When you sign a PABX (Partial Automobile Build-Up) bill of sale form with the seller, there are certain steps that need to be taken to ensure that your purchase is properly documented. Many non-professional buyers leave a lot of money on the table by not following certain steps to properly document their transactions.
The first step is to begin the documentation with the purchaser. While the purchaser should already have a workable idea of what is expected of them, it is always good to be clear in advance and to leave the purchaser with a copy of the copy. This way they can review it with their attorney and to make sure they understand all of the necessary information before signing the PABX (Partial Automobile Build-Up) form.
Next, put in place a paper trail. This should include a Certificate of Title that contains the vehicle description and the VIN (Vehicle Identification Number) of the vehicle. You may also want to secure a vehicle history report from the National Automotive Samples Registry (NAASR). This is a free service offered by the NAASR which will help to document all of the vehicles used in the sale.
The most important document is a Certified Bill of Sale, which should contain all of the required information. This includes a bill of sale, the seller’s information, description of the vehicle, financial details, and other pertinent information that the purchaser needs to know. It is very important to create a bill of sale from the original paperwork that the purchaser received. This is why it is so critical to keep a copy of everything.
Any PABX (Partial Automobile Build-Up) documentation that is sent out should be clearly marked “NOT for Deposit” or something similar. This is just a safety precaution. It is very important that the purchaser never gives out their credit card information. If it is ever requested by the seller or his attorney, the purchaser should not provide this information.
Once the transaction has been closed, it may be difficult to find any documentation to cover the purchase. This is because this type of purchase is not a bank loan, so it does not fall under the jurisdiction of the Federal Deposit Insurance Corporation (FDIC). Because of this, when you sell the vehicle, you may find yourself in the position of having to pay back the dealer for an over-the-counter (OTC) sale.
You can transfer the vehicle into a separate account for this purpose. When you transfer the vehicle, you are not allowed to change the dealer from the original buyer. Any subsequent paperwork should include the specific transaction number and the new car warranty.
The final step is to carefully review your PABX (Partial Automobile Build-Up) and any bills of sale that you send out. While not all bills of sale are fraudulent, you will want to double check each bill of sale for accuracy. If there is any question about the legitimacy of the bill of sale, you may want to request that it be reviewed by a lawyer to help protect your rights.