. Beyond that, you’ll need the standard paperwork you sign for a car sale (ie POA, Odo statement, etc).

 

Thanks a lot.

Appreciate it. Glad I asked.

 

You were intelligent enough to make a decent living and buy yourself a great car but yet those senses are abandoned when it comes to a sale? Cash in hand THEN the car leaves your possession.

 

wrong, that’s not how it works with a lien. As explained before he just needs the dealer to create a contract/bill of sale that states the dealer has 10 days to pay the lien off and when lien is released he will get the balance to previous agreed upon sales price paid back. When they pick up the car he also should have a signed document that he handed the car over and best would be some pictures documenting the condition, that 2 keys are included etc. The dealer simply does not pay you until a) he has the title, and b) can confirm the pay off. It’s standard practice. If you demand they give you cash first how is that supposed to work… you can hand them the key and car but no title. Nobody will do that.