# Selling a car - buyer wants a test drive



## elelegido (Sep 24, 2014)

You've advertised your car on Craigslist or Facebook Marketplace. How do you handle it when a potential buyer wants to test drive it?

Do you hand the keys over and let them go by themselves or do you go with them?
Do you ask to hold their driving licence/car keys/wife/etc as collateral?
Do you photograph their driving licence?
Do you check that they are insured to drive your car?

The situation type of situation I want to avoid when I sell a car is this:

"Chad" arrives to view a car and wants a test drive. The owner tells Chad no problem; the owner gets in the passenger seat and Chad gets in the driver's seat and starts her up. Chad drives out onto one of the main thoroughfares and drives through a camera intersection _just_ after the light turns red. There is a flash from behind and the owner knows that a photo was taken. A short distance up the road, Chad rear ends another vehicle. The owner gets out and gives the third party driver his insurance information. The owner is annoyed with Chad and tells him that the test drive is over and to get into the passenger seat. The owner drives both of them back to the owner's house. Chad gives the owner his phone number, promises the owner that he will pay for the damages and the ticket and then leaves.

Over the next few days, the owner is contacted by his insurance company and told that they will be accepting liability and will be paying out $2,000 to the third party on his behalf for the accident caused by Chad. He knows that his insurance will be going up next year because of this. The owner does not have collision cover because it's an older car and the estimate for his own damage is $1,500. On top of this, a citation arrives in the mail for the red light violation, with a price tag of $450.

The owner contacts the authorities and tells them that he was not driving; it was a man who had come to test drive the car. The authorities ask for the man's name. "Chad", says the owner. "Chad what?", they ask. "I don't know". replies the owner. "What's his address?", the authorities ask. "I don't know", replies the owner. "In that case, the ticket is yours. Pay within 30 days", they say.

The owner immediately phones Chad, only to find that the phone number he gave was false. Chad has disappeared and is untraceable.

Obviously the above would be a disaster. But it's easily preventable. I follow a set routine whenever I sell a vehicle. During the initial contact with a potential buyer I tell him/her that test drives are welcome, and the way it works is the following:

-- The potential buyer comes to see the car, and if they like it we agree a price, subject to test drive.
-- The potential buyer signs a purchase agreement that states that he/she has bought the car for the agreed price. The buyer fills in the agreement with their first and last names and their address, and signs it, as do I. The date and time of the sale is written on the document. There are two copies of the agreement; both are signed and each party keeps a copy.
-- The agreement contains a statement saying that _the purchaser can require the seller (me) to repurchase the vehicle from him/her within 20 minutes of the purchase date/time for the same price paid_, provided that the vehicle is still in the same condition as it was with no new damage.
-- I photograph the potential buyer's driving licence
-- The buyer gives me the agreed purchase price in cash

Note that the wording of the agreement is that the buyer can require me to repurchase the vehicle, not that the original sale is cancelled. This is important because the former means that the vehicle was always the property of the buyer during the test drive, while the latter does not.

This agreement allows the potential buyer to test drive the vehicle for a good 20 minute test drive, alone if required, with the understanding that if they don't like the vehicle they can get all of their money back. It protects me because, when they drive it off my driveway for their test drive, I no longer legally own the car. If they run through a red light and get photographed then I have proof that I am not the owner. If they get into an accident then they are responsible and nothing goes on my insurance because I am not the owner. If they damage the car then the car is already theirs and I will not be buying it back. This is also a great system for weeding out the tyre-kickers and test pilots who have no money and aren't interested in buying. The kind of buyers I want are the ones who have cash and are ready to do a deal.

There is often some pushback from potential buyers when I explain the system to them, mostly from the tyre-kickers and test pilots, which is fine. However, once I explain how my method works and why I have it, genuine buyers understand.

Anyway, that's how I handle this. How do you folks manage it?


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## bobby747 (Dec 29, 2015)

In theory good post. whats car worth?? say $2500. get photo of his D.L in case he is a car jacker. send it to your home computer or wifes phone. dont let chad drive this so called $2500 car. tell him for ins reasons. if you must . take him to a big parking lot and tell him only to go slow. do not put in on the highway so he can say thanks . i will let you know..have 3 cars owned over 100..at any real dealer we copy DL and give to MGR. to hold..


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## TomTheAnt (Jan 1, 2019)

You do what you gotta do, I guess. I sure as hell don't make it so complicated and has worked for me just fine the past 15-20 years I've been flipping cars.


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## BrainDead Driver (Dec 15, 2021)

Sure buyer puts his signiture onto the dotted line . Crash it . Will not pay for it . 
He says the brakes were faulty im not at fault. Even if you win he does not pay how do you get your money ?
Pointless piece of paper . Go for the test drive with the buyer no big deal.


