TheSamba.com :: View topic - Sending a down payment from the classifieds

Tue Mar 09, 2010 1:46 pm

I'm working out a deal on a Bus in the classifieds, where I'm gonna pay him half down in like a week and the other half a week or two later. I suggested doing this to let him know I'm serious about it, and so it doesn't get bought out from under me before I get the coin scraped together. How would you guys suggest go about doing this in the safest way, i.e. without me getting screwed out of my down payment? Everyone I've dealt with on here has been very reliable and I hate to be skeptical, but after all it is a stranger in another state.

Tue Mar 09, 2010 2:15 pm

One word.

"Escrow"

Tue Mar 09, 2010 3:07 pm

in the past i have written a post dated check for the deposit, to be returned when the full amount is paid.

maybe you can try something along those lines?

Tue Mar 09, 2010 3:35 pm

That seller is nice or a scammer. I'd never allow anyone to put anything on layaway i had for sale.

Tue Mar 09, 2010 9:35 pm

grimace007 wrote: in the past i have written a post dated check for the deposit, to be returned when the full amount is paid.

maybe you can try something along those lines?

I am really bad with this financial lingo, for which I apologize. I'd have no idea how to write a post-dated check...and I don't know what escrow is. I looked up the word 'escrow', and came up with "a contract, deed, bond, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition."...so, a contract? How does one draft up a legit legally-binding contract?

Tue Mar 09, 2010 9:46 pm

By "post dated" I believe grimace007 is trying to say put a future date on the check. Legally, the seller's bank can not let him cash it or deposit it until that date has passed.

So, put a date on there which will come around AFTER the date when you send him/her your second payment (which should be for the amount in full). Then they can return your original check to you once they have deposited the new one. Or something along those lines...

Tue Mar 09, 2010 10:01 pm

Hmm! That makes some sense. Do you think the bank could overlook that though? I wouldn't think a lot of people write checks in the future and I could see how a bank teller could not even look at the date and cash it anyway.

Tue Mar 09, 2010 10:08 pm

thegoodfight7211 wrote: Hmm! That makes some sense. Do you think the bank could overlook that though? I wouldn't think a lot of people write checks in the future and I could see how a bank teller could not even look at the date and cash it anyway.

I'm sure it depends on the teller. We always received our paychecks Thursdays even though *official* payday was Friday. The date on the check is always stamped with Friday's date. I used to be able to deposit them Thursdays but one time the teller told me that she couldn't approve it. News to me. She explained that they are not allowed to take checks until the date written on the check.

But I'm sure that some tellers probably just don't catch it...especially if they are moving fast on a Friday trying to get the line inside the bank to die down. But if you write the check to the seller and tell him/her they can't cash it, they probably won't try and they'll just wait for your second payment.

Idk, talk to the seller and see if it will work for them...

Tue Mar 09, 2010 10:12 pm

Have you checked the feedback? If the seller had a bunch of positive feedback I'd do it, no problem, but if they had none then I might be weary. Maybe you should hold off on the bus until you have all the money? I was in a similar situation as you when my bus was first for sale. I was eying it for about a week or so but I didn't have all the money to buy it. It sold before I did. A few weeks later it appeared for sale again from the same seller because apparently the first deal went through. I figured it must be fate and bought it right away. :D

From my experience sellers will only hold stuff for a short amount of time. A week or two seems a little long to wait for someone to pay something off in my opinion.

ps, your avatar is an old favorite band of mine.

Tue Mar 09, 2010 11:33 pm

If it's an out of state check, it'll probably take a couple weeks to clear anyway.

The last large out of state check I deposited took 21 days to fully clear. A bit of a surprise.

I would do a small down payment ($500?) if you are worried.
Either way, I would ask for a written and signed receipt for the deposit from the seller.

I, <seller name>, have received a deposit of $500 toward my 1965 VW Bug, VIN #115xxxxx on 03/15/2010. Remaining payment of $3000 for a total price of $3500 to be made on or before 03/25/2010. Vehicle is sold in as-is, where-is condition.
<Seller signature>

Tue Mar 09, 2010 11:56 pm

That would be good for a face to face and hand to hand transaction, but what about a distant transaction? Couldn't a seller just not give a receipt like that, cash the check, and sell it to someone else?

Wed Mar 10, 2010 12:26 am

This is tricky. You are asking if you should just trust someone you've never met and who's probably a long distance away. Your chances of success go up proportionally with the seller's feedback being extensive and positive. I'd check post counts, too, and whether the individual is contributing meaningfully to the forums or is just kind of a dick.

One thing I've thought about that might be helpful and provide some insurance is running the sale through Ebay. Have them put it up with a "make an offer" option on a "buy it now" auction, where you make and they accept the offer equal to the agreed-upon sale price. That way, Ebay can serve as an escrow, more or less, but there are probably more fees involved.

