Purchase Question

[skratch16]

I'll be purchasing a '05 LGT Wagon Limited 5eat in the near future. My question pertains to the actual transaction. I'm buying it from a private party and the car still has a lien on it. I'll pay for the car with a cashiers check, but I'm not sure what to expect.

 

I would assume (I know, I know) that I'd make the check to the party I'm buying it from, they'd use the money to pay off the loan, get the title from the bank, then send it on to me.

 

Where am I wrong and how's this really going to shake out?

 

Thanks for your help...

[gf2020]

I would assume (I know, I know) that I'd make the check to the party I'm buying it from, they'd use the money to pay off the loan...

 

Do NOT depend on the seller to payoff the bank loan!

 

I have purchased 1 used car and sold 3 used cars in the past 8 months, 3 of them had loans involved.

 

This is how we structured the deal:

 

1. Buyer gave me a deposit of $500 to hold the car.

2. I got the payoff amount from the bank.

3. Buyer got a bank check for the exact amount of the payoff and the loan was paid off at the bank.

4. The bank releases the title and it is sent to the owner. (Here in MA this takes 5-10 days.)

5. The buyer gave me a bank check for the remaining balance due to me on the sale, I signed over the title and they took the car.

[laz]

Do NOT depend on the seller to payoff the bank loan!

 

I have purchased 1 used car and sold 3 used cars in the past 8 months, 3 of them had loans involved.

 

This is how we structured the deal:

 

1. Buyer gave me a deposit of $500 to hold the car.

2. I got the payoff amount from the bank.

3. Buyer got a bank check for the exact amount of the payoff and the loan was paid off at the bank.

4. The bank releases the title and it is sent to the owner. (Here in MA this takes 5-10 days.)

5. The buyer gave me a bank check for the remaining balance due to me on the sale, I signed over the title and they took the car.

 

Same thing, but as soon as the new owner had bank checks for both bank loan and balance I signed over the title and they just waited for the lien release. In NYC we get to hold the titles with a lien on it.

 

Always pay the bank directly, and give the owner the balance.

 

You also need a bill of sale.

 

X

[skratch16]

Thanks folks, great info!