4 replies to this topic

[Steve Scheifler]

Has anyone used Escrow.com or equivalent to purchase or sell a car (or other items)?

Any recommendations, cautions etc.?

I may be purchasing a used street car from a private party out of state and the seller’s preference is an escrow deal, which seems sensible for me as well. We could use a local (to seller) bank for an escrow deal as well, I plan to pick up in person.

[J. Pressman]

If you plan to pick up in person, just use a local bank to complete a wire transfer once you have inspected car and paperwork.  Sign BoS and title at the bank and call it a day.  Should be a $30 fee instead of a few hunderd dollars for escrow.

[Steve Scheifler]

Hmmm..., probably right. He is the one suggesting the escrow but I guess I was hoping that in some sense it protects me if I get home, go to the DMV and find out there is a problem with the title or something. That would work only if the $ is held in escrow for a few days, is that not common?

[Tom Sager]

I've done some escrow deals for non auto equipment.  It's been several years but as I recall there is some red tape and cost involved.  Worked out well but it may take some work to set it up unless it's more automated now. Yes it will protect you because you don't release the funds until the terms of the deal have been met. 

[J. Pressman]

Since your picking up the gods in person, going through escrow is an extra costly step that really provides no extra security since you would be releasing funds and he would be releasing title at the time of transaction where both parties are already present.  Escrow wouldn't cover you after both parties have agreed to terms and released their sides.  Escrow would be better used if you were getting the vehicle shipped.  You send money to excrow company, he sends title to escrow company, once received escrow lets both parties know the deal is real.  Once the vehicle arrives at your location, and is declared good, you would release funds via escrow, and he would release paperwork via escrow.