Date:         Thu, 7 Jan 1999 00:07:20 -0800
Reply-To:     Doug Jones <duge4wd@EMAIL.MSN.COM>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Doug Jones <duge4wd@EMAIL.MSN.COM>
Subject:      Re: Out of state purchases.

Dave and Sherrie make some good points.

Without a WRITTEN assurance from the bank that they have committed to the
purchase of X vehicle from you for X number of dollars; You should probably
not let it go out of the state. If the first guy has seen the vehicle (or
not), has made a valid (and now accepted?) offer, and has secured financing
of whatever type from an institution. It can be a good deal, as long as you
deal with the person with the MONEY. That's means the bank in this case.
Best scenario is you get letter (agreement) from bank, you transfer title to
BANK, you get money from bank. Then the bank can allow buyer to register
vehicle and take it home. Basically sell the car to the one who has the
money in hand.

If there should be some accident along the way that could make things messy.
There are lots of things to consider. The first buyer legally has ownership
as soon as you signed, and then he signs the title. Basic good faith
agreement, you both signed with the same intent. So it's not yours anymore
after that.

Does the buyer have insurance for transporting the vehicle?
Does Ohio issue temporary registration for out of state vehicle transport
without receipt of the actual title?
Does PA issue temporary registration for out of state vehicle transport to
out of state license holders?

If he cannot do any of these things, then he'll also be operating the
vehicle illegally. Hell, many of us have slapped on some plates to get a
vehicle purchase back home; but, I won't let someone take a vehicle out of
state that way without the money in my hand. Who knows, the bank could back
out b/c (as it stands) their present agreement is with the BUYER, NOT YOU,
or they may pay less 'cause the vehicle's damaged. God forbid someone is
injured in the accident, the bank and the lawyers and the insurance company
probably will fight over what's left of the van and the money.

I've lived in PA, NJ, CO, MD, and NC. Some will issue temp regs, some won't.
Some are valid out of the home state, some aren't. MD will not give a temp
reg for anything other than IN STATE  transport for the purpose of meeting
the state inspection. I bought an FJ40 in Texas and luckily the seller had a
dealer license in TX, and could issue me a temp TX reg that would be legal
for inter state transport. If I attempted to use the MD temp reg, and had an
accident, my insurance company could dump me toot sweet.

Worst case, accident happens, vehicle is of less value, bank refuses to
finance at a higher value. They are planning to put a lien on it, that's why
they want the title. The bank needs assurance of value to adequately
safeguard their interest in the loan.

As Dave and Sherrie said, CYA. You set the parameters of the deal to fit
your comfort/security level. Politely communicate your needs to the buyer
 and to his bank, that way the buyer can't try an end run and tell you the
bank "won't do that" >>get it from the horse's mouth<<). He should
understand, if not you probably won't want to sell to him anyway. Then go
with the cash deal.

We learn from bad experiences. But it's easier when they're someone else's.
:-)

DougJ