Finance, Credit and Repossession Information Resource

Selling a car out of state with the ability to repossess

Maserati-MC12-CorsaYou decide to sell your car so you put an ad in the local paper, auto trader or some online outlet to sell cars. In many cases, most of the people that call are out of the area, either in another state or slightly closer in another city. People make appointments to come see the car and in many cases they never even come to see it and they just buy it sight unseen. There are several important things to cover when selling a car in order to cover your ass so to speak. Over the years being in the liquidation, remarketing industries I have seen one too many times somebody get burned for some slight oversight or error on the part of the seller.

To do list when selling a car out of state

  1. Make sure you get a wire transfer of funds or cash depending upon the price of car.

Checks and cashiers checks can no longer be trusted with the amounts of fraudulent people roaming around. A bank will actually put a 7 day hold on a cashiers check to avoid a fraud check and even if it is fraudulent, you are fully responsible for the amount. Simple to say wire me the money and pay the small fee involved, its the fastest and safest route for a larger purchase.

2. Write up some kind of clause leaving you the ability to repossess car if buyer does not title the car in the state purchased.

Just because you have a signed purchase order showing proof that car was purchased from you, the car and title are still legally in your name until this buyer actually registers the car in his or her name in their state.

3. Make sure buyer sends you proof of insurance prior to sending the car or allowing them to drive off.

Even with the purchase order in your hands, if they should have an accident, you will be the one who gets sued as owner of the car.

4. Keep your own insurance on the car until you have proof of registration sent to you.

This will cover you for the time being until the car is registered in buyers state, well worth it to avoid a potential 6 or 7 figure accident suit.

The above are the basic things anyone should do when selling a car out of state. Even if it’s 1 out of 10 times a buyer never registers the car for unknown reasons, nobody wants to get served with an absolutely unknown law suit a year or two down the road for still showing up as owner of the car. At least now if they do not show proof of registration, you can contact a local repoman to get the car back for you. However you should always contact your local attorney for a short phone consultation on legal ways to handle the repossession since the car was paid in full.

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