Buying An Out of State Car (Private Party)

Can anyone offer any advise on an easy/safe way to purchase an out of state used car?

I'm looking at a car out of state and I won't be able to pick it up personally. I've spoken to a credit union and they said they would distribute checks to seller, seller's lien-holder etc. However, they said they don't do any escrow type stuff (PenFed is who I've been talking to). Any simple procedure to make sure that the seller get's their money and I get my car w/o risk?

Seller has already agreed to pay for pre-purchase inspection and I am to pay for shipping.

Any advise is appreciated.

 

Use a reputable carrier don't be afraid of spending more. Don't offer to use PayPal to pay because of the lack of vehicle purchase protection no matter how much they claim to have I almost got scammed selling a vehicle on eBay. Get a bill of sale until you receive the title would be great if it was notarized but you can't both be there to sign... make sure you know who is responsible for vehicle damage during shipping. Find a carrier with damage insurance. That's all I can think of

 

Be aware that PenFed issues a two-party check, or at least they did for me when using them to buy my Tacoma from a private seller. This means that you AND the buyer have to sign the check, and some banks may want both of you present whenever the buyer deposits the check at the bank.

Honestly the best way to do it is to take care of this in person, and then loading the car on a hauler or driving it back yourself to get it back home. I was very disappointed with PenFeds costumer service, so make sure you ask them a lot of questions to get things crystal clear before you attempt to do this.

 

If its within a day or so drive I'd fly there and drive back???? That's me tho...

 

Thats good advice.

 

Send the guy all your money in a brown paper bag stapled shut at the top. Throw in a dye pack so he knows you mean business.

 

I bought my truck out of state, and financed it through my bank (USAA). After I negotiated a deal with the seller, my bank sent his bank (lien holder) one check for the agreed upon amount, and any money left over after paying off his loan, the sellers bank would then give to the seller.

Then I bought a one way ticket, flew out and drove it home.

I think this was best, to have your bank send the check to his bank, or lien holder. If you give the seller a check, and he does not pay off his loan (if he still has one) then 'your' new car can be repossed by his bank.

EDIT: OP, there is always risk when doing an out of state transaction, so you will just have to trust your gut on it.

 

Thanks. I've asked PenFed a bunch of questions, they will also issue two checks, one to the lien holder and the remainder to the seller.

It's about a 36 hour drive and unfortunately my free time is very limited..and I hate flying

Sounds like not much I can do but trust the loan companies match the lien/title with the truck/seller and ask for copy of ID and put faith in it.

 

How are you dealing with tag transfers? Every time I sold a vehicle to an out of stater they had to make 2 trips. Atleast here in PA the banks dont send out the title until car is paid off, then PennDOT will let you do the transfer paperwork.

 

ya could pay for my round trip and I'll go get it for you...;p;...lol but on the real maybe theres a member near by that can check it out for you... just a thought...

 

Yea, I believe the lien holder will release title to my lien holder once check is received.

The seller is a member, which makes me feel a little better.

 

Good luck and I hope PedFed treats you a lot better than they did me. They lost or never sent out the first check, then they made me wait two damn weeks to issue another one even though it was their fault the first check never got to me. I had the seller waiting for a solid month until the check finally came, but luckily the guy was understanding.