Looking to buy a used car. Current “owner” owes $6000 to his bank. How would we go about paying off his bank note and securing the title? If we(I) pay off the note, the title would still be sent to the current “owner” via his credit union, correct? I don’t want to pay off this guy’s car and then not get the car...
Never done a used car purchase in this scenario. Looking for suggestions on how to not get hosed!

Thanks,
CT

Go to your bank and ask them how to do it in your state. Too many variables based on state laws.

I'm an attorney, but more than likely am not licensed in your state, so don't take this as legal advice. Go to his bank with him and close it there with one of their bankers, just like buying a house. You give money to his bank and get a Bill of Sale from him. Bank will release the Lien on the car or if you are in a state where the bank has the title, they will send it to you. Do not do anything that doesn't involve his bank.

Do you know the person? If not I would be very leery. They need to pay it off and get a clear title.
Outside of that I agree with mcrimm.
Be very careful.

I do not know him. And I’m VERY leery. This is why I came here, looking for advice. Thinking of calling HIS credit union to see what their M.O. is for this situation. Certainly not trying to get burned in this deal. First time buying a used car under this scenario.

Thanks,
CT

I wouldn't touch that deal with a 10 foot pole. I know of two coworkers over the years that lost their money over this type of deal with cars. No clean title walk away.

quote:

Originally posted by Jelly:
I wouldn't touch that deal with a 10 foot pole. I know of two coworkers over the years that lost their money over this type of deal with cars. No clean title walk away.

And that is why you contact his C.U. to see how it can be done safely .

Both parties need to go to the lender's office together.

The buyer pays off the loan, the lender issues a discharge of lien, and the seller signs off on the title. The buyer can then go to the DMV and complete the title transfer.

I've done it this way several times and never had an issue.

I agree with 64Dodge. There has to be a legal and safe way to do this because a lot of people have liens on their titles. Just don't meet him on a street corner and hand him the check. I've never had a lien on one of my vehicles but most people do and I've certainly bought cars from people who had a lien.

quote:

Originally posted by Scuba Steve Sig:
I'm an attorney, but more than likely am not licensed in your state, so don't take this as legal advice. Go to his bank with him and close it there with one of their bankers, just like buying a house. You give money to his bank and get a Bill of Sale from him. Bank will release the Lien on the car or if you are in a state where the bank has the title, they will send it to you. Do not do anything that doesn't involve his bank.

^^
This works fine. You meet at the bank, pay him and the bank, get a notarized bill of sale, talk to the banker to be sure the title comes to you and drive away from the bank with car when you pay.
Additional steps you might do are do a search for his name and phone number. Look at tax records for his home address to see if taxes are paid and anything else.
Not perfect but should give you an idea of who you're dealing with.
If you've been to his house and met him does he seem straight up or give you the creeps?

I've never done a deal like this, but every title I do have has a section for the "owner" and any lien holders to sign off. If the credit union holds the physical paper title to the vehicle, you should be able to pay for the car and have the titled owner and lien holders sign off the title and give it to you. You then transfer it through the DMV like any other title transfer.

quote:

Originally posted by 64dodge:
Both parties need to go to the lender's office together.

The buyer pays off the loan, the lender issues a discharge of lien, and the seller signs off on the title. The buyer can then go to the DMV and complete the title transfer.

I've done it this way several times and never had an issue.

this

under no circumstance do you give the guy the money without getting the title right then and there...

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The credit union with the lien is the key. I've bought one in this scenario. Met the seller at his credit union. Took all of 15 minutes. Also gives the seller piece of mind if you are paying with cash that the money is real.

I’ve gone to the bank with the seller multiple times. No problems.

Called and talked to a rep from HIS credit union. They made me feel confident in the process. If the car passes my second inspection, I’ll meet him at his credit union, use their notary and feel comfortable with the process. Thanks for the ideas.