Best and safest way to privately sell a car.

July 14, 2013 11:49 AM

I am in Missouri. I have a car that I'd like to sell, but I'm concerned about how to do the transaction safely and securely. It's a desirable used car on which I owe about 12k. Similar cars with more mileage are selling in the $17k-$18k range (trade-in is in the $15k range). We're going to replace this car with a lease with payments I'm happy with, so I'd like to cash out that equity.

I intend to take copious pics of the car and list a detailed ad on Craigslist. I know to do accompanied test-drives in public places and what-not. My concern is with the financial side. Is it reasonable or smart to ask for cash? Any other forms of payment reasonable? Once a price is settled, should the transaction happen at a branch of the bank where my loan is held or somewhere else? According to the DMV, as a seller, I'm supposed to provide Safety and Emissions inspections that are less than 60 days old. Do I get those after I work out the details with a buyer?

I've never sold anything on Craigslist (and only bought some minor things) and never privately sold a car (that wasn't just to a friend) so any insights you can provide would be spectacular.

Any of my STL peeps want to buy a 2010 Mazda5 Grand Touring with less than 10,000 miles? ;-)

posted by Jacob G to Computers & Internet (9 answers total)

On the money side, I would not do a cash deal. Too much risk at the amount you're talking about. I think you agree on a price with the buyer, they get a cashier's check from their bank, and you do the deal that way.
posted by NotMyselfRightNow at 12:13 PM on July 14, 2013

Best answer: go to their bank and get the cashiers check, what the teller make the check.....
posted by raildr at 12:25 PM on July 14, 2013

A cashier's check is guaranteed by the bank. If it's real, it's safe - just call the issuing bank and rattle off the numbers.
posted by ftm at 12:29 PM on July 14, 2013 [1 favorite]

Response by poster: I was under the impression that there was a lot of fraud floating around these days on CL with Cashier's Checks. Though, going to their bank and watching the teller is a great idea.
posted by Jacob G at 1:19 PM on July 14, 2013

List it on CarSoup, which has a really robust St. Louis market—I believe it has protections for both buyers and sellers that you don't get on Craigslist. I found my car on CarSoup, and buying it was a great experience.
posted by limeonaire at 1:22 PM on July 14, 2013

Cashier's checks are not foolproof. FDIC suggests being paid with a cashier's check drawn on a local bank or a bank with a local branch; you can then check directly with the bank to ensure validity.

And I'd suggest using a local online car forum; even if it means paying a nominal registration/listing fee.
posted by variella at 2:26 PM on July 14, 2013

Best answer: Privately selling a car that still has a lein is a pain in the ass. It's likely, depending on the circumstances, that the buyer will have to pay you and then wait for the title to arrive. Lots of private party buyers avoid these deals altogether since they're often out the cash for the car, and don't hold the title while the paperwork clears. Even if your bank branch holds the title locally, they still need to make sure the funds are good before releasing it.

Selling cars on Cragislist, you'll get a bunch of tire-kickers and lowballers. Ask yourself whether the time, hassle, and risk of getting scammed is worth the difference between what you'd get privately, and what Carmax would give you. If your car has under 10k miles, Carmax will pay a premium.

Also, I bought a 3,000 mile used 2012 Mazda5, from a dealer, for what you think you'll get privately. You might want to check your valuations again.
posted by hwyengr at 2:59 PM on July 14, 2013

Best answer: I just did a private sale and in my research I found that working with someone who banks locally made all the difference in the safety of taking payment. He and I finalized the transaction at his credit union branch. On location his banker provided me a cashier's check and we signed over the title at the bank. If you don't get a cashiers check from a cashier there is no reason to believe it is any more legitimate than a hand written check.

As for the process of selling a car on CL, I've done it twice and found it has worked out very well. In my listings I offered a fair price and explained clearly that counter offers would be entertained but low ball offers aren't acceptable.
posted by dgran at 7:35 AM on July 15, 2013

Response by poster: I successfully sold my car via Craigslist yesterday and it went pretty smoothly. Happened to have a buyer with an account at the bank where my loan was held, so we did everything at one location with the assistance of the branch manager. Thanks for the assistance everyone!
posted by Jacob G at 11:12 AM on July 26, 2013