Buying a used car off Craigslist?

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Greetings. I have been shopping for a used car and found an '08 model on Craigslist that I really like. The price is $24000. I can pay cash for the car,
or I write a check off our HELOC. What concerns me is the owner has the car financed through Chrysler Financial and payoff is about what he's asking for the car. Obviously I don't want to just give him 24k and hope he pays the car off and hands over the title when he gets it form Chrysler Financial. Any suggestions on a foolproof way for me to handle the financial end of the transaction without getting burned? Thanks!

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I sold a car that had a lien on it. This is what I did, and what Lexus financial services told me to do.

1. Sign a bill... (more)

louieeG (Apr. 28, 2010 @ 6:20p) |

Niceeeeeeee.


EDIT: Awww.. someone beat me to it.

Sunderware (Apr. 28, 2010 @ 6:46p) |

And if Seller takes off to the high hills with the payment?
7. Bank repos car out of buyers parking lot.

I like the idea w... (more)

forbin4040 (Apr. 28, 2010 @ 7:09p) |

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

Yes, give me the money. I'll take care of everything.

No give it to me. I'll make sure you get your car. For real.

please don't do anything wise like call chrysler financial and ask them what to do

doesn't sound like he owns much of this car

have him give kick in $2000 --- then deal with the lien holder --- ask them directly how to handle this

I am sure they would prefer the $24k over the POS car

tripleB said: No give it to me. I'll make sure you get your car. For real.

You can trust me, I have financial experience. Check out my references: My References

Find out the name on the Title and call them.

Hmm, okay, I ask a serious question and all I get are smart ass responses. I did call Chrysler financial and they suggested I send the payoff with instructions to mail the title to me. The title is still going to come in the buyer's name and I will have to get him to sign it over to me. Obviously I was not comfortable with that solution since I still have to rely on the seller to sign the title over. I'm asking for a foolproof solution here, not a bunch of smart ass comments.

needahotdeal said: Hmm, okay, I ask a serious question and all I get are smart ass responses. I did call Chrysler financial and they suggested I send the payoff with instructions to mail the title to me. The title is still going to come in the buyer's name and I will have to get him to sign it over to me. Obviously I was not comfortable with that solution since I still have to rely on the seller to sign the title over. I'm asking for a foolproof solution here, not a bunch of smart ass comments.

Sounds like you answered your own question! Good Job.

needahotdeal said: ... I'm asking for a foolproof solution here, not a bunch of smart ass comments.

holy smokes ... it's Sunday

most places only have India customer service available

cut our overtime staff a break

If I knew where to go, or who to ask I would do that. It seems like situations like this would be common, I've just never tried to buy a used car from a seller that did not have the title. Should I just walk away from the deal? The car is exactly what I want, priced several thousand below BB, I don't have to pay sales tax or dealer fees, it's one owner and appears in good condition. I was planning to have an inspection done as well.

needahotdeal said: If I knew where to go, or who to ask I would do that. It seems like situations like this would be common, I've just never tried to buy a used car from a seller that did not have the title. Should I just walk away from the deal? The car is exactly what I want, priced several thousand below BB, I don't have to pay sales tax or dealer fees, it's one owner and appears in good condition. I was planning to have an inspection done as well.

then don't pay cash

get another lien holder involved on your end (you can pay that off later)

then you got old lien holder dealing with new lien holder

sorry, I got to go now --- got Slumdog Millionaire waiting in the que

germanpope said: doesn't sound like he owns much of this car

have him give kick in $2000 --- then deal with the lien holder --- ask them directly how to handle this

I am sure they would prefer the $24k over the POS car


1. What makes you think it's a POS car?
2. Why do you think they would want the $24k, and lose the interest they are collecting on that?

germanpope said:
then don't pay cash

get another lien holder involved on your end (you can pay that off later)

then you got old lien holder dealing with new lien holder



Thanks

needahotdeal said: germanpope said: doesn't sound like he owns much of this car

have him give kick in $2000 --- then deal with the lien holder --- ask them directly how to handle this

I am sure they would prefer the $24k over the POS car


1. What makes you think it's a POS car?
2. Why do you think they would want the $24, and lose the interest they are collecting on that?


1. ok, maybe it is ok ... but $24k for a two (maybe 3) year old chrysler? ... please
2. because they wrote the loan in 07/08 --- I am sure they would be happy to have it off their books

needahotdeal said: germanpope said: doesn't sound like he owns much of this car

have him give kick in $2000 --- then deal with the lien holder --- ask them directly how to handle this

I am sure they would prefer the $24k over the POS car


1. What makes you think it's a POS car?
2. Why do you think they would want the $24k, and lose the interest they are collecting on that?


because if you don't pay for the car, it's possible nobody will.

