Buying a Car that isnt Paid off

[zguy95135]

Whats the procedure for that like? The owner still owes a substantial amount on it to the bank, and since they technically still owe it how do you transfer the title? I heard from a few people outside of California that you have to pay the owner, then they have to pay the bank, and then you have to wait 6-10 weeks to get the title transferred to you... Has anyone in California had to deal with this before?

[Datsun350Z]

Contact the bank directly, have information for the current owner (name, account # if possible, vin#)

Ask them what the procedure is.

 

I would NEVER pay the person without having the title in my hand.

Write a check to the bank and have them mail you the title. Once that is in motion, pick up the car and pay the owner the difference he is owed (if the selling price is more than the loan).

 

Paying him to pay them seems like it's asking for trouble

[Bartman]

It depends on the bank, but I did it all in one day when I sold a car a while back. Just call the bank and see if both you and the seller can meet at the bank to complete the transaction. The buyer pays the payoff amount to the bank, the bank removes their lien, documents are signed, and your done. Of course if your buying the car for more than the payoff you pay the balance directly to the seller.

[antimanifesto09]

I had to go through this headache with my Toyota Tacoma I sold... I wanted to sell the car, had the buyer lined up and everything... In order to get the title in hand, I needed to pay the full amount left on the loan and wait for them to send it to me. The buyer was cool enough to front the money after we wrote a contract out, but it took forever (like 6-7 weeks) and he backed out. I actually sold it to another buyer for more money and had to pay off the first for the upfront money to get the title. So... it's a BIG headache.

 

If it's through a bank, I'm sure it'll be much easier since you can go to the bank and talk to someone in person. No such luck with the dealer financing.

[Pop N Wood]

I had to go through this headache with my Toyota Tacoma I sold... I wanted to sell the car, had the buyer lined up and everything... In order to get the title in hand, I needed to pay the full amount left on the loan and wait for them to send it to me. The buyer was cool enough to front the money after we wrote a contract out, but it took forever (like 6-7 weeks) and he backed out. I actually sold it to another buyer for more money and had to pay off the first for the upfront money to get the title. So... it's a BIG headache.

 

If it's through a bank, I'm sure it'll be much easier since you can go to the bank and talk to someone in person. No such luck with the dealer financing.

 

I was on the other end of such a transaction when I bought a used pick up. I basically gave the guy a check to mail to ford motor credit to pay off his truck. FoMoCo mailed him the title, and when he got it we met up a second time for him to sign it over to me.

 

We did notarize a bill of sale prior to my handing him the check. Risky, but it worked out for me. They guy was having a lot of trouble finding someone trusting enough to go along with such a deal.

 

And I will be amazed if the bank will give you the time of day about someone else's account. They should rightly only deal with the account holder.

[Kevin Shasteen]

You do need to do a bill of sale w/the current owners info specifically listed and the vehicle being sold specific info listed as well. In a separate clause you can ouline the amount owed by the bank, to which you will be paying.

 

You will need to do this twice, in other words you will have two separate contracts, one= to the bank to pay off their debt they are holding relative to the debt the owner of the car has not paid, and two=Bill of Sale contract between you and the current owner wishing to sell the vehicle but doesnt yet have the title.

 

Between you and the bank you will want their signatures and your own witnesses if you feel better with that; the bank should have their own Notary on hand to notarize the Confirmation of Sale to obtain title contract.

 

Do the same thing w/the current owner w/in the Bill of Sale, have it notarized and make sure you have your witnesses and his witnesses sign it in front of a Notary.

 

The reason you will need to do all of this twice is that you have two deals going on. The first one is between you and the owner whereby you want the car. The second one is between you and the bank whereby you want the title to car.

 

You can do this all throught the current owner or you can deal w/the owner and the bank. I would prefer dealing w/the owner regarding their equity and then dealing w/the bank regarding the remaining debt. That way the title gets sent to you not the current owner who could then cause you all kind've heck if they decide to back out of the deal.

 

Just make sure before you do all of this that the title is a good title and not a salvage title. Dont take the word of the owner.

 

Before you pay out anything to anyone you will need to get a copy of the front and back of the title from the bank. Dont go off what the current owner is holding. Get the copies from the bank.

 

Kevin,

Yea,Still an Inliner)

[antimanifesto09]

yeah, that's IF you're dealing with a bank and not the motor corporation who's office is in BFE, or wherever it is. Of course the bank where you originally got the loan will be much easier... I had pre qual financing from a bank in hand, so the motor company had to meet or beat it if they wanted the deal... guess I should've gone with the bank instead... oh well, live and learn.