Buying a New Car

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The owner of this vehicle still owes on his loan.  Is it safe for me to give him the cash at my bank and then take home the truck + a bill of sale? Im in SC.

He will take my cash and pay the truck off, meanwhile sending me the title in the mail.

I am always sketched out when dealing in cash. No paper trail.  

 

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Phenomix said:   The owner of this vehicle still owes on his loan.  

 

  How is that buying a new car???

I wouldn't do it. He can't release the vehicle to you, he doesn't own it, the bank does.

Even with a bill of sale, how do you sign a bill of sale for something when you don't own it?

I see where this goes... next post is, help, I bought a car from someone and now it has been repossessed by the bank and I can't reach the seller!

 

Thanks for the input.

So a bill of sale is no good? Since the bank owns the note. He is telling me his bank isn't open on Saturday. Otherwise I would meet him there.

Wait until Monday?

Phenomix said:   The owner of this vehicle still owes on his loan.  Is it safe for me to give him the cash at my bank and then take home the truck + a bill of sale? Im in SC.

He will take my cash and pay the truck off, meanwhile sending me the title in the mail.

I am always sketched out when dealing in cash. No paper trail.  

 

Ask him if he's from British Columbia.  See this thread  https://www.fatwallet.com/forums/finance/1521627 

All joking aside, do not buy this truck unless:
1.  He can give you the title once you give him the $ for the truck.
2.  You can verify the payoff with the bank, that amount is at least what you're paying and you can make out the check to the bank.  If he wants to sell the truck, he needs to take care of the negative equity because chances are, there probably is some negative equity. If not, great, the transaction should be easy once the bank opens on Monday. 

Anyway, you should read the thread above.  It's entertaining and if nothing else, proves my point about private party auto sale transactions.
 

rufflesinc said:   
Phenomix said:   The owner of this vehicle still owes on his loan.  

 

  How is that buying a new car???

  
New to him!

RailroadTrack said:   rufflesinc said:   
Phenomix said:   The owner of this vehicle still owes on his loan.  

 

  How is that buying a new car???

  
New to him!

Then everything is new!

Phenomix said:   Thanks for the input.

So a bill of sale is no good? Since the bank owns the note. He is telling me his bank isn't open on Saturday. Otherwise I would meet him there.

  What bank isn't open on saturday?

you need to pay his bank directly, otherwise where is the incentive in him doing it?

And you should see a payoff amount on his loan, or else even if you pay him, you won't clear the lien

I did it at my bank last time and I took a loan.  The loan officer at my credit union got the payoff amount, made the check out to the other bank and sent it to them.  In NY the owner has the title with a lien.  So he signed over the title at my bank.  The lien got cleared electronically by the other bank when they recieved the payment.

double post

Yeah im not sure. Must be a credit union of some kind.  My bank is TD Bank. Could I do the transfer through banks tomorrow? and then pickup Saturday? 

Obviously I would have to approve of the truck. I haven't seen it in person yet.  I work M-F. and I live and hour away from the vehicle.

Phenomix said:   The owner of this vehicle still owes on his loan.  
 

  Then the bank is really the owner. This guy is just driving it.

Phenomix said:   Yeah im not sure. Must be a credit union of some kind.  My bank is TD Bank. Could I do the transfer through banks tomorrow? and then pickup Saturday? 

Obviously I would have to approve of the truck. I haven't seen it in person yet.  I work M-F. and I live and hour away from the vehicle.

  If you can't take a half day off from work to deal with a many thousand dollar purchase because there is a lien, maybe you should find another seller that has the title in hand. Check it out, hand over the cash, get the title, take it home. Half hour plus travel time.

This has all the hallmarks of a scam, especially 'take the cash and pay off the vehicle'.

Sorry OP, but I hope you don't fall for this.

Find another truck, this one is not for you. If it is a really great deal, that's why you are still considering it, then that is simply another red flag.

JavaCoder said:   
Phenomix said:   The owner of this vehicle still owes on his loan.  
  Then the bank is really the owner. This guy is just driving it.

  
tennis8363 said:   I wouldn't do it. He can't release the vehicle to you, he doesn't own it, the bank does.

Even with a bill of sale, how do you sign a bill of sale for something when you don't own it?

 

  Ugh.   An impaired title in no way, shape, or form equals a lack of ownership.


Wanting cash so you can supposedly pay off the loan and clear the lien next week, could indicate a lack of legit ownership....

Banks have a way of handling this but the best solution is to go to a car dealer and have them handle it. They will charge a fee but the seller is the one looking to get out of the loan, make them eat the fees.

Glitch99 said:   
JavaCoder said:   
Phenomix said:   The owner of this vehicle still owes on his loan.  
  Then the bank is really the owner. This guy is just driving it.

  
tennis8363 said:   I wouldn't do it. He can't release the vehicle to you, he doesn't own it, the bank does.

 

  Ugh.   An impaired title in no way, shape, or form equals a lack of ownership.

 

+1 Glitch.

Why do people like to say this nonsense about "you don't really own your house, car, etc?"  Anybody know what a lien is?

OP - If you really want this truck, take a day off, go look at it, and go to his bank to complete the deal so that you can leave with proper documentation in hand.  If you can't or don't want to do all that, then go buy a car from a dealer.  I mean that in all seriousness.  All that convenience of avoiding travel, paperwork, and RISK, comes at a cost. 

troutspinner said:   Banks have a way of handling this but the best solution is to go to a car dealer and have them handle it. They will charge a fee but the seller is the one looking to get out of the loan, make them eat the fees.
  That's the best option, plus they're open on Saturdays (and maybe even Sundays).  While not technically correct, you are effectively buying the car from the dealer, and the dealer is buying it from the seller - so you are trusting the dealer to use your money to pay off the lien, and you have recourse against them if they do not.  There are very few reasons a legit seller would oppose conducting the transaction this way, especially if you offer to split the dealer's fee.

OP, look into escrow services such as Escrow.c0m....they charge couple of hundred bucks fees for their services but they handle everything for you and the seller.  You both have the protection.

If you hand the seller cash there is no guarantee that they'll payoff the lien and in case they don't payoff the lien then 1. You won't have title with lien release in your hand which means you can't transfer it in your name which means you're driving a vehicle that is not registered in your name which means you can't get insurance on that vehicle which means if you get into an accident.... Also if the seller's unpaid loan becomes delinquent then the bank will repo the vehicle now you're out of cash and you no longer have the truck.  The Bill of Sale is worthless unless you take the seller to court, go through the lawsuit process and win the lawsuit the collect from the seller.   Do you see where this is going ?

I

Thanks for the input. The buying a car used car thing is not my favorite activity.



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