Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm looking to purchase a newer used vehicle to replace our recently totaled van. Some of the options we are looking at are newer (2-3 years old) and more expensive. My guess is that many of these will still have a lien or lease and could even be underwater from depreciation. I will be paying cash.
I have never purchased a car from a private party that has had a lien/lease before. What is the process to ensure that I'm protected since they won't likely have the title on hand to sign over to me?
I'm looking to purchase a newer used vehicle to replace our recently totaled van. Some of the options we are looking at are newer (2-3 years old) and more expensive. My guess is that many of these will still have a lien or lease and could even be underwater from depreciation. I will be paying cash.
I have never purchased a car from a private party that has had a lien/lease before. What is the process to ensure that I'm protected since they won't likely have the title on hand to sign over to me?
Buying from a lease can be a pain in the arse. Buying with a lien from a bank is fine. Just make sure you document everything. Watch a youtube video on it.
Personally when I buy a used car I only buy from someone who has the title free and clear. Makes for a much easier transaction. Here is the cash...they sign over the title. Bye!
I'm looking to purchase a newer used vehicle to replace our recently totaled van. Some of the options we are looking at are newer (2-3 years old) and more expensive. My guess is that many of these will still have a lien or lease and could even be underwater from depreciation. I will be paying cash.
I have never purchased a car from a private party that has had a lien/lease before. What is the process to ensure that I'm protected since they won't likely have the title on hand to sign over to me?
If you find a vehicle that you like and it has a lien against it, payment will need to be made via certified funds to the lender, with any additional funds paid to the seller. It will take a bit of communication and all actions should be documented carefully, but it can be done.
And you're left hoping the lender actually sends the title to you, and not to the person who sold you the car. And if they do send it to the seller, you're hoping that the seller is an honest person and will sign/give the title to you should they receive it in the mail. There's a lot that can go wrong.
You can have the seller sign a bill of sale and get it notarized.
I sold a car that had a lien on it a couple of years ago. Then the title got lost when I mailed it to the buyer (made the mistake of mailing it via regular mail). Took me almost a month to get the guy a title. He was sweating bullets. When I got the replacement title back, I sent it FedEx just to be safe.
Thanks for confirming my suspicions that while it can be done, it could be difficult depending on the situation. No wonder why I see so few private party listings for newer / pricier cars. It seems like everything just about runs through a dealer these days through trade-ins or leases expiring.
I just called on a low mileage 2014 listed by a private party that is everything we want (color & options). Unfortunately, it's a lease (I'm assuming it's through American Honda) which seems that it may complicate things a bit.
A lease may actually be better. In some states, you have to go through the dealer in order to buy the leased car.
If it's financed, it's usually not with a local lender who has a branch office in town. It's usually through a manufacturer finance company, or some place like Ally that has no branches. If it's with a local lender, sometimes they can order the title for you before it's actually paid off, or you at least have a local contact for when the title comes in. For example, if it's financed with ABC Credit Union, you meet the seller there at the branch. Pay off his loan, and ensure that the banker will call YOU when the title comes in. Sometimes you can even have the seller sign a vehicle POA so that the banker can sign on the seller's behalf when the title comes in.
Tell the seller to call you when he can document that the lien is satisfied. Then have him go to the DMV with you.
Yes this.
I purchased a car with a lien on it,mthe seller had documents showing only $120 was owed on the registration and that the rest was paid off. I called the lien holder myself to verify there was nothing owed on it.
It was verified and it all worked out.
Just like in real estate, there are also vehicle purchasing "escrow" companies that will handle the transaction (for a fee) to ensure that any and all liens or financing is satisfied and a clean title is passed to you. Basically, they make sure that everything is paid properly and any outstanding obligation is taken care of. They will even check and pay off any parking tickets or judgement fines outstanding on that vehicle. They know what paperwork to get from the financing, leasing and/or lien holders. Anything left over is sent to the seller. You get the vehicle with a clean clear title. Some will also provide coverage in case some hidden obligation pops up that was missed. The decision to use them is really based on your comfort level of doing it yourself along with the added protection of not getting burnt by something hidden, as well as how much it will cost (often the seller picks up the tab).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
