Possible purchase off of ebay advise

[Dick G.]

Considering purchasing a corvette off of ebay. I have always felt, if I ever made a long distance purchase like this before, I would hand over the final installment in person only after I have physically touched and looked over the corvette. Understandibly, the seller will not let the car leave before my money to him has cleared the bank. So, Doing this on a weekend is near impossible. No, I will not take green cash. Yes, wire transfer works, but not on a weekend. What have some of you done to protect you the buyer and to reassure seller? I heard of a car collector who hires a local attorney where the car is located and has the attorney represent him in looking at the car, NOT as an appraisor but to ascertain proof of legal title and VIN match, ID of owner, handing over of check, etc.. Anyone? Thanks Dick Gutman 13180

[Roy B.]

Re: Possible purchase off of ebay advise

If I (really) wonted a car on e-bay I first would TALK to the seller telling him that if I win I would fly back there with in the time I had to pay a deposit and check it out and would that be OK with him. Then have him e-mail me me stating it was OK with him so if the car was not what he said I have a letter to send to e-bay as to why I backed out. I've sold Corvettes on e- bay telling the buyer the same thing and never had a problem.

[Don E.]

Re: Possible purchase off of ebay advise

Roy's approach is sound and is exactly how I purchased my '58 approximately 5 years ago. I worked with the seller ahead of time and we agreed on a modified deposit and acceptable time frame to make the deposit and final payment in the event that I won the bid. During the auction, I contacted a local expert who conducted a very high level evaluation of the car and following his report, I submitted the bid at teh "Buy Now Price". The following weekend, I flew out with two checks.... 1 to cover the depost, and the 2nd to cover the remaining funds to puchase the car. In the event the car did not meet my expectations, he would get 1 check; however, if it was consistent with his description, then he would get two checks. The buyer was kind enough to pick me up at the airport, shuttle me to his house to see the car. After a personal inspection, drive, and lunch I handed over both checks in exchnage for a bill of sale and Title. This worked out well as he had physical possession of the car while the bank checks cleared. Prior to returning to the airport, we worked out the arrangements for the transport to ship the car from Kansas to Oregon. All told, I spent more time traveling than I did with the car (e.g. in and out on the same day).

[James J.]

Re: Possible purchase off of ebay advise

When I bought mine 7 years ago I did the deposit with a credit card through eBay. I talked to the seller on the phone and he was fine with a cerified bank chek for the balance.
Drove from New Hampshire to West Virginia for the inspection, gave him the check, got a bill of sale and the title, arranged for a transport and drove back to New Hampshire.
The car showed up two weeks later. Plenty of time for the check to clear if the seller was worried.

[Ridge K.]

Re: Possible purchase off of ebay advise

Roy's approach is sound and is exactly how I purchased my '58 approximately 5 years ago. I worked with the seller ahead of time and we agreed on a modified deposit and acceptable time frame to make the deposit and final payment in the event that I won the bid. During the auction, I contacted a local expert who conducted a very high level evaluation of the car and following his report, I submitted the bid at teh "Buy Now Price". The following weekend, I flew out with two checks.... 1 to cover the depost, and the 2nd to cover the remaining funds to puchase the car. In the event the car did not meet my expectations, he would get 1 check; however, if it was consistent with his description, then he would get two checks. The buyer was kind enough to pick me up at the airport, shuttle me to his house to see the car. After a personal inspection, drive, and lunch I handed over both checks in exchnage for a bill of sale and Title. This worked out well as he had physical possession of the car while the bank checks cleared. Prior to returning to the airport, we worked out the arrangements for the transport to ship the car from Kansas to Oregon. All told, I spent more time traveling than I did with the car (e.g. in and out on the same day).

Roy's and Don's approach is the manner which I hear 85% of transactions on high-end classic cars are handled. The purchase of my '67 barn find (not on eBay) was completed in this manner with one notable exception. For my seller, no checks,.....not even cashier's checks, and would not wait until checks cleared his bank. My seller required cash on the barrel head. I wanted the car badly enough, to make the cash withdrawls.
Most classic car sellers I know (both individuals, and dealers) will not accept any amount of the purchase price to be handled via credit card, as there are ways to reverse credit card transactions, if handled thru a third party site such as eBay.
I'll never forget my purchase in 2006. That was the most cash I had ever carried in an old paper grocery sack. You should have seen the look on my wife's face, when I pulled the bundled hundreds out. I'll never, ever, forget that look. Glad I survived it.
Good luck on your purchase.
Ridge

[Jack H.]

Re: Possible purchase off of ebay advise

"No, I will not take green cash."

Hum, methinks this could be a potential legal issue...

I remember once when I was working at Texas Instruments and we had employee stores on site for calculators and watches. They didn't accept cash: personal check or payroll deduction only.

One disgruntled employee phoned in a complaint to the US Treasury department. Within HOURS the company policy was changed from the Board of Directors down! Reason: US currency reads to the effect "Payment for all debts public and private"...

Apparently the Feds considered a vote of no-confidence in US currency to be a serious issue.

[Dick G.]

Re: Possible purchase off of ebay advise

Taking green cash problem. No legal issues, just prudent. Oh, maybe robbery for one of several. $10,000.00 cash reporting rule. Uncle Obama may think I'm a drugdealer laundering cash. Is there a way to open an account in a bank near the owner's home and deposit cash in account and withdraw once there? Any other ideas? DG

[Michael L.]

Re: Possible purchase off of ebay advise

The 10K reporting rule was in effect since the 80's... Long before Obama took office. Don't try to pin that on him, you can thank Atlantic City NJ and laundering cash in casinos for this regulation. Also, cash has little advantage when a deal is already done, the flash of cash is usually a tactic in getting a seller to drop a price once he/she sees the green. A wad of cash has much more visual impact than a single check... I stand corrected: Bank Secrecy Act went into effect in 1970...

