Selling Formula, question about closing the deal
 

I think I have a buyer lined up for my 95 280SS. He is coming from Ohio next weekend to pick up the boat. Since there is a lien on the boat we are going to set up a wire transfer. Is that the best way to go? The bank that holds the note says that it takes one day to confirm the transfer which complicates things. The buyer doesn't want to wire the money until after the sea trial but a the same time doesn't want to sit around for a day until the transfer is confirmed. As the seller I want to be absolutely sure the loan is paid off before the I release the boat and trailer.

This is the same situation that I was in last fall. Overall, unfortunately it takes some trust on either end. What we did was to work VERY closely with our lender. We were fortunate that my lender was the same one that he was using, so transfer was simple.

The buyer had our boat fully surveyed and we had agreed on the price and all details, but wanted a sea trial personally to make sure all was well. Our deal was that he had his loan ready (I had confirmation of the funds), and would bring the down payment to the trial (cerrtified check made out to me). Once he rode in the boat and all was well, we called the lender and said that the deal was a go. This call put the transfer into action. I held the trailer title (though he had a copy of the title) until the $$ were transfered.

Fortunately, all went well and the new owner drove off with the boat on the trailer. Yes, he had to trust me, and I had to trust him. I think the transaction made us both a bit nervous, but it did work out for us.

Good luck on the sale.

PS... make sure he gives you confirmation of insurance for the boat and trailer before the meeting/transfer.

Ask Magicfloat about that , I'm pretty sure he lost one last year because of that, if I'm not mistaken the customer totalled the boat/trailer on the way home after the purchase, no insurance in effect yet so the financial institute had no collateral, so no loan, so no payment to Magicfloat...Protect yourself at all cost. If anything happens to the boat/trailer before it's paid off, your still liable for your loan.

Yep. That's what I'm worried about.

This is pretty much the same deal we are working on...the problem is the "lag" in confirming the funds. On TV these transfers happen immediately but in the real world it takes some time. I'm thinking about looking into an escrow service...seems like that would protect both parties. I used escrow.com a couple of years ago to sell a Porsche engine and that seemed to work well. Not sure how it would work with a boat.

Chuck,

The transfer should be able to be seen by the bank within an hour after it is made. The actual posting of the funds to any account won't be available to the receiver until after midnight (which is when most systems post up transactions) on the day it is wired. Hope this helps.

BTW, how is Amy? Are you a Dad yet? Guess you'll have to bum rides this summer huh? We'll get you in.

Also, congrats on post #500.

It would be worth it to me to offer to put up the buyer up in a hotel for the night and treat him to diner so you have a peace of mind over the transfer and reduce your risk. Just my .02¢

As well you should be,,,if you don't protect yourself,,nobody else is going to.

The lien is held by Bank of the West. After a couple of calls I was able to get someone on the line with the actual bank rather than the call center in India...they basically told me what you said, so they will be able to verify funds.

In other news, Baby Charlie was born on Tuesday, May 29 at 4:15pm. Even better, we were able to get out on the boat over memorial weekend. It's funny because just as he was coming out my cell phone started vibrating...the potential buyer was calling for information about the 280SS. Later in the day I told Amy that I had a potential buyer she said " you are negotiating a boat deal on the day your son was born?" :)

And I was going to call you at some point to ask for ride...I can be the substitute boater if Yvonne doesn't want to go for a ride. ;)