Please post a picture of the car (and your wife too)

I am probably going to get a big red rating for this, but honestly I don't see what the difference is between buying a car on CL with a lien on it, vs just buying a car on CL. When you buy a car on CL with a lien on it, it is the same as any other car, the 2 parties meet and the seller signs the title (that small document) over to the buyer. At that point all liens become the responsibility of the buyer. Therefore you are now responsible for the $24K, so you will only be paying the seller a nominal amt OVER the $24K lien at whatever you think the car is worth. I would call that morning of the deal to determine the actual debt owed on the car and use that amt to bargain with the seller.

What you would not want to do, is to give the seller $24K and take title without proof that he applied that $24K to the lien.

Assuming you are able to make a deal with the seller for a nominal amt over the $24K lien, I would then contact GMAC financing and try THEN to negotiate the payoff down, personally. But not until after the sale.

ajkghemee said: needahotdeal said: germanpope said: doesn't sound like he owns much of this car

have him give kick in $2000 --- then deal with the lien holder --- ask them directly how to handle this

I am sure they would prefer the $24k over the POS car


1. What makes you think it's a POS car?
2. Why do you think they would want the $24k, and lose the interest they are collecting on that?


because if you don't pay for the car, it's possible nobody will.


Maybe I'm missing something here. Don't finance companies make money off financing things? If nothing is financed, how do they actually make money?

needahotdeal said: ajkghemee said: needahotdeal said: germanpope said: doesn't sound like he owns much of this car

have him give kick in $2000 --- then deal with the lien holder --- ask them directly how to handle this

I am sure they would prefer the $24k over the POS car


1. What makes you think it's a POS car?
2. Why do you think they would want the $24k, and lose the interest they are collecting on that?


because if you don't pay for the car, it's possible nobody will.


Maybe I'm missing something here. Don't finance companies make money off financing things? If nothing is financed, how do they actually make money?


Look, If the guy you are buying the car from can't make the payments, they repo the car. Then they have to pay the person who repo'd the car, send it to auction and will probably end up with less than half of what the current pay off is. Get a notarized bill of sale, send the payoff amount directly to Chrysler Financial and enjoy your new car.

When I got my car off CL I've asked the seller to pay off the remaining amount of the loan and obtain the title before buying the car off him. My car only cost 1/3 of what you're about to spend, so I'm not sure how willing (or able) the seller will be to pay off 24k loan.

Hey needahotdeal,
Just out of curiosity, what's the KBB private seller value on it?

flyiguy said: Hey needahotdeal,
Just out of curiosity, what's the KBB private seller value on it?


In good condtion KBB Private Party is about $28,880. It might be a little more because I'm not 100% sure I've checked all the equipment it has. It's
a 2008 Jeep Commander, Limited 4x4, Hemi, with 28k miles. Blackbook, clean is $25,425.

The Jeep is in great shape, with a few minor scratches. I have no reason to believe the seller is not current on the loan. Unless he's really trying to pull one over on me, he's a high school basketball coach. He says the Jeep is not his daily driver. I'm assuming he's just trying to sell it for payoff to get out from under the loan.

Write up a bill of sale, mail the payment with a letter to Chrylser (like they told you). Once you get the title, just sign his name - you have the bill of sale and DMV is not going to verify signatures.

Well good luck, I wish I had something to add other then it sounds like a good deal for both of you if this is the car you want. FYI, there are alot of these coming off of lease right now (sister just turned hers in), however I really would want a previous lease. FYI, Chrysler Financial's CS people are terrible make sure you get the persons name and ID as soon as you start talking with them. Also, I would make sure he's the original owner and see some maintence/oil change records to prove that.

buy a honda

visit carmax?

I bought a slightly used car on Craig's list where the current owner had a loan on it. There are two options for you:

1. Have the current owner payoff the loan and obtain title to the vehicle outright in their name. After they do this, then you buy the car from them, getting them to turn over the pink slip to you.

-OR-

2. You and the current owner go into a Chrysler Financial office TOGETHER and transact the deal there. The current owner and the Chrysler Financial sign over the title to you. You give Chrysler Financial a check and they will settle with the current owner.

What ever option you choose, I suggest that you write up a Bill Of Sale for the car, that has all the details written down.

needahotdeal said: In good condtion KBB Private Party is about $28,880. It might be a little more because I'm not 100% sure I've checked all the equipment it has. It's
a 2008 Jeep Commander, Limited 4x4, Hemi, with 28k miles. Blackbook, clean is $25,425
Is Blackbook similar to KBB Trade-In Value?

needahotdeal said: The car is exactly what I want, priced several thousand below BB, I don't have to pay sales tax or dealer feesWhy dont you have to pay sales tax? You are completely buying it for 24k in cash/cashier's check.

xoneinax said: needahotdeal said: The car is exactly what I want, priced several thousand below BB, I don't have to pay sales tax or dealer feesWhy dont you have to pay sales tax? You are completely buying it for 24k in cash/cashier's check.

