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I am a first time car buyer and need some help on figuring out whether I am checking out a lemon or not.
Here is some info.
I am interested in buying this 2011 Subaru Outback Sport from a car dealership in New Jersey. The car has approximately 45K miles and being sold for $15900.
I live in North Carolina and am planning on driving up to get the car in a week or so.
I want to buy the car outright from the dealer, but the dealer says they will have to send the title to North Carolina with a lien release from the dealership.
I'm attaching a snip from the car fax -anything look overly suspicious that might make you stay away? The car was definitely sold at auction at least twice. Also,is there still an outstanding lien on it if the dealer needs to release it?
IMO, the only people who can answer your questions are the dealer and the Motor Vehicle Departments in the states where the vehicle will be sold and registered.
Title and registrations requirements are VERY state-specific. If you were asking about buying in California and titling in Montana, I have expereince there, but I have none in the states you are referring to.
Good luck.
there's nothing inherently wrong with buying a car from an out of state dealer ...
and, IMO, the CarFax report is totally worthless for your purposes.
Keep in mind that what you are buying with a "used" vehicle is the remaining useable economic service life of the vehicle.
That means that the condition of the car is the priority of your purchase unless you're simply buying it for a vanity reason.
You should have the car mechanically checked out by an independent third party, preferably at a shop that is knowledgeable about late model Subie's. You're not seeking their opinion as to whether or not to buy the car, what you are asking them for is a thorough pre-purchase inspection to advise you of the current condition of the car so that you can make an informed purchase decision before putting any money into a purchase.
If you are unable to have such an inspection performed before spending any money on the car, then it might be better to pass on the purchase. Once you've left the dealer lot with the car and head homeward, you're a long way away from obtaining service follow-up from that dealer. Don't rely upon any third-party warranty sold by the dealer to protect you, either. Typically, you will be buying the car on a "as-is, where-is" representation by the dealer on the sales documentation, no matter what a salesman tells you to get you to sign the purchase order.
PS: if you pay for the car purchase in full at the time of delivery, then the dealer has no "lien interest" in the car to release.
I'd want to be assured that the dealer does have a clear title or ownership path to the car before making such a long trip to purchase it because if they don't, it can be a hassle to clarify their ownership and the legal right to sell you the car; I'm not saying that there can be delays in this process, but especially for a first time car buyer you will have a better experience in a "clean" deal rather than the process of getting a clear title. While many of C-D posters are experienced in this whole process and have dealt with it successfully, it can be a difficult process to work through if there are any problems along the way.
IMO, better for you as a first time buyer with an all cash deal to buy a car with the simplest possible process to complete the deal and ownership; as posted above by others, you may find that buying a car locally will be an easier experience.
Is it also a 'red flag' that the car has been sold at two auctions in Ohio?
The dealership has a good reputation in the area (my uncle lives nearby and has test driven the car) but I'm still not sure why it's been on the lot so long except for red flags that I might be missing.
I was concerned also that the car salesman I'm working with mentioned a lien release despite me paying in full.
The salesman confused me because he said "The title has no lien on it - it's just in the dealership's name."
Is that typical?
Is it also a 'red flag' that the car has been sold at two auctions in Ohio?
No.
The dealership has a good reputation in the area (my uncle lives nearby and has test driven the car) but I'm still not sure why it's been on the lot so long except for red flags that I might be missing.
That's why I advised a pre-purchase inspection by a knowledgeable tech. Your uncle's test drive isn't the same thing at all.
I was concerned also that the car salesman I'm working with mentioned a lien release despite me paying in full. The salesman confused me because he said "The title has no lien on it - it's just in the dealership's name."
Is that typical?
That a salesman would confuse a clear title trail and a lien for a purchase process? nothing any salesman says at a car dealership has surprised me in almost 50 years of car dealings.
That salesman has one job to accomplish, and that is to get you to sign a sales purchase order. Anything that they can say to induce you to do so is what they can and will say. The only three things that count are the condition of the car, the purchase price, and what's printed on the sales order/contract you sign.
Thanks again for all your help.
In all candor, as has been mentioned above ... your first foray into buying a car may be better accomplished in your local marketplace. The car you are looking at is a pretty common item.
Thanks sunsprit, again. I did want to mention that I mistakenly left out that it was a Subaru IMPREZA Outback Sport. So it's a bit rarer than the Outback Sport. I will definitely do the pre-inspection procedure by an independent mechanic.
Actually, the Imprezza Outback Sport is not that common, only 21 show up on a nationwide Autotrader search, and the price on the one being looked at is $14,900 which is mid-pack for the vehicle compared to all the others. This one has less miles than most, and the price matches closely to Edmunds suggested retail for a dealer. Looks like a reasonable deal, but not a slam dunk deal that is too good to be true.
Having bought several vehicles over the internet from remote locations I suggest you get it inspected by an independent third party. Since you have a relative nearby, have them take it to a trusted mechanic or garage for this if possible. Additionally, you can clear the concerns over the history with a copy of the title. Any unusual issues should come up between Carfax and a copy of the title which will show flood damage, salvage issues, or who owned it previously. If it is only being passed between a couple dealers, the last registered owners name will still be on the title and you can see when the title was issued and if it matches the time frame from the Carfax dates. Looking at what you posted it looks like a three year lease or owner that trades on ~ 3 year cycle and they updated.
Do not send the money ahead, but offer a small deposit to hold the vehicle until you get there. Typically, if using funds from a bank (loan or funds from your account) you can get a check made to both parties and sent to the dealer. They cannot deposit without your signature after you approve of the vehicle at time of pick up. Safeguards both parties. This appears to be a legitimate, franchised dealer so they will be familiar with this process more than likely. You are not likely to be the first out of state buyer.
Most states will allow you to take the paperwork from the dealer to the DMV in your state to complete the title and registration process. Most states will require you to pay the appropriate taxes at that time, since the out of state dealers will not act as a collector for those fees up front.
Thank you both - this is very helpful information. I didn't realize that NJ dealers are required to include a warranty. That makes me feel a little better about their false advertisement of the Subaru as "pre-certified" - when in actuality it is only eligible for the certification, which you pay an additional $895 for to complete the contract with Subaru of America.
I will definitely have it inspected by an independent third party. I did already put a deposit on the car.
Beyond that, it sounds like I need to also get a copy of the title to ensure it's clear. I shouldn't expect to walk out of the lot, though, with the title in hand - correct? The dealer claims that even if I pay in full outright in cash, I still need to wait for them to completely the transfer from NJ DMV to NC DMV. Does that sound right?
Thank you all so much for being so helpful.
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