Process of buying a used car still being financed?

[Tobal]

I ran into a car that I want to pick up but the owner is currently still financing the car. I never really dealt with a situation like this with my other car purchases. How should I go upon making this transaction? This is a california car purchase and will be registerd in california if that matters. Also i will be paying all upfront.

 

[gene]

Find out who the lien holder is. Contact them for payoff and transfer policy. Bill of sale, DMV Docs etc.

 

[carmar]

I ran into a car that I want to pick up but the owner is currently still financing the car. I never really dealt with a situation like this with my other car purchases. How should I go upon making this transaction? This is a california car purchase and will be registerd in california if that matters. Also i will be paying all upfront.

Here are what you should do:

-go with the seller to his/her bank
-tell the bank that you gona to purchase the car and will paying up front
-of course, you might want to do bank wired transaction.
-before you start to wire the money
-make sure the the seller bank is giving you all the documentations indicating you are going to to be the lien holder/owner of the car. The documents need to be notarized and make sure all the vin # , names.. ect are correct.
-now call your bank and wire the money.
-you should be ready to register your car with DMV.
Enjoy your new ride

Hope, it helps.

 

[Tobal]

Thanks for the info,
Also have a few scenario I have questions to.
What if we paid of the bank and they said that the title will be mailed out to the "current" owner of the car? Do I just do a Bill of Sale? will this take care of the transaction? Is the bill of sale the main thing that is required to be notarized in this situation?

Also do Banks typically have the info and paperwork of transfer of ownership? If this might help, I will be dealing with Chevron-Texaco Credit Union.

Here are what you should do:

-go with the seller to his/her bank
-tell the bank that you gona to purchase the car and will paying up front
-of course, you might want to do bank wired transaction.
-before you start to wire the money
-make sure the the seller bank is giving you all the documentations indicating you are going to to be the lien holder/owner of the car. The documents need to be notarized and make sure all the vin # , names.. ect are correct.
-now call your bank and wire the money.
-you should be ready to register your car with DMV.
Enjoy your new ride

Hope, it helps.

 

[BD]

Are you financiang the car too? If you are, well, let me give you a scenerio, I bought a used car and I met up with the seller at the credit union. The credit union handled everything for me. I didn't have to do anything other than sign the loan docs.

 

[rasir_x]

Find out who the lien holder is. Contact them for payoff and transfer policy. Bill of sale, DMV Docs etc.

This seems correct what gene said. But, also make sure that the lein holder is payed off or second party and the rest of the money would go to the original owner. But, you must make sure you recieve a lien release that is notorized from the second party or they could repo the car saying you never payed them since the original owner never paid the lein off.

 

[Tobal]

Yea I have the full amount ready to pay off in cash or whatever form of payment. Not financing it. Typically the Lien release is given to me from the bank right and then I would have to go elsewhere to get it notarized?

 

[jond]

I had to deal with this when I got my NSX.
I had him fax me a copy of the title. I called his bank and verified he had a loan for a NSX with them. I then gave him enough for him to pay off his loan, and at the same time, I took the car. Then a week later(his bank was in another state) when he got the title, we met up and I gave him the rest of the money, and he gave me the title.

 

[Tobal]

what a pain of a process this is.

 

[94BlkNSXinNC]

Tobal,

Yes, this is in fact a pain to deal with (part of the reason a "private party" sale usually is a lower price...lower price=more headaches to get it done). Your bank should have a notary public to handle all the administrative process. Make sure you have the bill of sale and proof of insurance and you should be fine for operating the vehicle (double check CA requirements). The title will go to the current owner so that he can sign it over to you. This is a VERY important step and should be double checked before completing the sale. If CA is like most states, you will mail the signed-over title to the DOT (or just take it to the DMV to obtain a tag and registration, depending on the state process). The new title (reflecting your name) will be mailed to you, as there is no lien on the vehicle. I hope this helps. If you have any further questions, just ask the bank and/or DMV. Don't feel bad about asking questions, as this process is for a large purchase. You can never be too careful. Hopefully the current owner is a stand-up guy/gal, which will make the process easier. Good luck, and enjoy the ride!

 

[DocL]

I know I have posted numerous times on how to handle this type of transaction, but since I'm too tired to do a search I'll give you the Cliff's Notes version.

Have the deal done through an attorney and his escrow account. You give the attorney the money, he pays the off the lein with your money. Now, since an attorney is involved the seller probably won't be brave enough to take the title and car and run away. If you have an attorney friend he/she should be able to do this for you free of charge. This way everyone feels protected. This is how I've bought and sold cars that had outstanding loans still assigned to the car.

 

[Spinner]

Question: Who actually physically holds the title while the car is being financed? The bank or the one making the payments?

 

[NSX-GUY]

Every state is a little bit different. Either the seller OR the lender MAY be holding the title. One party or the other has it - in either case it should be present at the transfer of ownership.

In this case, since you are paying for it in full, simply cut a bank check for the full purchase price made out to him AND his lender.

Do the deal at HIS lender.

The lender will then take care of paying off the loan and giving him the balance. You will take posession of the title, signed by the seller AND the lender, along with a lien release letter (if necessary - normally the title, signed by both the previous owner/seller AND the lender is good enough) and bill of sale.

You will have all the documents and drive away with the car so you'll be happy and HIS lender will have HIS money for him so he'll be happy.