Putting a deposit on a car...questions...

I'm going to look at a car in Dallas this evening. I would like to give the guy a deposit on the car to hold it until I can pick it up in a few weeks. What is the best way to do this? Write a check or cash?

I've never done this before and am wondering if there is anyway to cover my ass if the guy doesn't hold up his end of the deal.

Thanks for any advice.

 

Check.....Personal check if he'll accept it. If all you want him to do is hold it, that should say that you're serious. Also provides you with more protection than cash.....

 

Even if he doesn't accept check as the payment, maybe it'll be cool just for the hold and you could bring cash with you.....

 

Have him give you a receipt for your deposit and put the car's make and license number on it with balance due...have him sign it.

 

Dallas is only a few hours away. If he burns you we'll break his thumbs.

P.S. Check your messages...

 

Write a check with the year, make, model and VIN in the Memo line. Then get a receipt from the guy. Make sure the receipt is more than a signature. Heck, maybe even right it out something along the lines of:

" I (seller) hereby recognize I have received a check in the amount of $XXXX from (buyer) on January 10,2007 towards the purchase of (year, make, model, VIN)."

(buyer signature and date) (seller signature and date)

Make two copies, both of you sign and date both.

I don't know what kind of money you are talking but if it is a lot I wouldn't hesitate to pay a notary $5 to notarize it.

You could go on into more detail if you feel it is necessary such as when the deal will be completed, the balance due, if the deposit is refundable, etc. Yep, I'm pretty anal about this kind of stuff, I don't like to lose my money!

 

I think you mean VIN number right?

 

If you can just pay him for the car and walk away with the Title till you go back to pick it up.

 

I have a form I wrote up in Word, it includes a couple more things to make sure there are no misunderstandings. I always wave cash, but $100 is plenty. It's "earnest money", not a down payment. See attached...

 

Get/make a copy of the title; make sure he is the owner. If it is an "open" title (he bought it from someone else and never put his name on it) get a copy of his bill of sale. If none of that is possible get a copy of his drivers license. If you can't get that bring your camera and get a picture of him with the car so at least you can show what he looks like should something happen local police etc. (post it on the HAMB) and in case he is not who he said he is. If you can get a picture of you together that is even better, say it is for your scrap book. If you can't do that, bring a pocket recorder (check local laws) and record the trans action.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-comfficeffice" /><o></o>

 

Speaking as a seller, I get as much down as I possibly can. More than once, I've been offered $500.00 cash down, and like a dummy, I said just give me a couple of hundred (thinking nobody would blow off their deposit). The guys never showed up and or changed their mind. I kept the deposit, but would have been better to have kept the larger amounts. There are a lot of flakey buyers (and sellers) out there. Stu

 

You can still get a notary to pick up a stamp for only $5?

I say the first person to take a trailer and all the cash should get to close the deal, done.

And never do business with anyone you can't reach across the table and punch in the nose.

 

Actually around here we can still get it for $2. Ohio does have a few benefits, accent on FEW!

 

I meant license number, if it's on the registration ? and you could use both.
Keep in mind most guy's don't like paperwork...so the less numbers the better.
It's a neanderthal thing

 

51 Leadsled has pretty much nailed it. Always verify that the seller is the owner. Pay as little as possible as a deposit.

 

And be prepared for him to KEEP THE MONEY ... $$$ If for any reason you do not go thru with the deal.

Lots of folks ... dumb a$$eS ... think they can get the money back if they change their mind.

I actually had a guy take me to court ... over a deposit. He put down a Grand ... on paper ... with the delivery date ... and he backed out ... I kept the grand ... he took me to court and the stupid jury gave him half the money back ...

.

 

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In the rental world here the terminology deposit , is always legally refundable and a fee is NOT.....H

 

Also, take detailed photos of the car and even one of the seller near the car if you can. Later on he can't say the form was forged, etc. should a problem arise. I agree on the advice about being prepared to let him keep the money, so, deposit as little as possible to hold it in case you decide its not for you. Never hurts to do searches on anywho.com, or searchbug.com just to verify he is who he says he is and the car is at his legitimate address. Finally, take a relative, buddy, etc. Just my $.02...

 

Thanks for the info guys. The car is only $2000, I am only going to put a deposit down on it if I want it, I won't back out of the deal if I want the car. I was planning on $500, but maybe I'll start with $100 via personal check.

I know well enough to check for authentic title in his name, he sounds legit over the phone and in emails, I have photos of the car allready. I had planned on having him sign to an agreed amount of money for the vehicle.

Just trying to protect myself and I appreciate all the advice given.

 

Great form! I plan on taking it with me for sure!

 

Even if you don't buy the car and want to think about it, take a lot of pictures you can check out later. With these new cameras you can hold it under the car or dash and with the flash and auto focus you'll get good pic's you can check out later.
I did this with my last car purchase and was able to see things I wouldn't have otherwise.

 

If I was you I would get it off of his property when you go to see it. If you can not do that, do as much of the legal stuff listed above as you can. I left a $500 deposit once and did not get the legal stuff done and lost out on the deposit when seller changed his mind (long story).
As a seller I once took a personal check, with a guy swearing on his Mother's grave that he was going to buy it. Turned out that he found another car at the swap and immediately canceled check he wrote to me!! I lost buyers with cash later in the day. Only legal check to accept is a Bank Draft from a big bank chain. No money orders or Cashier's Checks if doing a car deal.

 

this is the KEY

 

Make sure on your deposit recipt that is states the date that both parties agree that the car will be picked up by. And that full payment is due upon pickup.

 

Open an Escrow account and have them hold the money until you get the car. This subject came up a few weeks ago. Do a search on the HAMB.
2cents

 

If i dont have the cash on hand I will give him $100 or $500 and take the title. Then I go to the bank and get the rest ASAP. If I dont have the cash available or cant get a 90 day loan at the bank then I pass on the deal. Ive been on the other side of that kind of deal too and unless its a good personal friend I dont hold a vehicle.

 

If it is a case that you just won't have the money for a few weeks don't leave a deposite, unless it's a car you decide you can't live without. Generally I have a good idea if this is the case before I even go look at a car. Take the money you have and offer it to him as a cash sale right then. All he can do is say no, if he does then you can always go back in a few weeks when you have all or close to the asking price and ty it again. If it has been a few weeks and the car still hasn't sold the cash will look tempting to the seller i promise, but you do risk losing the car to someone else but apparently with all these forms for security you are risking that anyway.



Troy

 

Man, I couldn't imagine someone wanting me to give them the title based on the deposit alone. That would be crazy...

Mootz

 

Take cash, a trailer and be done with the deal.