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## Disgusted Driver (Jan 9, 2015)

Red light camera shouldn't be an issue, either they can prove I was driving or they can't. 

Accident, that's what you have insurance for. 

I've only sold a few cars privately but I've never had anything crazy happen.


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## TomTheAnt (Jan 1, 2019)

Disgusted Driver said:


> Red light camera shouldn't be an issue, either they can prove I was driving or they can't.


Nope. Not that easy. At least not in Texas it wasn't. Until they were deemed illegal and were (mostly) removed three years ago.


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## Disgusted Driver (Jan 9, 2015)

TomTheAnt said:


> Nope. Not that easy. At least not in Texas it wasn't. Until they were deemed illegal and were (mostly) removed three years ago.


Well that's BS. Here in Raleigh, you are able to return them with a simple I wasn't driving (they do have a picture so you better not be smiling at the camera). They have a section where I can identify who was driving but I don't have to fill that out. It's not my job to tell them who was driving and I may not know.


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## New2This (Dec 27, 2015)

Disgusted Driver said:


> Red light camera shouldn't be an issue, either they can prove I was driving or they can't.
> 
> Accident, that's what you have insurance for.
> 
> I've only sold a few cars privately but I've never had anything crazy happen.


It varies by jurisdiction. 

D.C. the owner is on the hook. Period. 

The D.C. Government does very few things well. Extracting money from vehicle owners is one thing they do well.


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## Seamus (Jun 21, 2018)

elelegido said:


> Do you check that they are insured to drive your car?


Your insurance is what will be used. Cars are insured, not drivers.


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## elelegido (Sep 24, 2014)

TomTheAnt said:


> You do what you gotta do, I guess. I sure as hell don't make it so complicated and has worked for me just fine the past 15-20 years I've been flipping cars.


Sure, rolling the dice and taking the chance is indeed an option. I think most people do this.


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## elelegido (Sep 24, 2014)

BrainDead Driver said:


> Sure buyer puts his signiture onto the dotted line . Crash it . Will not pay for it .
> He says the brakes were faulty im not at fault. Even if you win he does not pay how do you get your money ?
> Pointless piece of paper . Go for the test drive with the buyer no big deal.


No, you evidently didn't read my post carefully. The part you missed was:


> -- The buyer gives me the agreed purchase price in cash


I don't have a pointless piece of paper from the buyer. I have lots of very useful pieces of paper from the buyer; they all have Benjamin Franklin or Andrew Jackson on them! 

If I were to use your method of "Go for the test drive with the buyer no big deal", then the buyer could say precisely what you say: "He says the brakes were faulty im not at fault". In such a case, being with the potential buyer in your car when he crashes it is of no benefit to you. As you correctly state, he could just make an excuse that the car was faulty. He can then get out and then take an Uber back to his car and drive home! Or, he could say, "Ok, send me a repairs estimate and I'll mail you a check".

No. With my method, I have his money and he owns the car during the test drive. If he crashes it, then I'm the one who gets out and takes an Uber home, already paid in full. No need to "win" anything or worry about "how do you get your money".


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## elelegido (Sep 24, 2014)

Disgusted Driver said:


> Accident, that's what you have insurance for.


Doesn't apply to me. I drive lower-value cars, so I don't maintain collision cover. 

If you do have full coverage and are willing to take the risk of paying the deductible and having your insurance premiums go up after an accident caused by the test driver then that's personal choice. If I had full coverage I probably would not take that risk.


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## Disgusted Driver (Jan 9, 2015)

New2This said:


> It varies by jurisdiction.
> 
> D.C. the owner is on the hook. Period.
> 
> The D.C. Government does very few things well. Extracting money from vehicle owners is one thing they do well.


I was just in DC this past weekend and I don't know how folks do Uber there downtown, or anywhere for that matter, especially during the day. It reminds me of why I left NYC: too many lights, too much traffic, too many aholes with attitudes.


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## Merc49 (Apr 30, 2019)

I test drove my first wife and there was no takesees backsees. I was stuck with her until her piston bore was worn out and her lube dried up. And her rearend was dragging, her exhaust was a leakin, her tank was overfull, and a terrible screeching sound was heard everytime her intake opened up.


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## New2This (Dec 27, 2015)

Disgusted Driver said:


> I was just in DC this past weekend and I don't know how folks do Uber there downtown, or anywhere for that matter, especially during the day. It reminds me of why I left NYC: too many lights, too much traffic, too many aholes with attitudes.


I moved away last year.

I'm in an area with lax enforcement of traffic laws (almost no traffic cameras), open roads and much less traffic.

I have to go back to D.C. next month. It will suck a big one driving there.


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