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Seller has a lien. What’s standard protocol on releasing the car to the buy?
When I payoff the seller’s lien can I take possession of the car? It seems odd to me I’d pay off his lien and NOT take the car as how would I know he doesn’t simply run off with the funds?
The best thing to do is have the current owner pay off the car, take possession of the title, and sign it over to you.
Next best is going with the seller to the bank the loan is with and doing the transaction in the bank. It will still take time to get the title from the bank as it's typically not stored at a branch.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I would go with them into the bank and pay off their loan. Take the car but then hold the rest of the money until they give you the title, which will normally take 2-6 weeks if not held at the branch. You won't be able to legally drive it though, because insurance companies require you to be on the title to insure it. I would never buy a used car from a private party that has a lien, too many ways for the deal to go bad.
I'm guessing that if the owner had enough cash to pay of the car, they would have done so already in order to simplify the selling process.
The last time I sold a car with on lien on it to a private party was 20 years ago. In that case, the buyer paid the lien holder directly, gave me a certified check for the balance, and drove the car away. This of course requires some trust on both the buyer's and seller's part.
IMHO, the K.I.S.S. method has its advantages. If a seller can't produce and sign over a car's legal title to me at the time of sale, I'm not buying it. Up to them to make that possible. There are enough potential headaches buying a used car from a private party as it is. Unless the car is some rare, unique, or collector car, chances are there are other options out there.
Last edited by Parnassia; 04-17-2024 at 12:44 PM..
IMHO, the K.I.S.S. method has its advantages. If a seller can't produce and sign over a car's legal title to me at the time of sale, I'm not buying it. Up to them to make that possible. There are enough potential headaches buying a used car from a private party as it is. Unless the car is some rare, unique, or collector car, chances are there are other options out there.
There are WAY WAY too many cars for sale for me to even consider one that doesn't have a clean (and non-salvage) title in the owner's possession, that they can sign the back of it and I can take it the next day and get the title changed to my name.
OP, just move on and find one that's owned outright.
IMHO, the K.I.S.S. method has its advantages. If a seller can't produce and sign over a car's legal title to me at the time of sale, I'm not buying it. Up to them to make that possible. There are enough potential headaches buying a used car from a private party as it is. Unless the car is some rare, unique, or collector car, chances are there are other options out there.
I dunno, why not "real world useful"? I've not bought dozens and dozens of cars like some claim, but I"ve bought cars before, and when it was a used car I've only ever bought them outright, no liens or such. I provide cash, owner provides title signed on the back. I don't care what he had to do to get the title, he doesn't care what I had to do to get the cash.
Buy another car that has a clear title. Escrow is too much of a PITA for just any old car. If the owner is paying for the fees and it's something you can't just buy another one of easily though, maybe it's worth doing escrow on.
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