Car selling question
 

I've found a buyer for the VW Jetta that I'm selling. We agreed on a selling price of $5,500. However, his budget was $5,000 and he needs a little time to gather up the remaining $500. My question to all you frequent car sellers is - How would you handle this situation? Keep in mind that I don't know this guy aside from a potential car purchase.

My initial thought is to get him to give me a deposit of $200 to $500 to hold the car for him. Then he would have 1 to 2 weeks to come up with the remainder. I understand that he might be a bit leery about giving a stranger several hundred dollars. However, I need some sort of assurance that he is serious.

Does anyone have any better ideas on this???

As I have helped people buy and sell many many times I'll chime in.
I would get the deposit but stipulate that if someone comes along with $5,500 while you are waiting on him to collect more coins, you have the right to sell it adn will return his money. I would write this down, 2 copies, both sign and keep. Too many people don't follow through after they leave. He could find another car, or get talked out of this one by himself or someone else.

It's like a car dealer wanting you to do the deal "today" and not let you leave, they are basing this on fact. As many probably know from experience, you do have the strong potential to change your mind when you leave the bright lights and shiny steel showroom to "sleep on it."

If I were a buyer, I'd ask "What's the point of giving you a deposit if you may still sell the car from under me?"

Either take a deposit to hold the car (and document this) or take no money until he shows up with all the money. Under no circumstances give him the car until you have all the money you want for it.

What are the odds this is a negotiation tactic to get you down $500?

x2

If you think can do better, tell him to get back to you when he has the $$. If not, take the 5k and move on.

Good luck

If he's serious about buying the car, I would demand a much bigger deposit. You don't want him changing his mind, or finding a different/better deal before he closes with you.

One thing you can do is see if a local bank could hold the title and funds in escrow until the final amount is deposited. But whatever you decide to do, make sure it is CLEARLY spelled out, in detail, in a "bill of sale" signed by both parties.

Years ago I sold a 240Z, and the kid that bought paid all but the final $500 up front. I agreed to give him a loan for the final $500, payable $100/month. After 2 months, he totaled the car. I had to chase after him for several months to get the last of my money; he had a hard time understanding why he still owed anything if he didn't have the car anymore :bang: .

I'd take the offer under the stipulation that you'll wait a week or two. If no one takes it for 5.5, take his 5k. Selling cars is too much a PITA to make it more complicated.

If I take the deposit, I'll definitely hold the car for him. However, we will come to an agreement that he will need to have the remainder of the money by X-date. I'll probably give him 2 weeks. He works at Merchant's and told me they get paid every two weeks. I've needed to sell this car since November but I finally got around to listing it a couple of weeks ago. So the additional two weeks is no big deal to me. I will draw up some sort of "Deposit Received" documentation for both of us.

I'm not sure if it's a negotiation tactic. I already came down from my asking price of $5,750 and I think he realizes that $5,500 is as low as I'm going. He told me he had been looking at Jettas for awhile and all of them were selling below $5,000. But he also agreed that mine was the nicest one and agreed to the premium.

If the buyer has trouble coming up with $500, you have to wonder how he's gonna come up with the money for tax, title and tags. I would tell him you're still looking for another buyer until her comes up with the cash. And if he buys your car, make sure he brings his own license plates and call your insurance co. right away. Sounds like this guy might be able to come up with the cash and then not get around to registering it in his name for a while.

Excellent point.

He's a young guy and I can tell that $500 is a lot of money to him. However, tax, title, & registration is his own problem. I'm going notify the DMV and my insurance company as soon as the transaction is made.

I have this car priced kind of high (KBB is around $5,000). However, it is in near excellent condition and is priced based on the local compitition. This guy is only the second hit on the car. I realized the car wasn't going to see a lot of interest but that the right buyer who values a well taken care of car would be out there.

PS - Just talked to the guy. He is swinging by tonight to drop off the deposit. He also wants to take the car to Springfield VW for a PPI this week. I have no problem with that.