How Auto Escrow Works

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Auto Escrow refers to the third party escrow service that is used when the sale and purchase of an auto is carried out, which may include a car, boat, motorcycle, truck or other vehicle that moves with the assistance of an engine.

Once a purchaser has found the auto that they wish to purchase they will enlist the services of Escrow.com, who will draw up terms that both parties will agree to. These terms will include, but are not limited to, the make and model of the auto, price, condition and will also list details of a cooling off period which will give the purchaser the opportunity to ensure there are no undisclosed faults with the auto before funds are released to the seller.

Once both parties have agreed to the terms set by Escrow.com, the purchaser will transfer the appropriate funds using a secure online facility set up by Escrow.com where it will remain until the seller fulfills their obligations surrounding the sale.

Once the payment is confirmed by escrow, the seller must dispatch the auto to the purchaser along with all relevant documentation surrounding the registration of the auto. The buyer has an agreed time limit to examine the auto and check that everything is in the condition that was promised when the terms of escrow were documented. There is an opportunity to reject the auto at this stage if any elements are not in order as initially agreed.

If the purchaser is satisfied that the auto is in the condition that they agreed to when it was purchased, Escrow.com will release the funds to the vendor and the transaction will be completed. There is a large element of risk involved on the parts of both the buyer and seller when carrying out auto transactions, and Escrow.com eliminates these risks entirely.

Without escrow the buyer is at risk that the vendor will sell to another purchaser before the transaction is complete, there is a risk that the goods will not be provided on the condition that they are promised, and there is a risk that once money is deposited to the seller they may no longer be contactable before the purchaser has received their auto. Risks to the seller include dealing with people whose only intention is to waste time and having to trust that a stranger will take the auto for a test drive and return it in the same condition.

Escrow.com eliminates all risks that are currently faced by both the buyer and seller. It will give confidence to the vendor that funds will be provided as soon as they have fulfilled their obligations and terms of escrow and it gives confidence to the purchaser that they are paying for an auto that is in the condition that they believe it to be in.

If any disputes or queries arise throughout the process, an agent provided by Escrow.com will work to resolve these to ensure that a resolution is met by both parties. Escrow.com provides a level of safety and security that is not available throughout an auto transaction that is based solely on trust with small fees and exceptional service.

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