- how to pay for the car you found -
If you buy from abroad you should know that German sellers (private and commercial retailers) do not accept payment by cheque or by credit card. In your case, this means that you have to send the payment by Telegraphic Transfer (TT) to the sellers bank account. That can be a risk! Before transferring any funds, demand a pro forma invoice from the seller, check if the dealer has other cars in the yard, ask people you know in Germany to contact the dealer and/or to inspect the car.
When sending a wire to a German bank account please note:
Because of the actual Money Laundry Law the sender of each money transfer has to be identified. It's called "Know Your Customer Priciple" just KYC. Please send a passport copy to the seller when doing a transfer. And the sender of the funds has to be the consignee of the car. Wires from third persons can cause problems. Discuss all that with the seller before sending any funds.
No payments by Letter of Credit (LC):
This is normally a perfect methode of payment in international trade transactions, however, not for used cars!
It is a practicable transaction method for purchasing new vehicles in large numbers or very expensive machinery or equipement. No dealerships or private sellers of used cars will accept this payment method because: An LC takes time to clear and the banking fees are very high. Most sellers have no experience with exports and don’t know how an LC works. LCs are not commonly used to it in the second hand auto trade. Maybe people are also afraid of the excessive amount of beaurocracy LCs require. The used car trade is a business requiring fast turnarauound, and an LC simply takes too much time.
No honest seller will ask you for payments to be sent by Western Union, MoneyGram or Escrow!!!. For detailed information about not trustworthy sellers, click button Fraud Warning” on the left.
If you want me as your supplier for a used German car, if you want further information about German cars, if you need a partner in the German market:
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