Selling car to buyer who only wants to pay half up front (vehicle, AWD)
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I was wondering what was the best way to do this, the buyer was going to pay for a little over half for the car up front. I was then going to hold his title for his other car until he came up with the rest (about two weeks). Would this work or is there any better options of doing this?
Is the other car not running? That just seems like a strange situation. I would take a deposit for the car to remove it from marketing, a nominal amount that also includes a provision for remarketing, such as $100 for relisting it in a classified ad should the buyer not come through. Then, give them time to get their funds together and complete the purchase. Don't give them a vehicle, however, when they do not hold title, since you are responsible for it, and could expose yourself to liability issues; and what happens if they don't come through with the money?
Write the person a receipt for money down with a description
of the car including the VIN number and the date it to be
completely paid for and both of you sign
To clarify this situation, you are getting paid half of the value of your car, and you are giving him possession of your car, he keeps possession of his car, and you get to hold the title of his car? Does that mean you are giving him the title of your car as well as possession before you get paid in full? This doesn't seem like a good deal. The title proves ownership of the car, but he's not transferring ownership to you, correct? So you hold a piece of paper that shows he owns his car. And that serves you, how? Plus, you don't know if he has any liens on that car? Which would make the title pointless if the courts have already prohibited him from selling the vehicle until he pays outstanding debts secured by the vehicle.
I wouldn't do this personally. I would hold onto the car and tell them to come back later when they have the money. Keep advertising for the car as well. If you sell it to someone else oh well.
In a private party car transaction, you're looking for trouble by not getting all the money in good funds before giving title and delivery of the car to the buyer.
Dealers have recourse in these situations by financing the buyer, so the car sale is a "done deal", and the money side of things is held by others (unless it's a "buy here - pay here" lot). Unless you have those resources and are willing to take several big risks on somebody else driving a car that you own and are still liable for ... don't go down the path of financing your car buyer. It's more trouble than it's worth for you ....
If this buyer wants the car bad enough, they'll wait the two weeks they need to get the money or they'll get it from a legitimate lender. Otherwise, find a "real" buyer.
Don't even bother with holding title to another vehicle as "security". Unless you file and establish a "secured interest" in that vehicle, all you have is a piece of paper which gives you no rights or interest at all.
Yea thanks for all the quick advice, the buyer said it's ultimately up to me how I wanted to go about doing this. I'm thinking that I'm going to have him just give me $100 or so for me to hold it for two weeks until he has the cash. Also write out some sort of agreement to were if he doesn't come up with the full price within two weeks then he only gets half of his deposit back. Luckily the car doesn't hold much value either way I'm just tired of the headache of trying to sell it.
Yeah, I would not even deal with this guy - In God We Trust - All others can damn well pay cash!
Instead of the guy paying you 50% now, draw up a simple contract where he pays you 10% as a non-refundable deposit to hold the car for (how long does he need?) at the end of this period of time, either this guy shows up with the other 90% and gets the car, or fails to do so and you keep his deposit, he gets nada.
*possibly* offer to barter with this guy, but take care to not take any tainted goods in trade.
What kind of car and how much money are we talking about here?
Yeah, I would not even deal with this guy - In God We Trust - All others can damn well pay cash!
Instead of the guy paying you 50% now, draw up a simple contract where he pays you 10% as a non-refundable deposit to hold the car for (how long does he need?) at the end of this period of time, either this guy shows up with the other 90% and gets the car, or fails to do so and you keep his deposit, he gets nada.
*possibly* offer to barter with this guy, but take care to not take any tainted goods in trade.
What kind of car and how much money are we talking about here?
It's a 95 Eagle Talon Tsi AWD, fun car but it pops out of first and is leaking some oil. I don't have time to mess with it so I'm just trying to get rid of it. I'm selling to him for $1200 if he comes through with the money. He has an older Eagle Talon which he plans on stripping and throwing a lot of it into my vehicle. So yea I'm probably gonna do like you said 10% deposit. He gets paid this week and then again two weeks from now so really about 3 weeks until he would have the cash in full.
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