Purchasing used car

[overst33r]

I'm looking at buying a car about 300mi away from my area. I'm looking to pay about $12,000.

My questions are as follows:

• What is the best method of payment? (Keep in mind the car has a lien on it)

• With said lien on it, I will make out my payment method to the lien holder, correct?

• Since the car has a lien on it, is it possible to complete the transaction on a weekend since the bank will most likely be closed?

My biggest uncertainty is how to take care of this on a weekend since the bank probably won't be open. Ideally I'd like to go to the lien holder and pay them with a cashiers cheque with the seller present. I will also make a bill of sale for the transaction.

Basically, what would be the process to have a smooth transaction without getting screwed or having to drive 300mi because I forgot something?

 

[Vette73]

Suitcase full of cash, only way to travel.


Send funds in advance, Bank check. Make sure title is there with car when you get there.

 

[overst33r]

Originally posted by: Marlin1975
Suitcase full of cash, only way to travel.


Send funds in advance, Bank check. Make sure title is there with car when you get there.

But I haven't seen the car in person...

 

[Vette73]

Originally posted by: mariok2006

Originally posted by: Marlin1975
Suitcase full of cash, only way to travel.


Send funds in advance, Bank check. Make sure title is there with car when you get there.

But I haven't seen the car in person...

Then still use a bank check and make sure he and you sign a bill of sale. Make sure someone else ewitness's it. Then you trust him to send the title.

 

[overst33r]

Originally posted by: Marlin1975

Originally posted by: mariok2006

Originally posted by: Marlin1975
Suitcase full of cash, only way to travel.


Send funds in advance, Bank check. Make sure title is there with car when you get there.

But I haven't seen the car in person...

Then still use a bank check and make sure he and you sign a bill of sale. Make sure someone else ewitness's it. Then you trust him to send the title.

Are you saying to send the funds to bank or to him? I want to avoid relying on the seller to send me the title for obvious reasons...

 

[GoatMonkey]

If you're getting a loan, you need to have the money in your bank account before you go over there. The bank should be able to write you a cashier's check on the weekend. Just don't go over there thinking you can apply for a loan and pay for the car in one day the way you would at a dealership. You've probably in for some trouble with this though, because to get the loan the lender is going to want details about the car.

 

[DivideBYZero]

Leave the money, in unmarked bills and unmarked plastic bag, at the designated drop point.

 

[DivideBYZero]

Oops, that was from another document I was writing...

 

[razor2025]

So essentially you want some kind of escrow service?

 

[overst33r]

Originally posted by: razor2025
So essentially you want some kind of escrow service?

Not if it's possible to do without one.

Originally posted by: GoatMonkey
If you're getting a loan, you need to have the money in your bank account before you go over there. The bank should be able to write you a cashier's check on the weekend. Just don't go over there thinking you can apply for a loan and pay for the car in one day the way you would at a dealership. You've probably in for some trouble with this though, because to get the loan the lender is going to want details about the car.

I doubt I'll be getting a loan, just cash in the form of a cashier's check.

Let's say I were to get a loan though, that would have to be arranged before I buy the car with my bank, but since I don't know what I'm gonna pay for the car yet, I can't really just give them a ballpark number... It just seems much more complicated with a loan...

 

[overst33r]

Another issue I have is that my bank does not have any branches in the area the car is located in.

So I called the bank that holds the lien to the car and they basically said:

1. Pay the seller
2. He/she pays the lien bank
3. The bank releases the lien on the title electronically to DMV
4. Paperwork is given to seller and then sent tome to transfer the title.
5. Get bill of sale notarized.

Does that sound about right?

Since my bank has no branches in that area, I plan on making out a cashier's cheque in an amount less than I'm going to pay for the car and make up the rest in cash. (This is to basically offer myself the ability to negotiate up or down)

 

[NAC]

When I bought my car, it was much closer.
I paid by regular check, and me and the seller sealed the check in an envelop to the lien holder. We put it in the mailbox together.
He left the car at my place (without title of course)
A week or two later, he got the title and brought it to me. He said he was unable to get it directly mailed to me. Did his bank say they could mail it directly to you?

In your case, perhaps you can do the first step together - mail the check. A cashiers check would cash quicker and get you the title quicker, but you'll run into the exact amount problem you mentioned.

If you then leave without the car, he has paid off his loan, has the title coming to him, and has the car. You have a bill of sale. Good luck getting the car if he decides to move and pocket the $12k. I assume you could, but it might be tough. And if he were the type to do that, he might decide to sell the car 5 times, in which case 5 people would be lined up for money back or the car.

Instead, I think you should convince him to let you drive the car home. You wont be able to register it unless you get the title, so he is protected a bit if your check bounces. Some states allow you to get temp plates without the title I believe. I believe my state - NJ does not. If the state does not allow you to get a temp plate, you'll have to borrow his plates and mail them back, or just put a plate from your other or friend's car on the one you are buying, and drive each home with one plate. Illegal I believe.

But that way, you'll have the car and bill of sale, and he'll have the title coming to his house.

 

[ponyo]

Originally posted by: mariok2006
Another issue I have is that my bank does not have any branches in the area the car is located in.

So I called the bank that holds the lien to the car and they basically said:

1. Pay the seller
2. He/she pays the lien bank
3. The bank releases the lien on the title electronically to DMV
4. Paperwork is given to seller and then sent tome to transfer the title.
5. Get bill of sale notarized.

Does that sound about right?

Since my bank has no branches in that area, I plan on making out a cashier's cheque in an amount less than I'm going to pay for the car and make up the rest in cash. (This is to basically offer myself the ability to negotiate up or down)

This is why I hate buying used car without a clear title. When my cousin bought his car recently from a private party, we made the check out to the credit union that held the lien. We went with the seller to the CU and paid off the lien and got the bill of sale notarized. We drove home with the car and the seller went to the DMV couple days later and sent the title to my cousin via mail. There is some level of trust involved in this kind of transaction but luckily everything worked out.

Are you upgrading to S2000?

 

[overst33r]

Originally posted by: Naustica

Originally posted by: mariok2006
Another issue I have is that my bank does not have any branches in the area the car is located in.

So I called the bank that holds the lien to the car and they basically said:

1. Pay the seller
2. He/she pays the lien bank
3. The bank releases the lien on the title electronically to DMV
4. Paperwork is given to seller and then sent tome to transfer the title.
5. Get bill of sale notarized.

Does that sound about right?

Since my bank has no branches in that area, I plan on making out a cashier's cheque in an amount less than I'm going to pay for the car and make up the rest in cash. (This is to basically offer myself the ability to negotiate up or down)

This is why I hate buying used car without a clear title. When my cousin bought his car recently from a private party, we made the check out to the credit union that held the lien. We went with the seller to the CU and paid off the lien and got the bill of sale notarized. We drove home with the car and the seller went to the DMV couple days later and sent the title to my cousin via mail. There is some level of trust involved in this kind of transaction but luckily everything worked out.

Are you upgrading to S2000?

I am just surprised that there isn't a surefire way to do this kind of transaction. As you and NAC mentioned in your experiences, I hope to drive the car home with a notarized bill of sale to cover my butt, but if he declines to let me drive it home, I'll have to think of something else...

Yep, I'm getting an S2000. It was the car I wanted in the first place, but it just didn't make financial sense at the time, so I settled for the Miata. It's been fun to drive, but not particularly reliable. I'm not going to blame that on the car, but rather the maintenance schedule it has had throughout its life, but overall the experience wasn't what I thought it would have been. I guess I expected too much from a 14 year old car.