Hello all. I am purchasing a car from a private seller. We have agreed on a price and are meeting tomorrow. He tells me that he has $6000-7000 left on the loan and wants to meet at the bank that is financing his loan (Bank of America) where I will pay off the loan, and then he will sign over the title to me and I will pay him the remaining amount. The car is $30,000 so I am assuming I will pay off the $7000 loan and then give him the remaining $23,000 while he hands me the title. Does this seem correct? Again, I have never bought private party and haven't dealt with paying off loans for other people's cars so I just want to make sure this all adds up. Thank you for your help.
Buying a car via private party, does this sound right?
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Am getting the PPI today, so this is assuming everything checks out.
That sounds like a good plan. I am assuming the private party pricing is not as out of control as the dealerships, correct?
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What are you getting for $30k? Not a Lambo I would guess.
It's a range rover, which have shot up in value as well, so assuming the inspection goes well (which it's a range rover so I doubt it), I'll definitely be coming in at least $5000 under market value. Private party seems the way to go these days.
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That's a fair process.
I usually sit down with a Banker and hand the Banker the true, finalized amount of the payoff (provided by the lienholder/bank) in cash. Then provide a second envelope to the seller with the remaining agreed amount while the seller simultaneously provides me the signed title + bill of sale.
+1 for ppi
I usually sit down with a Banker and hand the Banker the true, finalized amount of the payoff (provided by the lienholder/bank) in cash. Then provide a second envelope to the seller with the remaining agreed amount while the seller simultaneously provides me the signed title + bill of sale.
+1 for ppi
That is my gestalt of late and it's why I asked. Good luck!
Alright guys, update. Again, this is my first time buying private party, however, I did not know that the car having a lien on it meant the buyer does not actually have the title. Now I am worried that I am paying this guy in cash and not walking out with title in hand. Anyone ever dealt with anything like this? Are there any forms needed? I have a bill of sale document that will be filled out and signed, but do I need a vehicle power of attorney or something along those lines? Thanks again for your help.
Regarding this, how do you deal with the title? From what I understand, a car with a lien on it means the owner does not have the title. Did you use a power of attorney or something similar?
Range Rover. Will probably get rid of it in a year or two.
Did you ever have to deal with the buyer paying off the lien? I will be doing that in this situation so I won't get the title until it is sent to me.
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No, both of the ones I sold were paid off, but one of them was being financed by the new owner. Not sure if the other one was being financed or not. It is normal you will get the title in the mail. The ones I sold I had the title so I just handed it over. In one case I gave the title to the bank and the bank handed me a check. But back to your question I can't remember buy a car with a lien. I buy new or old junkers for projects. I haven't bought a used car since the late '70's.
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462 Posts
Just remember this rule:
1. The Car
2. The Title
3. The Money
No one gets all three.
1. The Car
2. The Title
3. The Money
No one gets all three.
Yeah that's what I'm worried about. I have no problem waiting a week or so to get the title, but I'm paying the bank and this gentleman first and then the bank will send me the title or send it to him and he will sign it over to me. He gets the cash while I get the lien release and bill of sale, but I'll have to wait for the title.
Title goes to the seller first
All boils down to trust or use an escrow company for peace of mind
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Not 100% true...
LOTS of banks as well as DEALERS, like myself have title in house and can sign off and provide at time of note pay-off completion.
Just ask the bank do they have title in house, you may be suprised.
California, as everything with California, is harder as of California has been required to got electronic titles. so actual TITLES or not on hand.
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