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This is a tri-state mess ! I'm a current PA resident who wants to buy a used car from the current owner in NY and then move to MD.
The car:
1) It was last registered in Kansas to the current owner - and then he got to NY state and never registered. I think the current owner said that it has been a year since the registration has expired.
2) It has some outstanding loan or lien on its title currently. The owner said that when I buy the vehicle from him, he will use the money to pay the loan off.
This is my first time buying a car - and this stuff sounds pretty complicated to me. I'd really appreciate any help about how I should go about buying this car and getting it registered. Which state should I get it registered in ? Is it ok if the owner pays of the loan after he hands the title over to me?
Thanks a ton !!
If you have not already paid for this car, walk away. This is almost certainly not going to end well for you!
First of all, he may very well not pay off the loan on that car - and that means you're stuck with a car you absolutely cannot do anything with. If the registration expired a year or more ago, this guy is probably the exact kind of guy that would just spend the money and leave you hanging.
Even if he does pay off the loan, it's going to be several weeks - at best - before you can get the lien release card and become the fully legal owner of the car.
This is going to be a huge hassle, at best. If you haven't already bought the car, don't buy it!
I had a similar situation in Michigan, where I bought a car, that the owners intended to pay off when I paid them for the car. I wound up phoning the lender, who confirmed that it was paid off, but it would take them several weeks to process it and mail me a clearance. So I phoned a local car dealer and asked him how they overcome problems like that. He said just turn the title over and write somebody's name in the line that says "released from lein". I did, and the DMV accepted it, no questions asked. Notarization is not required, and they can't possibly know the signatrures of all the thousands of people working at finance companies that have the authority to release a lein. Turned out to be a great car, Ive had it for three years.
I had a similar situation in Michigan, where I bought a car, that the owners intended to pay off when I paid them for the car. I wound up phoning the lender, who confirmed that it was paid off, but it would take them several weeks to process it and mail me a clearance. So I phoned a local car dealer and asked him how they overcome problems like that. He said just turn the title over and write somebody's name in the line that says "released from lein". I did, and the DMV accepted it, no questions asked. Notarization is not required, and they can't possibly know the signatrures of all the thousands of people working at finance companies that have the authority to release a lein. Turned out to be a great car, Ive had it for three years.
Most states will not allow anything like that. They'll require a notarized card from a bank stating that the lien has been released.
I had a similar situation in Michigan, where I bought a car, that the owners intended to pay off when I paid them for the car. I wound up phoning the lender, who confirmed that it was paid off, but it would take them several weeks to process it and mail me a clearance. So I phoned a local car dealer and asked him how they overcome problems like that. He said just turn the title over and write somebody's name in the line that says "released from lein". I did, and the DMV accepted it, no questions asked. Notarization is not required, and they can't possibly know the signatrures of all the thousands of people working at finance companies that have the authority to release a lein. Turned out to be a great car, Ive had it for three years.
I wouldn't want to be part of forging anything on a title, which is what was done here. While the DMV may have accepted the paperwork for the title application at face value at the counter, there's all the behind the scenes work that happens for the clear title to be issued. For example, if the UCC filing hadn't been released by the time the paperwork went through, which is part of the process when the loan is paid off, this would have been caught and the DMV in any state would have been ticked off. A lot of lenders are pretty slow about doing this, just like issuing the letter that the note has been paid off.
My son was in a similar situation. He lived in Oregon, car was in Washington, owner moved back to North Carolina and lien holder was in Texas. I was worried about him sending money to the owner, so we had the owner contact the lien holder who was willing to accept the full payment and would forward the amount over the loan and title to the owner. My son showed, a certified check made out to the lien holder, to the owner's father (who was holding the car in Washington), they both mailed the check and the father gave a bill of sale for the car to my son (I think the son had signed it earlier or father had power of attorney). About three weeks later, he received the title and licensed the car. It worked well since all parties were honest and willing to work out something to protect all parties' interests.
It seems like a complex issue that may swing my way if the other guy is willing to work it out. The car in question is an 07 eclipse with 22k miles on it.
I also found an 06 eclipse - which is a dealer car with 42k miles on it - and $500 cheaper, but with no hassles.
What would be your advice ? Go through the risk / hassles of the 1st deal or just settle in for the second ?
Thank you ALL...who replied. I really appreciate it - it definitely has made me a more informed buyer !
The car with lower mileage does not *have* to be in better condition - that's the way it usually works, but not always.
If you do this the way Sunsprit suggested, you don't have any real additional risk on the non-dealer car. You can probably talk the first car's current owner down some on price.
Just make sure you get an unencumbered title out of this.
Also consider how much leg work you want to do yourself. If you need a ride, right now, the dealer option is probably better.
How did he get a New York Title if it was never registered in New York? Any state I have lived in did not give a title until title transfer and that included registration. Hence the definition....registration.
How did he get a New York Title if it was never registered in New York? Any state I have lived in did not give a title until title transfer and that included registration. Hence the definition....registration.
On a tachnicality - I think. KS doesnt give you a title if you have a lien. But he needed to get the title to get the car registered so the tile landed up at the NY DMV. NY gives you the title even if you have a lien on the car - so he just went and asked for it.
This car is about 300 miles from where I am - and I have currently no vehicle. Since I am getting other cars around the same range - I am now really inclined to walk away from this because I don't think I have the time/money to keep renting and driving to NY until this thing sorts out. Normally, I would love this sort of a challenge - but getting out of school and starting my first job, shifting to a new place and buying my first car within a month is tough at best. I don';t want to add to the list - and though it makes me feel pathetic - I think I will ring the guy and call the deal off today
On another note - the 06 eclipse - which is a dealer car - should I get it inspected by an independent mechanic ? The car still has a remainder of the factor warranty - about a year - plus I think the dealer hands out a 3 month / 3000 mile warranty with any sale.
Finally - I was looking for a manual, sporty yet reliable (my daily commute = 60 miles roundtrip) car within 10 /12k since I want to get a BMW M3 in 4/5 years. I am willing to be a little flexible on the budget if I get a car still in warranty. I looked at the WRX, eclipse. Any other suggestions or comments about the choice?
Thanks !
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