I'm buying another used vehicle by private owner but car is still not pay off by owner. Now a days, you can't really trust people that if you give them the money they will pay off their loan and send us the title.

What shall I do in this situation? Should I trust this person and give them the money and assume that they will send the title or will I get jipped?

Should we both go to the DMV and make sure everything will be legit?

 

Call the bank that have the lien and ask them for a pay off quote. They should be able to assist you on this transaction very common in dealers. Be sure to make two checks, one to pay off the lien and other for the owner if not upside down. INVOLVE THE LIEN HOLDER ON THIS! Good luck

 

+1 go to the bank with the lein and inform them of the transaction

 

thanks you guys..anything else I should know about??

 

why aren't you writing your check out to the finance company? the seller should only be getting the balance after payoff if the agreed price is above what is owed.

 

If it's a somewhat local sale, go to sellers bank with him/her or they go to you at a local branch your way. Paperwork, loan pay-off, transfer of ownership, etc will be done there. Then bank releases lien (they own it not the private seller). Did that with buying my daughters car that had a lien.

 

You have the answers to your questions, no one can give you better advice than what these members have posted....
Gary

 

yes i agree make sure no matter what that you invole the bank of the other party so you dont get screwed. and if the price is above what he owes on the car then pay him seperatly

 

+1 get bank involved. If the seller is legit, there shouldn't be any resistance.

 

if its legit... theyll take you down to their bank.. pay off the lienholder... difference will go to seller if agreed price is higher than payoff. if agreed price is less than payoff, seller should pay difference in cash. The lien holder may be reluctant to give you the title(lien release if its a paperless title) immediately if the loan is paid off with a check. I would pay it in cash if possible so that way you can get the title or Lien Release (DMV form 227).

 

+1 bank involved = no way to bail.

 

Don't just give him money like that. Go to the bank with him and tell them your buying the car and pay and the title will be transferred on your name.

 

I learned this the hard way, but if you're also financing from a bank, it could take WEEKS for your title to come. My best advice for someone is try to have the seller get the title in hand before the transaction is made, so that you get the title with your transaction. I dunno if it's just Massachusetts law, but it took me almost a month between making the transaction with the seller, and actually getting to register the car with the title. After this frustrating experience, ANY pre-owned car I buy is going to be from someone who has the title in hand.

 

+1 get bank involved!

 

+1 here I'm in mass too.

Bought a used car not completely paid off. Sent the check to the bank, took weeks to get the title. In the meantime car sat in my driveway until i could register and insure it in my name.