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I found a used '97 Honda Civic off Craigslist that seems to be in pretty good condition. Met the seller, had a mechanic take a look at the car and it checks out fine. Only, one problem. The seller bought this car from a dealership about two months ago and never registered the vehicle in his name. It technically still belongs to the dealership; the space on the original title where the buyer's name should be is blank. The seller said it will basically go from the dealership to me when I title the vehicle.
The seller filled out two Bills of Sale. On one, he himself signed the name of the dealership and the previous owner of the car and signed his own name in the Buyer's portion. On the other Bill of Sale, he signed his name in the Seller's portion and the Buyer's part is left blank for me to sign.
I'm pretty sure that him signing the previous owner's name himself is illegal, but can anyone tell me if I might run into trouble attempting to title this vehicle in my own name after I bought this car? I haven't bought it yet, but what should I know here?
Oh, and another thing is, I ran the Carfax for this car. It does show that it was sold to the dealership that the seller bought it from. I know he's not lying about that.
If it's a relatively low amount and everything else is fine, I might risk it. But it is shady and if you run into issues with the title, the RMV is not sympathetic. It could end up being more trouble than it's worth.
I found a used '97 Honda Civic off Craigslist that seems to be in pretty good condition. Met the seller, had a mechanic take a look at the car and it checks out fine. Only, one problem. The seller bought this car from a dealership about two months ago and never registered the vehicle in his name. It technically still belongs to the dealership; the space on the original title where the buyer's name should be is blank. The seller said it will basically go from the dealership to me when I title the vehicle.
The seller filled out two Bills of Sale. On one, he himself signed the name of the dealership and the previous owner of the car and signed his own name in the Buyer's portion. On the other Bill of Sale, he signed his name in the Seller's portion and the Buyer's part is left blank for me to sign.
I'm pretty sure that him signing the previous owner's name himself is illegal, but can anyone tell me if I might run into trouble attempting to title this vehicle in my own name after I bought this car? I haven't bought it yet, but what should I know here?
Oh, and another thing is, I ran the Carfax for this car. It does show that it was sold to the dealership that the seller bought it from. I know he's not lying about that.
Thanks.
Ask these questions at a tag place. They would know if there are any issues. For something like this you don't want to rely on advice on an internet forum.
Car is selling for $4000. Again, carfax shows a history of regular maintenance and one previous owner before it was sold to the dealership.
Why exactly should I take a giant leap away from this deal?
Thanks.
What the seller is doing is called title skipping and is illegal. Unless he is a car dealer, he can not just reassign a title without putting it in his name. He is trying to avoid paying tax, title and license fees on this car and is hoping to pass it on to you.
You need to talk to your DMV as was suggested if you are serious about this car. The prior owner should have taken title of it, and then he can legally sell it to you. In Texas, the application for title form is now required to be signed by the seller and the buyer to try and cut this practice out.
If everything you have stated is correct, This_Mine, and you decide to purchase the vehicle . . . then GO FOR IT.
Even though it is considered an "As Is" sale from a Private Party, the "As Is" applies to the condition / drivability of the vehicle NOT the registration / title requirements.
If in doubt, take all of the paperwork to the DMV with checkbook in hand to cover the registration fees prior to paying the seller.
Not legal to title skip. He is avoiding sales taxes by not registering the vehicle in his name. To pass the title he needs to have it in his name with a bill of sale to you.
Car is selling for $4000. Again, carfax shows a history of regular maintenance and one previous owner before it was sold to the dealership.
Why exactly should I take a giant leap away from this deal?
Thanks.
Because anytime the vehicle does not have a clear title from the seller, it is buyer beware.
For all you know, it could be a stolen vehicle.
Just a short lesson in dealing with vehicles and buyers when everything is not up front, and out in the open, "Those that will not listen, must feel".
You might want to think long and hard about those seven little words.
Bob.
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