I have a buyer that wants to conduct the transfer through a used car dealership. In other words, the dealership would buy the car from me and resell it back to my buyer. They are charging a service fee of $300. Only reason why I'm considering this is because this buyer is willing to pay a lot more for the car than any other offers I've received.

Has anyone does this before? I'm assuming the dealership just brokers the sell of the car. How easy is it? Anything I should be aware of?

Thanks guys!

 

I am confused about this, why does he want to do that? Where I come from, you save tax by selling privately as opposed to purchasing from a dealer. Is there some service of theirs that he is hoping to take advantage of by doing this?

If he's looking for a warranty, you can get the same that the dealer would offer from a third company party. If he's looking for "security" buying from a dealer, I wouldn't expect it from this since if there were ever some future issue that required legal action against the dealership then their (strong) argument would be that they knew nothing of the car and simply acted as a blind intermediary.

Could you explain more?

 

Doesn't make much sense for the tax reason alone, I would be leary.

 

Uh... what the HELL is their to be leary about you guys?

Stooken would sell the car to the dealership --THEN STOOKEN IS DONE. He gets the money from the dealership... and its over.

The dealership then charges a $300 fee for being the middle man, and sells the car to the new owner.

Someone would do this because its easier to get financing through a dealership then it is privately.

 

It makes perfect sense.

#1, Easier to obtain financing through a dealership than a private party sale.

#2. Lower interest rates on dealer loans than private party loans, which can save some one who's buying a $20k car a grand or so in the long run.

#3. Liability, they always have someone to bring the car back to for problems.

 

It's actually a used car dealership. I guess they feel more comfortable having a 3rd party conduct the transaction. They have the cash to buy it so money isn't the issue. It's security.

 

Well if it's cash, then I'm not totally sure. Do they have a trade? If so, then maybe it's to save on taxes?

 

[QUOTE=nastinupe1,Jul 22 2007, 04:12 PM] Well if it's cash, then I'm not totally sure.

 

1. I had very little credit when I bought my car, and no investments but had no trouble getting multiple banks to offer me financing. This person isn't even looking to finance.

2. I got better rates through my bank than through the dealer. Again, this buyer isn't looking to finance.

3. A broker in this case will never be held responsible for the condition of the car or problems that come up later because their only involvement is to take the keys from the seller and hand them to the buyer. This is after their involvement is being solicited by the buyer. No way they would be responsible, or willing to accept responsibility for any future problems for a $300 fee.

This is just a weird situation, why not save on the taxes, split the amount that it will cost extra to pay the taxes between the buyer and seller and do it directly.

I don't understand the justification for doing this still.

 

sounds wierd?

at least i've never heard of it. and I wouldn't do it. Too many hands in the deal.

make the transaction at a bank. that's where i make all of mine.

I get the money in my account, I hand over my keys right then and there.

Simple, done, everyone's happy.