There are escrow services that handle this kind of thing, but I've never used them. They just facilitate the transaction, e.g., take your money and hand it over to the seller only after the seller has provided them with the car and title.

You could also hire a lawyer to conduct the transaction for you near where the seller is located. It's not complicated and probably wouldn't cost very much, and you've got the lawyer's professional liability on the hook.

You should expect to incur some cost for "insurance" of whatever form. You are, otherwise, leaving it to chance to a great degree.

Wed Mar 10, 2010 2:22 am

Well based on what you guys have to say, I should be worried. His profile shows his post count as 0, and has no feedback listed. He's not a dick though; he seems very straight-forward and willing to work with me. I'd post the conversation between us but I don't think that's going to be able to indicate for sure if this guy's gonna pull through for me or not.

He's given me his phone number, and has it in the listing as well...so that seems to be SOME form of legitimacy...maybe?

This site looks like it's worth looking into however; the total of our transaction would be around $700, and the fee calculator on this site said that would only be a $25 fee. It'd be worth that to me for the extra peace of mind. I don't know how I could do it in multiple payments though.

And once I got to thinking about it, Paypal has a similar feature. When I sold something on eBay before, one time it required the person to leave me positive feedback before I could access the funds. It showed the payment as going through, but only upon them verifying that everything was kosher would it officially get deposited. I wonder if I could do something like that?

Wed Mar 10, 2010 7:58 am

thegoodfight7211 wrote: Hmm! That makes some sense. Do you think the bank could overlook that though? I wouldn't think a lot of people write checks in the future and I could see how a bank teller could not even look at the date and cash it anyway.

post dated check are alot more common than you may think....

if your worried about the teller overlooking the date highlight it in a neon color!

Wed Mar 10, 2010 8:34 am

Any mail you send have it sent certified with a signature required.

Wed Mar 10, 2010 8:48 am

Another option would be to fly to where the car is and do the deal in person. You can pretty much eliminate variables with that approach. If the car is expensive enough, it'd be foolish to do anything other than that. Legion are the stories about "I paid a handsome sum for this car supposed to be in #1 condition, I relied on the seller's representation and didn't lay hands on the car before forking over my money, and when I got it, it was caked with bondo and crappy aftermarket parts, so what do I do now?" Nothing--you screwed yourself.

If it's a $500 car, you don't have much risk to worry about. If you're buying a 23 window bus for $50K, you deserve whatever happens to you if you cheap out on your due diligence work.

Wed Mar 10, 2010 9:14 am

I guess when you look at it that way you're right...but even if it is a $700 vehicle that's a fair sum of money to someone like me! :lol: And I guess I'm just trying to be smart about the whole thing. Just seems scary sending cash to a complete stranger with no recourse if it falls through.

Wed Mar 10, 2010 6:55 pm

One word... two words? Paypal.

I wouldn't post date the check... that's going to be an ugly mess if the bank goes ahead and cashes it.

A few hundred of good will money should be enough to hold it.

Wed Mar 10, 2010 8:32 pm

thegoodfight7211 wrote: Well based on what you guys have to say, I should be worried. His profile shows his post count as 0, and has no feedback listed. He's not a dick though; he seems very straight-forward and willing to work with me. I'd post the conversation between us but I don't think that's going to be able to indicate for sure if this guy's gonna pull through for me or not.

He's given me his phone number, and has it in the listing as well...so that seems to be SOME form of legitimacy...maybe?

This site looks like it's worth looking into however; the total of our transaction would be around $700, and the fee calculator on this site said that would only be a $25 fee. It'd be worth that to me for the extra peace of mind. I don't know how I could do it in multiple payments though.

And once I got to thinking about it, Paypal has a similar feature. When I sold something on eBay before, one time it required the person to leave me positive feedback before I could access the funds. It showed the payment as going through, but only upon them verifying that everything was kosher would it officially get deposited. I wonder if I could do something like that?

Just because a samba seller doesnt have feedback listed or has zero posts count doesnt mean they are up to no good [at least in some cases]. There are many people who don't participate in forum posts and may not sell often.

You said the ad is in the classifieds, this site? Why not try posting a link to the ad for the bus you are looking to buy and maybe someone reading this thread can vouch for this seller or knows him. You mentioned its only a $700 bus so I can't imagine there will be a frenzy to buy it out from under you, especially if its already posted publicly on this site. Worth a shot in my opinion.

My advice is always to inspect a vehicle and pay in person so you really know what you are getting.

Wed Mar 10, 2010 8:38 pm

Hey that's a great idea. I think I'll post a thread about that.