fatto gatto racing

This might seem like a mundane and superficial subject but there are a few things to consider, especially when long distances are involved.  First of all, it is assumed you are content with the condition of the car and have agreed on a price with the seller.  How do you transfer the money to him?  Do you send the full amount before he ships the car and spares?  How can you guarantee the seller will actually ship the car and spares as agreed?

Looking at these in reverse order, if there is any doubt at all the seller will ship the car and spares as agreed then, in my opinion, the deal should be called off immediately.  If you are not comfortable taking the individual's word regarding shipping then how can you trust him regarding the condition of the car and spares?  However, this can be resolved by arranging to be present as the car and spares are loaded.  In this situation there should be no question as to how to pay for the transaction:  hand the individual a cashier's check for the full amount, or cash if he prefers.  This would seem to be the best method of transferring the funds and control of the car.

However, often the deal is made over the phone, based on pictures or a professional inspection, requiring the use of a shipping company, and a measure of trust must be involved.  Dealing with a sale within the United States is easier than an international transaction.  Sometimes a deposit may be involved, required by the seller before he will prepare the car and spares for shipment.  Sometimes the transfer of the entire sale price will be needed.  Here is where the measure of trust is required.  If you are naturally suspicious, or have been burned before, you may require an amount of control before money is exchanged.  Try to work this out in a gentlemanly manner.  You might be able to get the seller to take a small deposit with the rest being paid on word from the shipper that the car has indeed been collected and it is enroute.  If that can not be accomplished you can always arrange for some protection, at a price.  A local attorney may be contracted to hold the funds in escrow until proof the shipper has collected the car. 

If the sale involves a car in another country then either a personal visit or the use of a broker is almost required.  A personal visit allows for the inspection of the car and spares and provides an opportunity to meet the owner and establish a rapport which can lend itself to determining the best method of transferring funds.  It is understandable that an individual will be reluctant to release his car without having been fully paid.  It is just as understandable that a buyer would be averse to sending large sums of money to a foreign country with no guarantee of receiving what was agreed upon.  Again, the use of a professional shipper can be a valuable resource.  Given the shipper is reliable (why use someone else?) often you can arrange for the seller, upon receipt of an agreed-upon deposit, to deliver the goods to the shipper.  At this point the shipper can acknowledge the goods are in his control.  At this time the rest of the money can be transferred.  Obviously the entire balance will need to be deposited in the seller's bank account prior to the actual shipping of the car and spares.  An alternative would be to use a broker or known agent to effect the same arrangements.  It must be understood that these go-betweens will never guarantee the condition or completeness of the shipment:  only that the agreed upon details have been completed.

Once the details of the transaction have been decided, what is the best way to effect the transfer of funds?  Assuming a U.S. based transaction, the best method is to FedEx a personal check to the individual.  Why not a cashier's check?  Unfortunately, most banks will not immediately accept the validity of a cashier's check drawn on another bank.  Due to the technological advances, anything can be forged.  One would think the receiving bank could call the issuing bank to verify the funds are indeed available, a cashier's check for the specified amount was drawn on the date specified, and place a hold on the funds.  During the days of having a personalized banking service this was common.  Now you need to have a solid relationship with your branch manager to be able to get this service.  It often takes three to four days to clear a cashier's check:  about the same amount of time as it takes for a personal check.  Just explain your logic to the seller and let him know you are expecting to wait until the check clears before any further movement.  Another benefit of using a personal check is that in the unlikely event your FedEx Overnight Letter is lost you are not faced with the task of canceling the cashier's check or the risk of it being cashed.  A personal check made out to an individual is easier to cancel.  And, you avoid the cost of a cashier's check.

If the transfer of money must occur very quickly then a bank wire is the answer.  Be aware this will cost both the sender and receiver due to the modern banking system's penchant for ripping off the customer at every turn.  Most banks will charge from $10.00 to $15.00 at each end of the transfer.  A blatant ripoff, but what can you do other than avoid this situation?  If you are a good customer often your branch manager will waive the transfer fee at your end if you complain a bit.  Before you go into the bank to wire the funds be sure to have all the required information, including the recipient's name, his bank name and address, his account number, and any other references possible.  It is best if you have his bank's SWIFT number.  This is a worldwide code that is unique to the bank and should preclude the need for any other information other than his account number.  However, since the U.S. banking system is so far behind the rest of the world in this area, have all possible information available.  Also, be aware that a wire is by no means instant.  A domestic wire will normally be processed the same day if presented before 2:00 PM.  However, that means it will go out that evening, be received by the destination bank the following day, and may be processed after 2:00 PM, thereby depositing the money into the recipient's account on the next day, by 2:00 PM.  An international wire usually has to be processed by 11:00 AM to guarantee it will be acted upon that day.   Be sure to check these details, as a wire can easily take two to three days.  There are quicker ways but these involve a money brokerage account and are available only if several transactions a year are made.

What if currency conversions are required?  Be very careful and do your homework.  An actual case will demonstrate the pitfalls.  There was a need to transfer 25,000 Pounds Sterling to an account in Great Britain.  On checking with a Federal bank in the U.S. the cost of converting U.S. dollars into this amount was over $800.00.  This was whether the amount was in the form of a cashier's check or wired.  (Of course an extra wire fee [$42.00 for international] would be tacked onto this cost.)  On calling the recipient, and having him check with his bank, it was determined his bank would charge about $75.00 to convert the U.S. dollars into Pounds Sterling.  The agreement was reached that an additional $75.00 would be added to the amount and a wire in U.S. funds, based on the official exchange rate, was on the way.  (A wire in this case was about the same cost as a FedEx International Letter and provided for greater security.)

The transfer of funds can be complicated but, with a little planning, preparation, and solid understanding between the parties involved, it need not be a traumatic experience.