Buying a car that from an indivual who still owes money on it

[SAWYER]

Ok I found a car I want to buy but the problem is the seller still owes money. I was going to pay cash but I was told I would have to wait on the title. I do not feel comfortable doing this, what do you suggest?

 

[Demon-Xanth]

Not sure about how the cash deal works, I know if you do financing the companies get together and do the transactions themselves.

 

[Vette73]

Cashiers check, Bill of sale(with ID and witness), and then take car with you and wait for title.

 

[boomhower]

Cashiers check, Bill of sale(with ID and witness), and then take car with you and wait for title.

What if he takes the money and runs? Likely, no. Possible, yes. Then the possibility exists the finance company finds the car, repos it, and the OP is screwed. Yes, the seller would face criminal and civil charges but the OP is still screwed. I wouldn't do it unless the finance company has a local office where the transaction could be done in person.

 

[kornphlake]

Make a partial payment to cover the balance on the loan and take ownership of the vehicle. Once the seller has paid off the outstanding balance on his loan and the lien is removed from the title (should only take a week or so) you give the seller the remainder of the agreed purchase price.

This way you have something the seller wants (the vehicle and a portion of the money) and the seller has something you want (the title and a portion of your money.) Both parties have something to loose if they don't follow up with their end of the deal.

You could look into a 3rd party escrow service that would do the same thing with less risk, but would probably cost something.

 

[StageLeft]

HE should already know how this works by contacting his lender; let him worry about the details. YOU will obviously only give him the cash with the title IN FRONT of you. So whether it's at a bank or whatever (probably will be) I imagine you sit down with him and somebody at that bank and they oversee. Don't give him crap without title in proximity.

 

[GuitarDaddy]

What if he takes the money and runs? Likely, no. Possible, yes. Then the possibility exists the finance company finds the car, repos it, and the OP is screwed. Yes, the seller would face criminal and civil charges but the OP is still screwed. I wouldn't do it unless the finance company has a local office where the transaction could be done in person.

Yep, this happens all the time. DO NOT give the seller cash or cashiers check for the full amount!

Best solution
Pay seller total price less whats owed, Pay the lender directly the balance owed and get a title release from the lender. Best handled with all parties present in the lender office.
Next best
Give the seller a two party cashiers check listing him and the lender as payees, which will force the seller to settle with the lender to secure their endorsement on the check. This still leaves you responsible for securing the lein release from the lender, and opens up the possibility for the seller to forge the lenders endorsement

 

[StageLeft]

..

 

[JulesMaximus]

I did this once with a co-worker. We went down to her bank (that held the title) and I paid the bank cash for what she owed on the vehicle and we signed a bill of sale so I could go to DMV and transfer ownership. Bank sent me the title in a couple weeks.

 

[mc866]

I did this once with a co-worker. We went down to her bank (that held the title) and I paid the bank cash for what she owed on the vehicle and we signed a bill of sale so I could go to DMV and transfer ownership. Bank sent me the title in a couple weeks.

I did this also but I was the seller. Just met at the credit union that held the loan. Paid it in full and got proof that the title was free and clear. The buyer then took the info to the DMV and got the title transferred. Was a pretty painless process.

 

[c3p0]

I did this also but I was the seller. Just met at the credit union that held the loan. Paid it in full and got proof that the title was free and clear. The buyer then took the info to the DMV and got the title transferred. Was a pretty painless process.

Only safe way to do this imo!!!

c3p0

 

[KeithP]

Ask the seller for a copy of his current title. Contact lien holder and ask how you should proceed.

-KeithP