buying used car with a huge lein
#1
buying used car with a huge lein
I am trying to buy a used car from a person with that still has a car loan for it. For this example, say the buyout for the loan is $29k, but he agrees to sell the car for $25k.
Too tell you the truth, though, the person really did not tell me how much his buyout is. He mentioned that he has a loan for it, and he needs to leave the country for work reasons. I just don't want to be screwed by getting stuck with the bill from the bank.
How can I make sure that the bank doesn't come after me for the rest of the $4k? Isn't this the biggest danger in buying a used car from a person when the car is relatively new? (that is, there is usually a big loan that needs to be paid off).
Thanks for your help.
Too tell you the truth, though, the person really did not tell me how much his buyout is. He mentioned that he has a loan for it, and he needs to leave the country for work reasons. I just don't want to be screwed by getting stuck with the bill from the bank.
How can I make sure that the bank doesn't come after me for the rest of the $4k? Isn't this the biggest danger in buying a used car from a person when the car is relatively new? (that is, there is usually a big loan that needs to be paid off).
Thanks for your help.
Last edited by itamijin; 11-15-2004 at 09:24 PM.
#2
not such good advice
the loan is in his name, and his bank consquently will have a lien on the vehicle title until he pays off his loan.
so if you go ahead and give him the 25k, he can do anything he wants with the 25k - he can disappear (leave the country) and you will be left 25k poorer with a car that the bank owns because they have it as collateral on a loan that has not been paid off.
in other words you need a clean title with no liens on it and i don't recco giving 25k to a complete stranger nor following random *** advice in this forum on the matter of consumer finance law :-)
the loan is in his name, and his bank consquently will have a lien on the vehicle title until he pays off his loan.
so if you go ahead and give him the 25k, he can do anything he wants with the 25k - he can disappear (leave the country) and you will be left 25k poorer with a car that the bank owns because they have it as collateral on a loan that has not been paid off.
in other words you need a clean title with no liens on it and i don't recco giving 25k to a complete stranger nor following random *** advice in this forum on the matter of consumer finance law :-)
#4
Originally Posted by jozza
not such good advice
the loan is in his name, and his bank consquently will have a lien on the vehicle title until he pays off his loan.
the loan is in his name, and his bank consquently will have a lien on the vehicle title until he pays off his loan.
If he can give you a real title, then you shouldn't have to worry about his bank.
#5
He's as bad as Can
Both of you get together & call the bank to get the buyout, some even give that info online. If the buyout is $29K You get $25k + HIS $4k fed ex to the bank and pay off the loan and get the title. Paying off the whole loan at the time of purchase is the only real way to cover yourself. Even if he signs something and screws over the bank they (bank) will repo the 8 and you will have to sue the other guy.
#6
Originally Posted by expo1
Both of you get together & call the bank to get the buyout, some even give that info online. If the buyout is $29K You get $25k + HIS $4k fed ex to the bank and pay off the loan and get the title. Paying off the whole loan at the time of purchase is the only real way to cover yourself. Even if he signs something and screws over the bank they (bank) will repo the 8 and you will have to sue the other guy.
By the way, in Wisconsin, the owner has the vehicle title, but it has a lien listed on it. Someone said that the bank holds the title, but I think this differs by state.
#7
Originally Posted by jaedcem
By the way, in Wisconsin, the owner has the vehicle title, but it has a lien listed on it. Someone said that the bank holds the title, but I think this differs by state.
#8
Twisties for 1000, Alex
Join Date: Dec 2003
Location: Virginia
Posts: 122
Likes: 0
Received 0 Likes
on
0 Posts
As others have pointed out, what happens with the actual physical title varies from state to state. Maryland gives you the title (with a clear indication there is a lein on it) where Virginia sends the title to the lein holder.
Another important semantic thing to note here. The lein holder does not "own the car." You are the owner, the bank has a "security interest" in the car. If, for example, you owe less than the car is worth, and default on the loan, the bank has to give you the difference between what you owe and what they sell it for.
Of course in order to transfer the title (sell the car) all owners and all lein holders have to release the title.
Best advice for the original poster is to pool their money with the original owner's money to make up the difference. Both of you go to the bank and get a cashier's check, and then both of you mail the check to the lein holder. That way you know nobody is getting screwed.
---A
Another important semantic thing to note here. The lein holder does not "own the car." You are the owner, the bank has a "security interest" in the car. If, for example, you owe less than the car is worth, and default on the loan, the bank has to give you the difference between what you owe and what they sell it for.
Of course in order to transfer the title (sell the car) all owners and all lein holders have to release the title.
Best advice for the original poster is to pool their money with the original owner's money to make up the difference. Both of you go to the bank and get a cashier's check, and then both of you mail the check to the lein holder. That way you know nobody is getting screwed.
---A
Last edited by livitup; 11-16-2004 at 02:22 PM.
Thread
Thread Starter
Forum
Replies
Last Post