Selling A Car - How Do I Protect Myself?

[buck22]

What is the name of your state (only U.S. law)? Georgia

I'm selling my old car that needs some work done to it. The only real issue is that the brakes have gotten weak and need to be fixed. It's still drivable but I could see where it could be a substantial liability.

I'm asking $1200 for the car, and someone wants to give me $800 upfront and pay me the other $400 over the next 4 months. I'm fine with this as I was about to have one of those "we buy cars" places take it anyway.

So, my idea was that I would hold onto the title until it's completely paid off. I just don't know if a contract I write up would hold up in court if say, during the 4 months they're paying me back, they fail to have the car fixed then have a wreck and try to blame it on me since the car was still technically in my name.

Suggestions?

 

[TheGeekess]

What is the name of your state (only U.S. law)? Georgia

I'm selling my old car that needs some work done to it. The only real issue is that the brakes have gotten weak and need to be fixed. It's still drivable but I could see where it could be a substantial liability.

I'm asking $1200 for the car, and someone wants to give me $800 upfront and pay me the other $400 over the next 4 months. I'm fine with this as I was about to have one of those "we buy cars" places take it anyway.

So, my idea was that I would hold onto the title until it's completely paid off. I just don't know if a contract I write up would hold up in court if say, during the 4 months they're paying me back, they fail to have the car fixed then have a wreck and try to blame it on me since the car was still technically in my name.

Suggestions?

Sell the car outright. Don't hold the note for anybody. Ever.

 

[buck22]

Sell the car outright. Don't hold the note for anybody. Ever.

Fair enough. I figured if I got the $800 and nothing else I'd be okay.

So, about the condition of the car? How exactly would I word a document to have the buyer sign? I want to be sure there's no way they can come try to sue me because they weren't responsible with the car.

 

[sandyclaus]

Fair enough. I figured if I got the $800 and nothing else I'd be okay.

So, about the condition of the car? How exactly would I word a document to have the buyer sign? I want to be sure there's no way they can come try to sue me because they weren't responsible with the car.

The problem with taking payments from someone you don't know (and even with those you do) is that they don't always pay, and you don't always have prompt recourse to prevent further issues. As the other poster said, don't take chances. Get your payment in full and up front.

As for them trying to sue you, as long as you don't intentionally misrepresent the vehicle, and you make it clear that the sale is "AS IS" with no specific warranty, then whatever happens to the vehicle out of your hands is THEIR problem. Make no promises, and don't lie if asked about specific conditions or issues, and you'll be just fine - and should have protection from a frivolous lawsuit from a dissatisfied buyer.

 

[swalsh411]

These sort of deals just scream "drama". It's not worth it over $400.

 

[buck22]

Well I'd never misrepresent the car. It is what it is. It's a beater car and the brakes need work. I told the prospective buyer that the brakes are bad and so-on.

I guess I should either ask him for more upfront or just let him take it for the $800 and see if he pays me anything else. Honestly I just want to be rid of it.

 

[BL]

You can also allow the buyer to take the auto for an independent inspection from a repair shop or mechanic at their expense before they buy it , if they wish.

Make out two identical bill of sales with " Sold AS-IS " written on them ,and both of you sign each .

You keep a copy ,and give the buyer a copy.

Include the contract.

After receiving the 800 your satisfied with ( in cash ) sign over the title ,but include the payment plan.

If they aren't close friends or family ,you can always sue in small claims for breach and TRY to collect the 400.

Note: Not saying you can not sue family or friends , but if you did expect the relationship to sour.

 

[Mass_Shyster]

I just don't know if a contract I write up would hold up in court if say, during the 4 months they're paying me back, they fail to have the car fixed then have a wreck and try to blame it on me since the car was still technically in my name.

If you write up the contract properly, the buyer should not be able to come back at you if he wrecks the car.

The problem is if someone other than the buyer is injured in the wreck, they can probably come after you as the owner of record.

 

[OHRoadwarrior]

You need to cover yourself in many ways to do this. You should hold the car until paid off. You should have the required payments spelled out as well as loss of interest in the vehicle on default. You should not allow the car to move off you property until the title is in the buyers name, which you should not do until paid in full. For $400 this is can be a mess.

 

[buck22]

It's somewhat of a moot point because I've found someone else that's going to buy the car outright. No need to worry about BS payment plan.

I guess this form would be sufficient? http://motor.etax.dor.ga.gov/forms/pdf/motor/MV_Bill_of_Sale_Form_Form_T7.pdf

It does not state "AS IS" so maybe I should write up a second?

 

[OHRoadwarrior]

To fully protect yourself, go to the title transfer location and make them apply while you are there.