Post # 1
My Fiance is selling his truck tomorrow, and I’m getting a weird feeling about the buyer. I’m a little worried that it’s a scam. If anyone has experience with buying or selling a used car using a personal consumer loan direct from a private seller, I’d appreciate your input.
Some background: My Fiance listed the truck on Craigslist for $18,000. The potential buyer responded via text message and came by to see it the next day. He’s in his mid 20’s and seemed nice enough. He didn’t mention pricing however – he just said he’d take it. They didn’t confirm the price as far as my Fiance can remember, so my Fiance is just assuming he’ll get the full $18k. The buyer is planning on paying with a personal loan through Chevron Credit Union. My Fiance still owes around $9,000 on it, so there are four parties involved – 1. my Fiance, 2. the potential buyer, 3. the buyer’s credit provider, and 4. my FI’s credit provider. They’re meeting in the morning to process everything. The buyer asked my Fiance to bring his drivers license, insurance, and registration, and they’re planning on heading over to the buyer’s credit union.
Here are the red flags I’m seeing — the biggest one is no discussion on price. That’s always the #1 topic that comes up when buying/selling a car. It just seems so strange to me. Also, the fact that he asked my Fiance to bring all of that personal info. I guess it makes sense, but he’s been so ambiguous about everything else – i.e. how his credit union is actually going to pay our creditors – that it just seems a little alarming that this is one detail he was very sure of. And, besides that, I’ve bought four cars and sold three in my life – one in a somewhat similar situation – and I was never asked or did I ask to provide proof of insurance. My insurance provider always covered my purchases for either 30 or 60 days following the transfer date.
Any thoughts?? We’re definitely not going to accept a cashiers check, money order, etc. And, I know that it can take some time to process a direct wire, so we’re not handing anything over until all is said and done. We’re going to call both our creditor and the buyer’s in the morning to ask what their standard process is, and we’re going to make sure we don’t stray from it. With $18,000 at risk, I’m just trying to make sure that we’re not putting ourselves in a bad position.
Post # 3
My Fiance sold his car last year to a buyer from craigslist. If your Fiance still owes money that means he doesn’t have the pink slip. If he doesn’t have a pink slip I believe the creditors do need his info to verify that your Fiance is the rightful owner of the vehicle. Just make sure his social security number is not involved then you guys should be fine.
As far as the price goes, have you checked the kbb price? Maybe you guys listed it under it’s value. Maybe he’s just a newbie. Maybe he’s going to discuss the pricing at the meeting tomorrow. Just keep your social security number away from all transaction and make sure EVERYTHING is in writing. Make sure you have a contract that frees you from all responsibilities after the transaction.
Post # 4
Did you use kbb? Or nada? Most credit unions use nada now instead of kbb.
Maybe the guy was ok with the price. Usually people will try to negotiate pricing, but some people HATE doing that. I’m fine with negotiating prices but I know friends who don’t like that at all. The credit union will probably run a report on the value of the truck so he probably knows the value already.
Since you’re meeting at the credit union, it doesn’t seem fishy. Sometimes credit unions require that info to verify that the car is your FI’s. Since he’s getting a loan, the credit union will own the truck until the buyer pays it off. So they just need you to prove its your truck so they pay off the right people & check the truck’s vin #.
Now, if you were saying he wanted your personal info outside of the bank, that would be a red flag. Just don’t give out your SS# cause they shouldn’t need that at all.
Post # 5
I agree with the others that it doesn’t really seem weird to me. You are going to have to go through the banks to sell it since you don’t have the official title to the car. I would check with your bank to make sure this is how it is done but it makes sense that the new bank would get the title from the old one instead of having the buyer or seller do that.
Post # 6
Also, I did a dealer trade in a few years ago on my old car & they told me they’d pay off my old car. It sounded strange to me too. I assumed they’d give me the money to pay off the car. However, they explained it to me if that happened:
Lets say your buyer’s bank gives you the $9k to pay off your truck loan. But you take the $9k & spend it on something else. So now your bank still needs to be paid the $9k so they can release the title. But the new buyer’s bank will have already paid the $9k to you, so they paid for the truck in full but your bank still holds the title. That make sense?
Buying cars can be confusing, my guess is he owned cheapo cars in the past & so this is kinda new to him too.
Post # 7
Why not just call your bank or where ever you currently have the car financed through and ask them how this kind of situation usually works, they deal with fraud every day and should know if something seems weird or not. Also do a search on the possible buyers credit union. Verify that it’s legit and everything. I agree with some of the previous posters, if your Fiance doesn’t have the pink slip yet then they’re gunna need all sorts of info regarding that. Also if this guy buying the car is only 20, maybe he just doesn’t really know what he’s doing yet as far as haggling goes. I wouldn’t be concerned about the fact that he hasn’t talked money yet, maybe even be ready to have him talk about it when you guys meet up.
Post # 8
It doesn’t sound weird to me – but has your Fiance talked to his creditor to find out what needs to happen for them to release the pink slip? They buyer’s credit union will likely be writing two checks – one to payoff FI’s loan and the other to Fiance. Just make sure that FI’s loan is able to be paid off that way – that’s the part that can get sometimes tricky.
Post # 9
Sorry for another post… just be sure that the credit union gives you some type of paper that states they’re paying off your loan directly to your car loan company. Your insurance info should have the name/address/info of your loan right on the card. I’d bring a copy of your loan payment stub with you in case the address isn’t on the insurance card. Bring their phone number & your account number with you as well.
Also, you may want to call your car loan office & give them the heads up that you’re selling your car & ask for the exact payoff amount. The credit union will probably do that on their own.
Post # 10
Thanks for the suggestions everyone! Good news – everything went well today, and the truck is officially sold and money is in the bank. It turns out that the red flags were a result of the buyer just being very young & new to the whole car buying process. This guy was probably 21 or 22, and I think this must have been his first car purchase. He didn’t even try to negotiate the price – he paid the full $18k. It’s funny, because my Fiance would have let it go for up to $1k less than asking. A couple of the other things that seemed weird were just miscommunications – for example, they didn’t actually need our insurance. Everything was handled completely by his credit union, so I’m confident that we processed it correctly. So, now I’m feeling a whole lot better about it… and with the difference between what my Fiance owed and what he got, he’ll be able to pay off all of his credit cards and put the rest towards the wedding/honeymoon. Woo hoo!!
In case anyone is wondering… my FI’s grandpa gave him his ’93 Toyota pickup truck recently, and we’re trying to get on top of debt, which is why he sold this one. It’s not nearly as fancy, but I have to say that the simplicity is kind of a nice change. Manual transmission, no A/C, no mirrors in the visors, no power anything, including steering, no CD player, etc. Not much that can break!!
Post # 11
My uncle had a old toyota truck (early 90s), it was plain and had a manual transmission. It went like 500,000 miles. I’m glad everything worked out!
Post # 12
Congratulations on getting out of debt and using a paid off vehicle. As long as they safely get you from point A to point B there is no reason to have something fancy.