Forgot about the fourth car I sold . . .

I bought it privately. It was a 10 year old Range Rover purchased from a proud but very old retired WWII submarine commander. His family should have helped him during the negotiation. I had a good friend that was a really good car negotiator. When it came to negotiate on the price my friend pushed a little and was gearing up but the old man said in a determined but still frail voice, "and that's as low as I'll go". There was easily another $500-1000 to take off but being an asian in my mid-30's I just thought, without this man I probably wouldn't live in this country and paid the great man's price.

I sold it a couple year later for about the same price, excluding thousands in repairs : ) For $5900 there wasn't much at risk. I found a nice buyer looking for an old well maintained range rover and he got it. We exchanged a cashier's check I simply trusted to be real for the title.

 

Talk to them and get a feel. You can ask to see their insurance and ride shotgun if that helps.

 

A test-drive is vital to any potential buyer, but other than feeling them out beforehand, there's not much you can do to assess their credit history and financial health. Ask youself the same question you've posed. If you're a private buyer, would you provide what you're requesting to the seller? Do you seriously expect someone to hand over their personal financial info to a total stranger???

 

This is not uncommon. When I make an offer to buy real estate, not single family homes, but commercial properties or trying to lease a retail space, seller/broker always ask for my personal financial statement and bank statements documenting my source of down-payment. Some even call the bank to confirm the actual amount. I guess $37k to many people is a pocket change...

 

Your real estate analogy is rather flawed. Making an offer equates to financial commitment, which is completely different from a test-drive. Would you provide your personal financial info to a selling broker just to look at a real estate property?

 

Do you ask to "try out" the real estate before you purchase? I think comparing a car purchase to a real estate transaction is comparing apples and oranges.

 

Transferring ownership of an asset is the issue here so it's not just comparing apples to oranges, and performing of some type of due-diligence however small the transaction amount was my initial inquiry to those experienced in private party selling transaction.

I think most P owners especially ones in this 997 forum are financially secure or at the mid to top rung of their corporate ladder or their profession. Just in case some may not be familiar with transactions on shopping centers, warehouses, office buildings, etc., they are different from your usual SFR/condo deals. No selling agent has any issues with buyers driving by or checking out commercial properties from the outside, but before a buyer is shown the inside of the building, a written offer is a must along with a proof of financial capacity of the buyer. Likewise, I have no problem showing the buyer my car as long as he doesn't drive it. But before I hand over a key to a total stranger who may not have the financial capacity to pay for my car nor have adequate credit for a car loan, I was asking if other car owners do the same. If something happens to the car while the buyer is in the driver's seat, I think the liability still lies with the car owner since the owner authorized the other person to drive the car. So I guess most car sellers don't bother. Cool. Whatever works for you.

 

To just look from the outside, no. But to check the inside of the property (commercial property not your average SFR or condo) which is similar to a test-drive, yes the industry requires it whether you or anyone like it or not. If you found out after the stranger wrecks your car while test-driving, and you find out his credit score is 450 with no other means to buy the car, what would you have done differently?

 

Is it an industry requirement, or does it depend on the selling broker/entity and state laws? My friend and I have inspected a few commercial strip centers here in Texas as potential investment properties, and we've never had to provide personal financial info just to look inside. Granted, the discussions were much more in-depth than your random drive-by's, but they were all conducted on good faith with no requirement to first demonstrate our financial soundness.

In any case, I just don't think it's realistic to verify someone's pocketbook before allowing a test-drive. Someone with an excellent credit score and ability to buy can just as well wreck your car during the test-drive. That's what their insurance is for.

 

Sorry, in my experience, this is just plain ridiculous. As a prospective buyer, I've inspected dozens of commercial properties, inside and out, in several states including CA, and never had to provide proof of "financial capacity," much less a written offer, prior to any of these inspections. Are you talking about commercial RE in the USA?

BTW, I've sold 8 or 9 vehicles privately, and based on my prerogative, I let some prospective buyers test drive, while others are not even allowed inside - and I've had no problems. I like to think I use "common sense."

 

This thread has been helpful. Thanks!

 

Having bought and sold more cars than I care to count, all I can say is good luck trying to sell privately if you are going to want to see some sort of financial worthiness or deny them a test drive. Personally if someone asked me to see my bank statement I would walk. And if I can't drive the car, forget it.

On the flip side I would not let someone do the test drive without me in the car. And there would be a bit of sizing the buyer up before I let them do a test drive. You do have to be careful though. There are people that use this method to steal cars.

And all of this is why so many people just take the easy way out and trade their cars in at a dealership. But going that route guarantees a low price for your car.

 

boris smirnov. excellent.

used-car transactions are largely about trust and good faith. There are no warranties, whether express or implied, and there is no standard mechanisms, procedures, laws, or regulations for the transactions, whether for PPI's, test drives, transfer of title or payment (other than dealing with dmv post-sale). Given this, as long as the market will tolerate it, you can ask for anything you want from a prospective buyer-- driver's license number, credit card, bank statements, audited financial statements, resumes, college dissertation, recommendations, children, hair samples, blood samples, sperm, the list goes on. Obviously, the market doesn't tolerate those requests.

To request financial statements from a prospective used car buyer is absurd and really unlike any real estate transaction. If you're so worried about getting burned (and plenty of people are everyday), then don't deal in the private used market. buy and sell only with dealers-- albeit at a financial disadvantage to you.

i've recently sold bmw's and a porsche. I am certainly paranoid about having people to my house (always met at a nearby mall) and more nervous about authenticating checks. i've grown tired of test drives and tire kickers. but to gain a couple/several thousand versus a trade in, i suppose was worth it. for how much longer, not sure....

 

The problem with trade in on high-end cars is that you don't just take a two grand licking; you take a 5000 - 10,000 dollar drubbing.

Sigh. I don't look forward to listing my car. I hope a Rennlister will want it.

 

no doubt. very painful. however, in the end, i do believe selling a high-end luxury car privately is not as bad as selling a toyota (less riff raff to contend with). those in the market for a >$60k car tend to be professionals, presumably more sophisticated in transacting business in general, and generally know p-cars (which can be both good and bad).

i'd be shocked if a fellow rennlister didn't pick up your car. especially with the LM's.