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Hi,
I'm trying to buy a used car on craigslist. I encounter that most cars have loan balances. I don't want to run around with cash or a cashier's check to pay for the loan part. I would pay the difference to the sales price in cash. Is it possible to go to the seller's bank and pay off the loan with a credit card and get the title? - Thanks.
Status:
"I don't understand. But I don't care, so it works out."
(set 11 days ago)
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Maybe I'm misunderstanding you. No, you can't go to a bank and pay off the owner's balance and receive title to the car. Banks don't have the title, the DMV has the title, and it has to be signed over to you by the owner of the car. If you go into the bank and pay the balance owed on the loan, the title is now free and clear in the original owner's name.
And it's not yours. And you're screwed out of however much you just paid on this owner's car.
Maybe I'm misunderstanding you. No, you can't go to a bank and pay off the owner's balance and receive title to the car. Banks don't have the title, the DMV has the title, and it has to be signed over to you by the owner of the car. If you go into the bank and pay the balance owed on the loan, the title is now free and clear in the original owner's name.
And it's not yours. And you're screwed out of however much you just paid on this owner's car.
Thanks. It appears I am clueless. Yes, I had no idea. That's why it's so awesome to ask this forum first. Now I'm very reluctant to pursue this.
Status:
"I don't understand. But I don't care, so it works out."
(set 11 days ago)
35,637 posts, read 17,994,810 times
Reputation: 50679
Quote:
Originally Posted by Potential_Landlord
Thanks. It appears I am clueless. Yes, I had no idea. That's why it's so awesome to ask this forum first. Now I'm very reluctant to pursue this.
Yeah, don't pursue it. Buy from someone who has the title free and clear, and when you buy the car, you meet up at the DMV and sit at the desk and the owner gives you the title when you pay for the car by cashier's check.
Of course, if you buy the car from a reputable car dealership or used car lot, you don't have to meet at the DMV. For private purchase, you do.
Maybe I'm misunderstanding you. No, you can't go to a bank and pay off the owner's balance and receive title to the car. Banks don't have the title, the DMV has the title, and it has to be signed over to you by the owner of the car. If you go into the bank and pay the balance owed on the loan, the title is now free and clear in the original owner's name.
And it's not yours. And you're screwed out of however much you just paid on this owner's car.
Strange Chase bank had the title in hand when I paid off my father's truck when he died. I paid off the loan and they handed me the title. When I paid off my Honda, Honda's credit company sent me the title not the DMV
Who holds the car title during a loan?
Most lenders will hold the title of the vehicle for the entire duration of the car loan. After the loan is paid off, the lender removes itself from the title and sends a copy of the document to the owner. While receiving a copy of the title is one way to be sure that a car loan is paid off, another is to review your credit report and see if the car loan shows as having been paid in full.
Yeah, don't pursue it. Buy from someone who has the title free and clear, and when you buy the car, you meet up at the DMV and sit at the desk and the owner gives you the title when you pay for the car by cashier's check.
Of course, if you buy the car from a reputable car dealership or used car lot, you don't have to meet at the DMV. For private purchase, you do.
This is also incorrect. Maybe you don't actually understand this as well as you think you do
I don't want to run around with cash or a cashier's check to pay for the loan part.
Get over it.
As much as anything that filters out the frauds too.
Quote:
Is it possible to go to the seller's bank and pay off the loan with a credit card and get the title?
If their lender will accept that. I wouldn't.
Certified funds just like tenants are expected to have before moving in.
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