If a seller is offering a $2,000 incentive, what’s standard procedure to actually receive the $2,000. My thought was just have them make a $2,000 payment on the lease before we do the swap? I’ve never done this before.
I did a swapalease deal a while back and did exactly that. That way, there’s no way for someone to take the incentive and run
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Thank you. Can you explain order of events between applying for lease transfer, signing on transfer, when you had seller pay, and how you confirm that was done?
I was the one offering the incentive, so I paid it to the lessor. Did so after things had been approved by the lessor, but prior to signing the official paperwork and handing over the car. I believe he was able to confirm with the lessor that the payment had been processed.
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There are escrow services for this reason, or perhaps PayPal does a similar thing. I wouldn’t wire anything to anyone.
I’m the buyer taking over a lease, other party is offering up-front money to take over.
I wouldn’t have them make a payment to towards the lease as there are too many things that could go wrong and hard to confirm in real-time.
Put together a contract that outlines all aspects of the deal and use an Escrow service for larger amounts. To protect both parties, it should be paid when the transfer is fully processed and new lessee takes possession of the car.
Then ask for a promissory note. Couple of sentences should cover it.
What can go wrong with them just paying, for example, GM Financial, the $2000 to their (in process of becoming my) account? My GM Financial accounts always update the next day after a payment has processed.
I have done this a bunch of times on swaps.
There are a number of reasonable approaches, many of which were mentioned above. Using a third-party escrow service is one way to do it, but there are fees involved. The person offering the incentive can also make advance payments to the account which can easily be verified. Lastly, both parties can simply agree to send/recieve a payment via PayPal, etc. right before the last stage of documents are finalized for the transfer. Honestly, this is not the safest approach and should only be done when you trust the other party.
Yes, if you can verify it in advance, but that’s not always possible. If I’m the original lessee, I’m not making a payment or giving you money until the captive let’s me know the transfer is complete, which at that point you are responsible for the car and you should take possession immediately. If the person is willing to make the payment in advance and you can verify it, there may not be a downside. I would still have something in place in writing that describes the transaction.
Because of the weird period where the application is submitted but the car is not technically yours yet, you should always feels like you can trust the person or likely should walk away.
What;s wrong with making a payment on your own account. Worse case the deal falls thru and you made your own payments early. Best case the deal goes thru and the buyer has less to pay off
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That’s what I thought. I’d be sketched out if the person offered to Paypal me the money after we close. And I haven’t used Paypal in probably 10 years.
You don’t buy anything on ebay?
Nope. Not in years.
gee, I’m so old. Where do young folks shop these days, swap shop, barter system?
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