With financing arranged, the car inspected, and a deal in place it’s time to finalize the purchase of your classic vehicle. Ensuring a secure transaction, particularly if you’re buying from a distant seller, is essential. In this chapter, we’ll discuss best practices for payment, the importance of documentation, and how escrow services can protect both buyer and seller.
1. Document Everything
Whether you’re buying in person or completing the sale remotely, thorough documentation is key. Ask the seller for any records they have, including:
- Original Sales Paperwork: Window stickers, sales contracts, or prior titles.
- Maintenance Receipts: Demonstrates how well the car has been cared for over the years.
- Restoration Records: If the vehicle underwent a restoration, copies of parts receipts and work orders can confirm the quality of the build.
These records support the car’s legitimacy and value and can be invaluable if you decide to sell it down the road. Also it's great to know the history of the vehicle and pass it on.
2. Consider an Escrow Service
For long distance transactions, an escrow service can provide peace of mind. An escrow provider holds the buyer’s funds until all agreed upon conditions are met, usually the safe delivery and inspection of the vehicle.
- Beware of Seller Recommended Services: The choice of escrow company should be yours, as it primarily protects the buyer.
- Use Trusted Providers: eBay, for example, only recognizes Escrow.com for vehicle transactions. If a seller tries to push you toward a lesser-known service, that can be a red flag and you should thoroughly research the escrow company and website.
- Cost Considerations: Escrow fees typically scale with the purchase price, but are generally 1-2% of the sale.
3. Finalizing eBay Purchases
As covered in Chapter 5, if you found your car on eBay, completing the sale through the platform is crucial for buyer protection. Payments made via PayPal or credit card (where possible) qualify you for eBay’s Vehicle Purchase Protection Program—covering up to the vehicle’s cost (or $50,000) against non-delivery, misrepresented listings, and more. If you arrange financing, ensure the loan is approved in time to meet eBay’s payment requirements.
4. Finalizing Auction Purchases
Collector car auctions can be high adrenaline experiences. See Chapter 6 for a full breakdown. Once you win the bid, you’re legally bound to purchase the car. Make sure you:
- Have Financing Ready: Many auction houses require proof of funds or an approved bank letter before letting you bid over certain amounts.
- Pay Fees & Premiums: Some auctions charge a buyer’s premium (often 5–10%), plus sales tax, depending on the state. Factor these into your final budget.
- Collect All Paperwork: Secure the title, bill of sale, and any promised documentation immediately after you win.
5. Completing the Sale & Transfer
Once you’ve confirmed payment and received the title, you’ll need to handle registration and any tax obligations. Requirements vary by state, so check your local DMV’s guidelines. Keep receipts for any taxes paid out of state as you may receive a credit when you register the vehicle back home.
6. Final Tips for a Smooth Purchase
- Keep Copies: Duplicate all documents from the bill of sale to transportation contracts, for your personal records.
- Insure Immediately: Arrange classic car insurance as soon as you finalize the purchase, especially if you’ll be driving it home or having it shipped.
- Stay in Contact: If possible, maintain a friendly relationship with the seller. They might have additional parts, manuals, or knowledge that could be helpful later, and be able to have any questions you may have down the road of ownership.
Chapter 9 Conclusion
Purchasing a classic car can be a rewarding experience, provided you take the proper precautions to secure both the car and your investment. From gathering documentation and choosing a reputable escrow service, or making full use of eBay’s buyer protections, each step ensures you end up with a vehicle you’ll enjoy for years to come.
Chapter 8 - Classic Car Financing