questions about buying car

[dethman]

okay so i've agreed in principle to buy an 2003 M3 from a guy about 400 miles away. i have a few questions since i have not bought from a private party before:

1) if i drive home 400 miles, how does the car insurance work? should i tell them i'm buying a car, even though i haven't committed to buying yet?

2) the guy does not have the title and is financing the car, do i pay him or his bank to get the title on the car? will i have to set up a meeting with the bank?

3) what process do i go through to transfer the title to my name?

thanks. let's see what kind of responses i get from ATOT.

 

[Pepsi90919]

1. get the vin and add it to your insurance.

 

[Zenmervolt]

1) Call your insurance company. My providers (State Farm and Allstate) have always given a grace period where they will cover a newly-purchased vehicle as long as you have an existing policy with them. This period is typically 30 days but may vary depending upon how your coverage is structured. Call them and ask. They will not charge you extra just for calling to double check.

2) Do not ever take the car without having the title first signed over to you. Never. Until the title is signed over to you, the car is still legally his. While you might be able to prove in court later that he did sell you the car, that's still a long time and many dollars away from the time that he phones the car in as stolen. It's not a likely scenario, but the downside potential is huge, so do not, I repeat, do not, take possession of the vehicle without the title having first been signed over.

3) Transferring the title (different from signing it over) can be done at your county's clerk of courts (or so it was in Ohio) or your state's vehicle title office. They will be in the phone book and are generally only a door or two away from the license bureau, where you will need to get plates.

ZV

 

[DAGTA]

Originally posted by: Zenmervolt
2) Do not ever take the car without having the title first signed over to you. Never. Until the title is signed over to you, the car is still legally his. While you might be able to prove in court later that he did sell you the car, that's still a long time and many dollars away from the time that he phones the car in as stolen. It's not a likely scenario, but the downside potential is huge, so do not, I repeat, do not, take possession of the vehicle without the title having first been signed over.

This is difficult if the seller still has a loan out on the car. In that situation, the bank is likely still holding the title. (I'm in this exact situation right now). While I'm trying to find a better way to do it, I've been told by the bank to use a notarized Bill of Sale when selling the car. Use the sale money to pay off the loan. Get the title two weeks later. Send the title to the buyer. If you know of a way around this, please post. I'm really wanting to know since I don't like this situation either.

 

[deadlyapp]

A bill of sale that is signed by both of you and notorized is how you do it when theres a loan involved from what ive heard.

If it is paid off it is quite a bit easier. I just bought a used car, all that hapened was title signed, registration signed, check handed over, and we left.

 

[StageLeft]

Ask him if he has the title. If so, get it when you're there. If not, he doesn't get a penny until you and him and the bank (set up a time and both go in there) sort it out. The bank won't have the title at that branch, but they'll be able to confirm the car is now yours and send the title in a couple of weeks.

 

[flot]

Originally posted by: Zenmervolt
2) Do not ever take the car without having the title first signed over to you. Never. Until the title is signed over to you, the car is still legally his. While you might be able to prove in court later that he did sell you the car, that's still a long time and many dollars away from the time that he phones the car in as stolen. It's not a likely scenario, but the downside potential is huge, so do not, I repeat, do not, take possession of the vehicle without the title having first been signed over.

With cars less than 3-5 years old, the seller rarely has the title, becuase they rarely own the vehicle outright. It is usually financed and they are usually selling to pay it off. I've never heard any good alternative but to trust that the seller is, in fact, going to pay the loan off with your $$. (which sounds ridiculous, but that's just the way it is)

 

[dethman]

Originally posted by: flot

Originally posted by: Zenmervolt
2) Do not ever take the car without having the title first signed over to you. Never. Until the title is signed over to you, the car is still legally his. While you might be able to prove in court later that he did sell you the car, that's still a long time and many dollars away from the time that he phones the car in as stolen. It's not a likely scenario, but the downside potential is huge, so do not, I repeat, do not, take possession of the vehicle without the title having first been signed over.

With cars less than 3-5 years old, the seller rarely has the title, becuase they rarely own the vehicle outright. It is usually financed and they are usually selling to pay it off. I've never heard any good alternative but to trust that the seller is, in fact, going to pay the loan off with your $$. (which sounds ridiculous, but that's just the way it is)

hmm i sure as hell don't want to hand over a 45K check to the trust of a total stranger.

 

[dethman]

so i talked with the owner, and he is financing the car, and doesn't have the title.

so should i go to the bank with him, and give the bank my check? i exactly don't want to give the seller the check and trust he will pay off the loan with it, notarized bill of sale, or not.

 

[DAGTA]

Originally posted by: dethman
so i talked with the owner, and he is financing the car, and doesn't have the title.

so should i go to the bank with him, and give the bank my check? i exactly don't want to give the seller the check and trust he will pay off the loan with it, notarized bill of sale, or not.

That sounds like the best course of action to me. Make certain you don't leave that bank until you have a signed document showing you own that car.