Unless something has changed, in Ga. you do dot pay sales tax on private party sales. I would have to pay tax if I bought if from a dealer.

Sites like:

http://www.swapalease.com/
http://www.leasetrader.com/

Let folks takeover someone else's car lease. They have an escrow type of service if I remember correctly. Wonder if you can use something like that.

Also, not sure what Chrysler car (used) is worth $24K. That should be the real point of discussion.

needahotdeal said: ajkghemee said: needahotdeal said: germanpope said: doesn't sound like he owns much of this car

have him give kick in $2000 --- then deal with the lien holder --- ask them directly how to handle this

I am sure they would prefer the $24k over the POS car


1. What makes you think it's a POS car?
2. Why do you think they would want the $24k, and lose the interest they are collecting on that?


because if you don't pay for the car, it's possible nobody will.


Maybe I'm missing something here. Don't finance companies make money off financing things? If nothing is financed, how do they actually make money?


Amortization

They have already made their money. At this point, they will jump at the chance to ditch the loan.

I bought a car off CL that had a lien on it. The lien was about half the value of the car. I called the finance company to confirm the amount of the lien, and then did a bill of sale with the owner that provided half of the money went to him and half to the finance company. I took possession of the car and title after sending the money to the finance company, then gave the rest of the money to the owner. Your scenario sounds easier, since you can just deal directly with the finance company, pay the finance company, and have the title transfered to you. It is a little extra work, but I would do it again.

bill of Sale, take possession, and get a POA to transfer title.

Check with your state if they allow the buyer and power of attorney to be the same person, if not, use someone you trust, like a brother or sister.

POA = Power of Attorney.

I just bought a car where the title was in the bank. This is what I did. I agreed to pay half using a cashiers check and I made a copy of his drivers licence and also visited his hime and the owner paid off the loan and wrote an agreement that once he gives me the title, i pay him the balance. I held on to the car during that period. It took 3 weeks. It was a tricky situation because he could have come at night with a spare key and driven off the vehicle, but at least I had his drivers licence and the sale agreement so I would have made a police report for fraud. That was the only thing I could have done.

The other option for u is to ASSUME his loan. Once the loan is assumed, they will change the title to ur name. After 5 months, pay off the car and get the bank to release the title to u. Look into this

jigsaw1975 said: The other option for u is to ASSUME his loan. Once the loan is assumed, they will change the title to ur name. After 5 months, pay off the car and get the bank to release the title to u. Look into this

Why wait 5 month?

JasonTexas said: bill of Sale, take possession, and get a POA to transfer title.

Check with your state if they allow the buyer and power of attorney to be the same person, if not, use someone you trust, like a brother or sister.

POA = Power of Attorney.


This is what I was thinking too. Seems like there should be a simple, elegant solution to this, but the power of attorney is the only thing I can think of. You'd want to have that notarized by the seller. Then as long as you trust the finance company to actually send the title to your address, you can sign the title over to yourself by signing "Your Name for Seller's Name as attorney in fact" or something like that. Combined with the notarized power of attorney document, the state title authority should accept that as a valid transfer to yourself. Might want to run that by them to make sure. Would like to know what you end up doing in this situation.

I heard something similar on a talk show here about someone having cash for car but it was seller calling in
you do 4 bills of sell you get two to buyer mileage,must be included on bill of sale plus vin number
if you find out if they have a branch that they can pay bill at so you can go and pay for car. meet at bank same time have bills of sell notarized. while your there you can have title sent to you or you might can ask seller if he can call and ask for them to send title for customer to pay off.
i know that this talk host has mp3 of his show on web site may have other means also
http://clarkhoward.com/archives/clarkshow.html friday the 23rd it says one hour on motorcycles and the other says time shares but it is really a mixture of things. he has good advice and tells on alot scams that take place. i really hope this helps

Unless it is a Dodge Viper or a work truck you should ask yourself why you are paying $24k for a 2-3 year old Chrysler product.

Skipping 46 Messages...
louieeG said: I sold a car that had a lien on it. This is what I did, and what Lexus financial services told me to do.

1. Sign a bill of sale between both parties.
2. Buyer takes delivery of vehicle.
3. Seller receives payment for vehicle.
4. Seller sends payoff amount to bank.
5. Bank sends title to seller.
6. Seller receives title, signs over title to buyer, and mails it to buyer.

Am i making it too simple?
And if Seller takes off to the high hills with the payment?
7. Bank repos car out of buyers parking lot.

I like the idea where you pay seller the difference between payoff and his price. and send the payoff to the bank.
Edit : Doh, then the buyer could take off the high hills. Jeez, used car purchases are such fun.



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