what would you do?
Thread Starter
Intermediate
Joined: Jun 2007
Posts: 38
Likes: 0
From: kingsport tn
what would you do?
I have been interested in buying an 06 a6 vert with 1700 miles on it.We agreed on a price (48k)- I found out the seller still owes 20k on the vehicle. I told him I was unconfortable buying a car from someone who doesn't have the title in hand. He states he will pay off the vehicle immediately and get the title within about 30 days but he wants me to pay him some "earnest" money to insure the sale.I have seen the car and it is flawless and looks to be well taken care of. Is this a wise thing to do or not? I would appreciate any advice and viewpoints from the forum. Thanks
Melting Slicks
Joined: Aug 2006
Posts: 3,056
Likes: 10
From: Wisconsin
IN most states, you cannot legally sell a car unless they can produce the title at time of sale. The earnest money, well that is simply a common practice.
There is another option and that is going through a dealership. It may cost you several hunderd more by you can count on getting the title. All you do is have a dealership purchase the car from him and then you intern purchase it from the dealership. The advantage to this is that the dealership is taking the risk, if any, but you are paying for it.
There is another option and that is going through a dealership. It may cost you several hunderd more by you can count on getting the title. All you do is have a dealership purchase the car from him and then you intern purchase it from the dealership. The advantage to this is that the dealership is taking the risk, if any, but you are paying for it.
Burning Brakes
Joined: Feb 2004
Posts: 782
Likes: 5
From: alexandria louisiana
No big deal if you handle it like a business deal. Are you paying cash? Get your banker, credit union rep. to contact his loan inst. for payoff because they will not release the title until it's clear. My C.U. sent payoff for title then we settled on the difference. I have done this transaction twice without any problems
Le Mans Master
Joined: Nov 2002
Posts: 6,970
Likes: 14
From: Calif
No big deal if you handle it like a business deal. Are you paying cash? Get your banker, credit union rep. to contact his loan inst. for payoff because they will not release the title until it's clear. My C.U. sent payoff for title then we settled on the difference. I have done this transaction twice without any problems
If the guy is honest, he should have no objection. If he does not want to go that route I would walk.
Racer
Joined: Nov 1999
Posts: 441
Likes: 0
From: Houston TX
Standard. Not many people have them paid off. Get him to sign a power of Attorney signing his rights to the car to you. Call and verify payoff and you should be ok. Otherwise let your Bank do it on a short term loan.
MONARTOR
Joined: Aug 2001
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From: What I know, is dwarfed by what I pretend to know
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Burning Brakes
Joined: Jun 2005
Posts: 914
Likes: 1
From: Plant City Florida
If it's a local bank or CU, go the the bank/CU with him and the money. Confirm payoff amt, obtain lien release and have title signed over. Otherwise, no way. Too many things could go wrong.
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Team Owner
Joined: Oct 2004
Posts: 27,420
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From: San Clemente CA
No big deal if you handle it like a business deal. Are you paying cash? Get your banker, credit union rep. to contact his loan inst. for payoff because they will not release the title until it's clear. My C.U. sent payoff for title then we settled on the difference. I have done this transaction twice without any problems
Standard procedure.
CF Senior Member
Joined: Feb 2006
Posts: 23,313
Likes: 25
From: Tucson Arizona
I believe there are 'title service' companies that for a small fee will act as an escrow agent to the transaction. Any costs associated with the lender paying-off his debt or being-able to produce an unencumbered title should be his responsibility. The escrow agent can tell you what is customary.
Chances are the guy is honest but sometimes you never know...CYA.
Chances are the guy is honest but sometimes you never know...CYA.
Burning Brakes
Joined: Jun 2005
Posts: 914
Likes: 1
From: Plant City Florida
Melting Slicks
Joined: Jun 2006
Posts: 2,208
Likes: 1
No big deal if you handle it like a business deal. Are you paying cash? Get your banker, credit union rep. to contact his loan inst. for payoff because they will not release the title until it's clear. My C.U. sent payoff for title then we settled on the difference. I have done this transaction twice without any problems
Race Director
Joined: Dec 2002
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From: Wayne Township WI
Team Owner
Joined: Aug 2006
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From: Coppin' a tan from the Messiah's aura
St. Jude Donor '08-'09
He'll either agree, or start suggesting alternatives, which is your signal to bolt.
Race Director
Joined: Apr 2007
Posts: 12,092
Likes: 123
From: Okiehoma
No big deal if you handle it like a business deal. Are you paying cash? Get your banker, credit union rep. to contact his loan inst. for payoff because they will not release the title until it's clear. My C.U. sent payoff for title then we settled on the difference. I have done this transaction twice without any problems
Sounds like a normal deal to me.. Your banker will carry most of the responsibility on this one if you're borrowing, so no sweat.. If you're paying cash simply find out who holds the lien and send a check to them for the amount owed and pay seller the rest (just make sure you have signed/notarized title and the car in your possession.)
Drifting
Joined: Sep 2004
Posts: 1,936
Likes: 379
From: Northern NJ
Be very cautious in giving any money before you see the title. A friend of mine did this once only to discover the title stated more milage when originally purchased by the seller than the vehicle was showing. Not only that but the seller was not the original owner even though they claimed to be. I think there's some good suggestions here about going to the bank with the seller. Good Luck.
Melting Slicks
Joined: Feb 2005
Posts: 3,380
Likes: 103
From: Visalia CA
whats the big deal about buying a car from someone who doesnt have the title in hand? Most people don't pay cash for their cars, and sell them while they still have a loan on them. You get a notorized bill of sale and DMV transfer paperwork signed by both parties, and it doesn't matter if he sends the money to the bank to pay off the loan or you do. It's no different than buying a car from a dealer with a loan, you don't drive off the lot with the title either.
As long as you have proof of sale and ownership transfer with the DMV, you can't get burned. You have the car, proof you own the car, and the keys. I don't see the problem, do a carfax and write in a right of cancellation clause in the sale if the title shows something that wasn't advertised, like salvage or something.
As long as you have proof of sale and ownership transfer with the DMV, you can't get burned. You have the car, proof you own the car, and the keys. I don't see the problem, do a carfax and write in a right of cancellation clause in the sale if the title shows something that wasn't advertised, like salvage or something.
Intermediate
Joined: Sep 2006
Posts: 45
Likes: 0
When I sold a vehicle that had a loan lien on it I had the buyer accompany me to my credit union. My CU signed off on the title during the transaction. If his creditor isn’t local, at the very least put the name of his creditor along with his on the check. You're basically making it a two-party check between him and his creditor. Also, make a notation on the check that it is for the sale and pay-off of the car loan. Basically you have to protect yourself. Just because someone is nice or appears successful, or has nice things, doesn’t mean they are trustworthy.
Also, if you are financing this, your creditor might be able to help you.
Also, if you are financing this, your creditor might be able to help you.
Pro
Joined: May 2007
Posts: 546
Likes: 1
From: Pittsburgh PA in mind, Atlanta GA in body
If you are going to do the transaction - why don't you just write your check for you "down payment" directly to the bank holding the loan?? That way you know it is going to pay down the title.
Le Mans Master
Joined: Mar 2006
Posts: 5,323
Likes: 2
From: Northern NJ
Contact the bank that has the title/loan. Seller fills out paperwork for the bank and it gets sent in with the entire payment for the car.
The bank then pays the loan, releases the title in your name and sends you a certified check for the balance.
This is how dealers do it on trades. It is easy.
The bank then pays the loan, releases the title in your name and sends you a certified check for the balance.
This is how dealers do it on trades. It is easy.