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Give her the money and make her promise to pay off the loan as soon as she can and then she can send you the title after she pays off the loan and gets the title cleared. You should probably just leave the vehicle with her until she is able to get the title cleared for you. Just give her the money and go back later to get the car and clear title.
^^^This is the worst scenario ever. Not only can you lose your money, but you'd probably never see the car again.
I would never buy a car on CL, there are too many bad ones out there. DYK there are over a 100,000 flood cars out there for sale plus other totally salvaged cars that have been re-built and re-titled.
Buy a local car with a history you can check and have it inspected by a reliable mechanic.
It's not THAT uncommon for someone to be selling a vehicle with a lien on it, nor is it uncommon for a vehicle to be registered in another state (which, if the seller is active duty military, is legit).
It's been a few years since I owned a vehicle in CA that had a note on it, but IIRC, the seller won't have the title. The bank will. It makes things complicated, but not impossible. The best way to handle this REGARDLESS of who physically has the title is for both you and the seller to go into a branch of the bank and work it out with them. You'll need the bank's sign-off on the title anyway, so it's best to be there in person and make sure that happens. What will probably end up happening is that you pay the bank the remainder of the note, then pay the owner the balance.
There is a chance the bank won't have the title at the location you conduct the transaction at, though. This is where it gets tricky. I'd have the seller contact their bank to see if it's possible to get the title sent to whatever branch you'll be working with so everything happens in one quick and smooth transaction. If that's not possible, ask the bank how they handle this situation. It's not like they haven't done this before; they'll know what to do.
And as for the vehicle being registered in another state, so long as that registration is current, it shouldn't be a a problem.
As for dealing with your bank, I recommend getting in touch with them and seeing how they handle situations like these. Each one is a little different, and some can be more of a hassle the others. With used vehicles, my credit union (Navy Federal) basically gives me a blank check good for up to whatever amount I ask for, then I go shopping. When the check clears the seller's financial institution, my credit union then knows all the pertinent info and the loan is started. Makes buying used vehicles real easy.
Mike
Last edited by whiteboyslo; 01-30-2014 at 06:45 AM..
Give her the money and make her promise to pay off the loan as soon as she can and then she can send you the title after she pays off the loan and gets the title cleared. You should probably just leave the vehicle with her until she is able to get the title cleared for you. Just give her the money and go back later to get the car and clear title.
It's not THAT uncommon for someone to be selling a vehicle with a lien on it, nor is it uncommon for a vehicle to be registered in another state (which, if the seller is active duty military, is legit).
It's been a few years since I owned a vehicle in CA that had a note on it, but IIRC, the seller won't have the title. The bank will. It makes things complicated, but not impossible. The best way to handle this REGARDLESS of who physically has the title is for both you and the seller to go into a branch of the bank and work it out with them. You'll need the bank's sign-off on the title anyway, so it's best to be there in person and make sure that happens. What will probably end up happening is that you pay the bank the remainder of the note, then pay the owner the balance.
There is a chance the bank won't have the title at the location you conduct the transaction at, though. This is where it gets tricky. I'd have the seller contact their bank to see if it's possible to get the title sent to whatever branch you'll be working with so everything happens in one quick and smooth transaction. If that's not possible, ask the bank how they handle this situation. It's not like they haven't done this before; they'll know what to do.
And as for the vehicle being registered in another state, so long as that registration is current, it shouldn't be a a problem.
As for dealing with your bank, I recommend getting in touch with them and seeing how they handle situations like these. Each one is a little different, and some can be more of a hassle the others. With used vehicles, my credit union (Navy Federal) basically gives me a blank check good for up to whatever amount I ask for, then I go shopping. When the check clears the seller's financial institution, my credit union then knows all the pertinent info and the loan is started. Makes buying used vehicles real easy.
Mike
I do agree with you on this.. I am actually in same boat, I just moved to South Carolina from Texas... My loan is with a Credit Union in Texas and is still registered there as well.
Having bought several cars in the last few years on CA titles ....
The titles are physically issued to the owner of the vehicle. The liens are noted on the face of the title, but the lienholders do not get the title. The lienholders do not own the vehicle.
A transfer of the title to a new buyer requires the sign off release by the lienholders and the seller's signature.
That's it.
Other states may do this differently, but CA has been issuing titles to the owners for as long as I've been doing car business in that state ... since the early 1960's.
Give her the money and make her promise to pay off the loan as soon as she can and then she can send you the title after she pays off the loan and gets the title cleared. You should probably just leave the vehicle with her until she is able to get the title cleared for you. Just give her the money and go back later to get the car and clear title.
No way! Pay it off you may never see the seller or car again!
Certified check for the payoff amount only sent to finance company, take the car. Upon receipt of the title (lien free) then pay the balance to the seller and get the title signed over.
OP, should have mentioned yesterday..
Funny enough, I just called my DMV about an hr before I saw your post. I have very similar situation - want to sell a vehicle but title is still at credit union, though loan is paid for as of month by now.
What I am trying to tell you, is your best bet is to call your local DMV. Maybe after some hold, gal will tell you everything. Like in my case, she told me to wait till title shows in mail. So I am stuck for the next few weeks. But we looked into your situation when we were looking for a vehicle for my son...
Call DMV. Don't guess or rely on others guesses.
Wow, why all the complicated, the end is near answers?
All you have to do is go to the bank/credit union of your choice with the seller. The loan officer at your bank will contact the bank holding the title and lien against the vehicle regarding the purchase/transfer of the vehicle to you.
The bank/loan officer is acting as agent for the transfer and bears the responsibility of making sure it is done correctly and legaly.
As for the remaining loan amount and the outstanding balance, that is something you all have to agree upon- either you will agree to pay the full amount to satisfy her existing loan, or she will have to pay the difference in order for the transfer to occur. Contrary to what sunspirit posted(at least in Alaska), the bank does own the vehicle by virtue of a lein, and possesses the title until the loan is satisfied. The loan officer will also take care of the registration requirements at the time of transfer. You will receive title to the vehicle once the loan is satisfied in full and you will be registered as the "owner".
If you go through a lending institution to purchase the vehicle it will be handled correctly and legaly. Also, with the seller being military, I guarantee the banks deal with exactly this on a regular basis.
Even if you have the cash to buy it outright and do nont need to finance it, you may still arrange for financing with your cash as collateral and turn right around pay off the loan in one fell swoop, and you will have the protection of the bank acting as purchasing agent for you.
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