Purchase car with lien NY/NJ

[laz]

OK here is the deal, I have someone interested inmy car, and we agreed that they would make two checks, one for Cahse with the car's payoff, and one for me with the balance. I would sign the title over to them, and make a bill of sale along with the signed title. I have written a letter as per Cahse's instructions to forward teh lien release to them and a copy for my records.

 

The person went to get insurance, and state farm told them that they should not do that, but buy the car with a clean title. So he is asking me to pay the car first, get a clean title, and then sell it to him. But of course I can not do that until the car is sold and they pay.

 

So I know the process, but I am posting so that he can get another perspective from you guys to the legality of this process and hopefully we can make this transaction happen.

 

Cliff notes. Interested party makes two checks, one to chase, one to me. I signed title over with bill of sale. They take car. 5 days later they get lien release, and they can register the car in NJ no problem.

 

Am I missing anything?

 

Thanks guys,

 

X

[JBLU24]

cant u just go to a chase branch with him, have him give a certified/cashiers check for the payoff amount, and have chase give him a lien release on the spot?

[Rommel]

Here in CA, if you buy an new car your insurance company covers your newly purchased vehicle for 15 days. If his problem is just insurance coverage that should take care of it.

[laz]

I m not sure if in NY Chase will issue a lien release on the spot.

 

I believe his issue is thinking that since my car has a lease, by paying the carr he is paying it for me, and I will keep it.

 

I explained that once I sign over the title, it is his.

 

But the insurance (state farm) advised them not to do it unless the lien was off the title. But how am I supposed to get a lien release without them paying off the bank? So now they want me to pay off the car first, get a title and then sell it to them with a clean title. Which does not make sense to me, nor does it make sense how an insurance company can advise that.

 

Sorry but I am a little frustrated, since I have done this process before without any issues, or questions on the legality of the process. It is not like I am saying "you can't take the car until the lien release comes through". they wil be able to take the car as soon as everything is paid off, which should be right away, they just can't register it until the lien release is issued, which according to Chase is five days.

 

Oh well, ,maybe my car does not want to go. Just want to get some other opinions so that he can read them from a trusted community like legacygt.com.

 

I also have advise him to speak to the bank directly, or that we can go to the bank so that they can get a clear answer. I guess my beef is with the insurance company giving out such poor advise.

 

X

[laz]

Well I think I understand their problem a little beter. It appears that they tried to get insurance on a car that they do not own yet, so of course the insurance company said no, that it has to be a clean title. This is where the lien release comes in. They have to wait to have that and then they can insure it and register it.

 

I guess they wanted to insure it first, and take it with them, but that is not going to work out.

 

Thanks,

 

X

[NutBucket]

So what's next on the automotive horizon?

[laz]

Not sure yet since the person has not made a decision yet, but we'll see what happens in the next couple of days. I may have some other buyers lined up, but until I sell it I can not get anything else.

 

If anything else, I may lease a auto 2.5i Limited.

 

X

[gianspi]

Well first off you can insure any car, regardless of who owns it. I once called my insurance company and asks for a quote, and I received an insurance card in the mail. The rep thought I was insuring it.

 

Secondly, you can request a certain Chase branch to have the title on hand. It will take a week or so to get there, then go in with a bank check and swap the check for the title.

 

Lastly, here is how I bought my car out of state.

 

1) I went to Bank of America in PA and ordered a certified check while the seller was with me. (So he knows it is not a phony)

 

2) I bought a Bill of Sale contract offline (a long and less-loophole one) and had him sign it, with an addendum that stats the seller will pay off the lein and mail me the title within 2 weeks.

 

3) On my drive back to RI, I called the insurance company and gave them the VIN number. The car was insured instantly.

 

3) The seller paid off the lein and fedex'd me the title.

 

4) Currently enjoying the car!

[ShadowImg]

I don't know if Chase does this, but on a loan through BoA (in Missouri, at least) if you want to sell the car that still has a lein, they'll do an escrow of the whole transaction for you.