Question
The description and photo thing, I believe I have that down pat.
What I need to know is how to handle the sale. As in, do you ask for a deposit within a certain amount of time? Cashier's check only? What is a reasonable amount of time for pick-up?
Thanks!
Answer
Wow, you're much braver than I.
I personally would only accept a cashier's check for payment. Then I would make sure it was legit before handing over the keys. No PayPal, no checks, no money orders.
Answer
Several months ago I sold a car for my oldest son. The guy that bought it sent him a postal money order for a deposit. He overnighted the payment, so my son had that quickly. He lived out of state and could only come on a weekend to get the car, so it was a week before he got the car. He paid cash for the balance.
Answer
In another forum, a person wrote that they were considering taking PayPal for a payment on a planned auction motorcycle sale, with local pickup of the vehicle.
[Extreme caution mode=on]
And I responded to them:
Cash or bank cashier's check, with transaction done in YOUR bank, with bank staff validating the check and notarizing the bill of sale. You will need a bill of sale and the title signed over and notarized and you may need a statement of mileage. Check your State's website for proper forms for sale of a vehicle. Or call them.
PayPal payment reversal is possible and highly likely without proof of delivery available online from the shipper.
If it were me, I'd have a contract for the sale on top of the rest of the documents and require it be signed. That way, I have a legal document to go back to on top of the others for a civil suit. The contract would specify that I can seize and they forfeit ownership of the motorcycle and title if the payment bounces. Ask an attorney to draft up a sale contract for you with limited warranty (as is or very limited), and other protective terms. Expect him to take no longer than an hour to do this and communicate that. Figure his cost is probably $150 or so per hour. They have standard forms in the office supply stores as well for some of this type of thing, although those aren't favoring you. I'd have the contract specify that the test drive cannot last more than an hour, and cannot go out of the immediate area (30 miles) and not out of State, and that their failure to return the vehicle by the due time constitutes their theft of it or their acceptance of the sale with their payment having not been made in a timely manner with them in possession of merchandise that hasn't been paid for without permission. The attorney can be very specific for your State as to how to draft it, but basically it cancels your permission to test drive and makes them in possession of stolen merchandise, and gives you a document for proof that they knew of your terms up front. The contract should also make them 100% financially liable for any injuries or property damage that they cause while test driving or while driving the vehicle after picking it up, and prior to them insuring it themselves. In fact, they should be indemnifying you as to such damages in case a third party sues you for their accident.
I be very wary of having someone show up to "test drive" the motorcycle being aware that they could "drive off" and not come back. I'd photocopy their driver's license which MUST have motorcycle permission on it. I'd also not drop my vehicle insurance on the motorcycle until the sale is completed, not just scheduled.
And I'd NOT arrange the test drive at home, I'd want them to have to walk past and be photographed by the bank cameras to get to me, and then take their ride, after I got to see and personally photocopy the license. At a minimum, I'd take a digital camera photo of their face and them prior to a ride. One thought that comes up here, is what if they have a wreck while test driving? I'd expect them to say, "ooops, sorry. Guess I don't want it now. And it is totally YOUR PROBLEM. Oh, by the way, the three cars that I hit will probably sue you since you own the motorcycle, and my wife on the back of the motorcycle has whiplash and we plan to sue you too..."
Unlikely? Yes. Could happen? You bet. Are you liable. Yes. Could they be partially liable? Yes, if you feel like suing for a long time. A contract would help make them more liable and you less.
The reality of our new society is that many people sue for anything at a drop of a hat. They take no blame ever. They lie. They never make mistakes. It is never their fault. And their word isn't their bond. Times have changed. Protect yourselves.
[Extreme caution mode=off, cynical mode=off]
Could they do the transaction and be safe - sure and probably would. But why take the small chance of getting ripped off for thousands of dollars.
After this, discussions continued into whether or not a few sellers should opt out of the PayPal Buyer Protection plan. The interesting part of it is that I really like and recommend PayPal, but the more seller horror stories I read, the more I become concerned. This isn't anti to any auction or payment service in as much as a fraud could happen with many, unless the seller is very careful.
Answer
I have sold quite a few cars and depending on when they are coming take a deposit. The balance in a bank check from the bank not from their account.
No paypal.
Never had a problem and made good money in the process.
One car the buyer had a car carrier come and pick it up and transport it to New York. I'm in Nebraska. I had the money before hand and the title was overnighted to him after the check cleared. My bank did it for me in one day. My bank to his bank. He was a collector.
Just make sure you describe everything possible and be honest so they can't come back and complain about something. Lots of pictures and they will ask for more of angle I never thought of. I had 30 emails a day and it took some time to answer then all and I sure learned a lot about cars and what bondo was.