I need some advice. I've come to an agreement with a buyer regarding my M5. I'm in FL and he is in MO. He plans to fly in, pay me and drive the car home. Seems fine, right? Here's the tricky part. His credit union, in order to issue him a check to pay me for the car, will require me to FedEx them the title to the car. Their explanation is that they need the title to the car as collateral in order to issue him the check.
What seems strange to me is that I will be sending off the title to the car without having been paid for the car. I've sold lots of cars over the years but can't recall a transaction of this nature. Is this a common practice I'm unaware of?
Thanks!
Sounds secure for a credit union to do. Where is he in MO and what is the name of the credit union?
When I was looking at the S2k CR over in CA, the "the lender needs the title before issuing the check but we can't give them the title without the check so you have to use our lender" statement would imply that it's fairly common practice.
IIRC our credit union requires a copy of the title that's been signed by the owner so they can (a) check it is a clean title and (b) the owner knows where to sign it. That's for a private sale btw.
N Sperlo wrote:
Sounds secure for a credit union to do. Where is he in MO and what is the name of the credit union?
He is somewhere near St. Louis. The credit union is:
First Community Credit Union
P.O. Box 1030
Chesterfield, MO 63006
Datsun1500 wrote:
Get a duplicate title. Send them one. When he shows up with $$ throw the other one away
Illegal. AKA fraud. Of course they may be committing fraud. Trickaaay. 
In reply to dyintorace:
That is a very common credit union around here. If you are shipping to them, I would consider it legit. I'd give them a call. (636)537-4400
Good to know they are legit. Thanks.
If you need any local to STL help, PM me and my phone will catch it. Chesterfield is a rich area. Lots of high end automobiles around there. Just checked yours out and she's a beaut. Your M5 should fit in at any High School. I'm sure daddy is buying it.
Good luck. 
N Sperlo wrote:
If you need any local to STL help, PM me and my phone will catch it. Chesterfield is a rich area. Lots of high end automobiles around there. Just checked yours out and she's a beaut. Your M5 should fit in at any High School. I'm sure daddy is buying it.
Good luck.
Thanks for the offer of help! In the buyer's defense, he's married and employed. Evidently his 540 met an untimely demise and he is replacing it with my car.
alex
SuperDork
1/25/12 4:28 p.m.
Additional muscle available in St. Louis if anybody needs persuadin' here. I likes roughin' up some Chesterfield W.A.S.P.s. 
Don't mess with the GRM network! It's like the Firm (but better).
assuming they are a recognized cu. i'd probably draft a simple escrow agreement for them to sign before you will send them the title that says they are holding it in escrow vs delivery of funds to you, that if funds are wired to your account ( include fed funds codes to your bank/your account) within 5 days then they keep if no funds they agree to return title. get an officer of cu the execute. course i'm a lawyer so you might want to get help
