Private sale, paying cash, what are the risks/procedures?

[Henro]

I recently started to think I might buy something used rather than new. Actually thinking of possibly buying a mini ex rather than a third tractor with sub frame backhoe.

But what I do not know is how to ensure a safe transaction when buying from a private individual. I am thinking the purchase price would be in the $12 to $15K range, if I could find something that looked like it was worth it in that range.

Do not even know the questions to ask! Take a picture of the seller's drivers license for ID and insist on delivery to my location before paying? AND get a signed bill of sale with serial numbers and specifics listed? I do not have a trailer to pick something up myself.

I am not talking about the obvious scams that you see on Craig's list, but equipment that you can go and see locally, and be convinced it is actually being offered by a real, local person, and that the item actually exists.

Any pointers would be greatly appreciated.

 

[BigG]

If you are unsure of the person you are buying from you should be able to contact the sheriff's office and check the VIN to see if it is stolen. Also ask for a copy of the release of lien to so that the machine is paid off. There is also an office in the courthouse that the liens are recorded. The machine may have been used for collateral or it may have a mechanics lien on it. So check there.

A bill of sale that is signed and a copy of the DL will also help. You might give a deposit and the balance paid upon delivery. There is no way I would pay for it and leave it there.

Ask for any and all maintenance records and manuals.

Pay attention to the person. If you get a bad "vibe" from him walk away. I do not care how good the deal is, if something does not smell right is is not right. Ask every question that comes to your mind about the machine. He should be able to answer everything such as where did you buy parts or service it. Is he ok with all the questions? He should be as he is asking for a lot of money for a used machine.

 

[PaulL]

All good advice. My other advice is to not be too paranoid. There are some scammers out there, but 95% of the people you meet are good people who're just selling a second hand machine that's surplus to their needs. You don't want to be rude to people, just be pragmatic and realistic about why you're asking questions, why you want particular things to give you safety.

 

[B737]

I agree with Paul. It’s easy to get over paranoid. The guy who bought my BX showed up nearly 20k in cash to my house with his rig. Never met him but spent enough time on the phone to feel somewhat comfortable.
A picture of someone’s drivers license prob isnt a bad idea. He did print out a piece of paper stating I sold him the equipment and the serial number of each item, with both our signatures. It hadn’t dawned on me but it protected him from me reporting it stolen, and it protected him if he was stopped by the police driving around with wads of cash. Then carting home a whole display of equipment on his giant trailer at ungodly hours.

I’ve actually met some people I now call friends and stay in touch with after large transactions when you find you have a lot in common. There are some interesting people out there, after you make it through the weeds.

 

[BigG]

I do not think being careful is being paranoid when they can come in and repo a piece of equipment and leave you holding the bag. $10-15,000 is a lot of money to lose for not doing your homework.

Watch this:

 

[skeets]

Ohhhhhhhhhhhh so thats why I keep getting stuff from Bob Cat

 

[Cathy Liebchen]

Run a ucc search on anything you are buying to see if it has a lien. Close it at your bank do the money verifies as good

 

[Henro]

Greatly appreciate the guidance given! Greatly helps me put my head straight in case I end up buying something from a private owner.

 

[shiraz627]

Here is how I did it with $33K excavator.It was part of an estate that I was administrating. The buyer was local, about 2 hours away. I told him everything I knew about the machine. Let him scrutinize the whole machine. He came back a few days later with someone else, after some haggling we agreed on a price. He wired the money to my bank account and then he sent someone to pick it up.

 

[NCL4701]

Definitely get the serial number, check it for UCC liens, mechanic liens, and ask local law enforcement if stolen. When you see the machine, as you’re looking over it make sure the serial number matches the one you were given and if the machine has it in more than one place make sure they all match. You can do all that in the background without interrogating the seller.

Early in my career I had a small part in what I thought was a sad situation where a farmer had bought a rather large used Deere tractor for around $150K. Turns out it was stolen, Deere dealer picked up on it first time he needed them to work on it, so law enforcement got involved and end result it was taken from him and returned to the rightful owner. Have had several more similar situations but none where the buyer was burned that bad. At least here, mere possession of stolen goods is a crime so trying to hold on to the machine and duke it out in civil court isn’t really an option if it’s stolen.

If you don’t feel comfortable doing the research, I’d suggest purchase either from a reputable dealer, reputable auction house, or someone close enough to you that you trust them with the full purchase price.

Just my opinion, if you go into it with zero research and trust the seller, it would probably be just fine majority of the time. If it isn’t fine, it’s a legal nightmare where you’re likely to lose both the machine and your money.

 

[D2Cat]

I've been on the other end of a sale, and wonder about the buyer! I do a lot of visiting before and then during pickup. I know before hand their living address, FB friend, family and comments. I take pictures of the truck, trailer and tractor secured on the trailer, and their intended roads back home. I also immediately check to make sure the cash is authentic.