[Ridge K.]

Re: Possible purchase off of ebay advise

The 10K reporting rule was in effect since the 80's... Long before Obama took office. Don't try to pin that on him, you can thank Atlantic City NJ and laundering cash in casinos for this regulation. Also, cash has little advantage when a deal is already done, the flash of cash is usually a tactic in getting a seller to drop a price once he/she sees the green. A wad of cash has much more visual impact than a single check... I stand corrected: Bank Secrecy Act went into effect in 1970...

Agree with Michael, and the previous posters concerning the $10K transaction reporting practices the banks and credit unions were federally ordered to comply with.
It did initally come into play in 1970, but actually became a firm and emcompassing policy in the mid-1980s, ordered by the feds in all instances.

Currency Reporting - Money Laundering

"The Currency Transaction Report (CTR) came into existence with the passage of the Currency and Foreign Transactions Reporting Act, better known as the Bank Secrecy Act (BSA), in 1970.
When the first version of the CTR was introduced the only way a suspicious transaction of less than $10,000 was reported to the government was if a bank teller called an agent and provided the information. This was due, primarily, to the concern by financial institutions about the Right to Financial Privacy. On October 26, 1986, with the passage of the Money Laundering Control Act, the Right to Financial Privacy was no longer an issue. As part of the Act, Congress had stated that a financial institution could not be held liable for releasing suspicious transaction information to law enforcement. As a result, the next version of the CTR had a suspicious transaction check box at the top. This was in effect until April 1996 when the Suspicious Activity Report (SAR) was introduced.
Currency reporting has changed since its introduction in 1970. There are now several different requirements for several different types of financial institutions as well as non-financial institutions."

I won't bring current day politics into this discussion, but I do agree that the current American President, President Obama, had nothing to do with this policy.
I can tell you, that I tried to "skirt" the issue by withdrawling $9,900 every two or three days to fund a perfectly legal private business transaction I was engaged in last year. This withdrawls were from my personal saving account, at a credit union I have been a member of for 25 years, and am known on a first name basis by the employees. The business I was conducting was perfectly legal, and ethical, and was in no way an attempt to bypass federal income tax laws. Simply a transaction that both parties wished to keep private, and confidential. The computer at the credit union kicked the withdrawls out to a senior auditor, as soon as they hit $20,000 within five days. The auditor called me in and informed me that additional federal legislation required this program to eliminate posible human bias (help) and my transacations would have to be reported to the IRS. The legal council for the credit union futher explained that,... 100% of the government's concerns, were, money laundering (casinos), and income tax evasion (individuals). The "suspicious activity report" was filed on my transactions (by a friendly financial institution)
So,.....no way around the cash withdrawl (currency transaction report) for transactions exceeding $10K per day (or as in my case, an accumulation of withdrawls spread over "gaps" of consecutive days.
Anyone wishing to place blame, may look to whomever was President of the United States in 1986, as these bills brought forward by congress, were in fact signed into law by that year's sitting American President.
My understanding is that some people are leary of taking large sums of cash due to concerns over counterfeiting, and/or possible illegal cash transaction issues. Usually, hiring an licensed financial broker, high ranking bank officer, or attorney will put people's concerns at ease.

Ridge

[Dick G.]

Re: Possible purchase off of ebay advise

I was going to say Uncle Sam but felt that Uncle Obama was one in the same, you know, the Federal Government. I for one, don't care when the $10,000.00 rule took place, it's there. Lighten up. This post has gone way off track. Have a nice day. DG

[Bruce B.]

Re: Possible purchase off of ebay advise

Dick,
I have sold and bought a number of Corvettes on Ebay.
My rule when buying is to talk to the seller, agree upon a REFUNDABLE deposit if the car is not as represented. Or when you inspect the car negotiate the price due to undisclosed problems. If the buyer is up front during the initial discussion continue the purchase. If the buyer insists on his terms with no flexibility, just walk away.
As far as final payment goes, I prefer cash or wire transfer when both buying and selling. Just follow the banking rules, withdraw $9950 every day until you have the needed amount. When selling check the cash with one of those security pens to be sure it is not counterfit.
If selling, deposit the cash in amounts of less then $9950 per day.
Escrow accounts and lawyers are nothing more then added cost and problems in MHO.

[Charles P.]

Re: Possible purchase off of ebay advise

For the three corvettes I have purchased off ebay I contacted the seller and established communication with them. I posted a small deposit on the car (paypal works well) with the mutual understanding that if the car was not as described they could keep the deposit. This would cover their expense to pay for the auction fee and list the car again if needed. In each case, Upstate NY, Des Moines, IA and San Diego, CA, I flew to the car and was able to confirm the accuracy of the auction. I brought a bank money order to complete the transaction. I think the key is communication. Anyone that wouldn't agree to those kind of terms you wouldn't want to do business with IMHO. Good Luck!

[Dick G.]

Re: Possible purchase off of ebay advise

The seller to date has been prompt and very forthcoming in all questions and concerns of mine. Has sent me about a dozen other pictures not on the website. Cash definately rules the day, especially when banks are closed. I may have to consider it. Carrying options: Moneybelt, Briefcase, Brown paper bag, etc.. Thanks DG

[Michael L.]

Re: Possible purchase off of ebay advise

Dick, if you are flying be careful, they can confiscate the cash and hold it. A city in Texas was famous for ripping off a landscaper using cash to buy equipment...If you fly, hope they don't spot check and search, you could have a real PIA explaining the cash. I bought a car for cash in Oregon, drove up from Reno, no issues with TSA.

[Dick G.]

Re: Possible purchase off of ebay advise

Thanks for the advice. DG