I just had a very interesting and ....

JBBright · #1 (**permalink**) 03-05-2005, 08:38 PM

uncomfortable situation in trying to buy a Cobra. I negotiated the deal which included payment via an escrow service on Hemmings. We agreed to everything, I mailed a down payment and then the seller says that he will not do an escrow sale. The money was to be wired to his account upon the car's arrival at my house. OK, I thought that we were both protected by the escrow service. Where was I wrong or is the seller off base?

G.R. · #2 (**permalink**) 03-06-2005, 12:49 AM

If I was buying a car I would insist upon using an escrow service. The funds transfer quickly. That is how I insisted it be done when I bought my FIA. When I took delivery and signed the paperwork and notified the escrow company the buyer had his funds the next business day(due to the time difference between the west coast and Chicago only).
I put a deposit on the car in an escrow account, then arranged shipping, once the buyer verified the escrow had the deposit, he ok'd the release, the day the car was shipped I put the balance of the funds into the account, to be released after I accepted/approved delivery of the car. I paid the escrow service fees which is usual buy the buyer.

An escrow service protects both buyer and seller....buyer recieves the goods as decribed by the seller and the seller recieves his funds in full. Escrow is used in real estate all the time for that very reason.

Unless it is a scam I can't understand why the seller would balk at using an escrow account he would have his funds in his account in a max(usually) of 1 business day. The escrow company will take care of all the paperwork involved in tranferring funds, the buyer has no knowledge of the sellers account information nor has the seller knowledge of the buyers account information.
FWIW Good luck

Ron61 · #3 (**permalink**) 03-06-2005, 05:36 AM

Is it possible the car isn't all the buyer claims and he knows if you refuse to accept it, he gets no money through escrow? If there wasn't something not right, I would have no problem selling or buying a car through escrow. As stated above, it protects both parties.

Ron

chev-hell · #4 (**permalink**) 03-06-2005, 06:10 PM

why is it bad to do what he's suggesting? if the car comes and isn't what it's suppose to be then don't wire the $ and leave him with the return trip of the car.... that is (in my opinion) the best possible scenario for you to buy it... i deal in cars/bikes/watercraft and i'd do that in a second if i were buying (i wouldn't if i was the seller though)

Jack21 · #5 (**permalink**) 03-06-2005, 07:01 PM

Have you seen, driven, had full mechanical inspection on this car? Well worth the airfare & motel bill.

If seller won't take escrow service, suspect a scam, or defective goods. Pass on the car. There are plenty more out there.

mrmustang · #6 (**permalink**) 03-06-2005, 07:04 PM

I'm going to play the devils advocate here. You negotiated a deal, but perhaps a friend or relative of the seller told them that you could abscond with the car (sans title) and not wire the money. He would then be out the car and the cash. Personally, as the seller, I have never used an escrow account for the sale of any of my cars. The buyers understand that they have the option of sending an inspector to view the car before they send payment. If they don't like my terms as the protected seller, then I do not sell them the car.

Bill S.

dblbarrel · #7 (**permalink**) 03-06-2005, 07:28 PM

Bill: Fair enough I would use the escrow sernice if available.

JBBright · #8 (**permalink**) 03-07-2005, 06:16 AM

this deal was that I had invested a lot of time in this purchase and I informed the seller at the beginning that I was going to purchase the car via an escrow service. I told him upfront because the car was 800 miles away that I would have to use an escrow account. Then after a week of negotiating, scheduling an inspection/appraisal, contacting a transporter, THEN he tells me that he can't sell it via an escrow service. By the way, this is after he called my banker and I also offered my minister's contact information. Just wanted you to know "the rest of the story". J.B.B.

jbaugh3649 · #9 (**permalink**) 03-08-2005, 08:31 PM

Those believing that an escrow sale benefits both the seller and the buyer need to visit escrow.com. The escrow sale clearly benefits the buyer. Why someone would buy a car sight unseen, never talk to the seller live, and yet expect that seller to ship an expensive automobile 800 miles away without full payment, I believe would not be very prudent. Remember there are two sides to a story. An escrow sale is great for a buyer but I believe very risky for a seller. If the car is a good value why take on that risk. My thoughts for what ever they are worth.

JBBright · #10 (**permalink**) 03-09-2005, 07:19 AM

even it is changing daily. I believe that your car is probably everything that you claim it is. I never doubted your word. Still in the world today people buy and sell cars using escrow services all the time because the internet has opened the collectable car market to the entire country. People who work all the time, like me and a lot of others on this site, do not fly around the country and examine cars. We have the car inspected by an expert, negotiate the deal, contract the transporter, and contract the escrow service to pay the seller upon arrival and inspection. We protect ourselves but both parties have to agree. We didn't and that's OK after all it is your car. I respect your opinion and wish you nothing but the best.

jldunkle · #11 (**permalink**) 03-09-2005, 07:31 AM

As a Collector Car Dealer I can understand the frustration with a purchase like this. The internet is a double edged sword to me. It allows more buyers to see what I am selling, but more buyers are "too far away" to personally come and see the car. This creates a problem for me. I agree with Mr. Mustang. I encourage ALL buyers to enlist a neutral inspection service. This allows the buyer to get information from an individual who has no personal involvement. It also gives the seller some "cushion" if the car is delivered to the buyer and he has an issue with the car.

My position is this with the buyer:

"If the car is not the way I say it is when it gets there fine I will take it back. If it is not the way you had HOPED, then pay to ship it back. "

As sellers, we should not have to carry the total burden in a transaction. I know there are a lot of scams out there. Keep it simple. Get a notarized bill of sale from the seller also stating that if you are not happy with the car when it arrives you/buyer will assume responsibility for the shipping back to the seller. Do a wire transfer. Wire transfers are the best verification of funds being sent and received.

As a buyer, if you are not willing to take the time or spend the money to inspect the car personnally, then you will have to assume some of the burden if the car is not satisfactory to you.

JBBright · #12 (**permalink**) 03-09-2005, 07:43 AM

I agree with your comments about the internet. Still John and I just could not agree on how to do a deal. No hard feelings on either of our parts. In the meantime, I bought a 1968 Shelby GT350 convertible from a dealer with a great reputation and a written 100% money-back guarantee. I'm comfortable with that so who needs an escrow servive under those conditions? Just my opinion. The internet has changed the car market at the same time that it has changed the world.