Closing a deal on a 430 Spyder with private party

I always prefer to use a wire transfer when closing a deal. I have a "dummy" account set up with my broker that is designated for my transactions so the other party never has access to my actual account info. I would highly recommend this if you are doing a high dollar transaction and have other funds in your account.

 

An even more secure way might be to pay for the car by a used car loan then pay off the loan immediately. The last time I did that, the bank officer was very thorough in checking the car to protect the bank in making sure the title was clear and such.

 

You want to check with a state vehicle title office. Someone can get a title and then take out a lien on it at a later date. You won't have clear title to the car unless the state has verified there are no liens of any type and you are purchasing from the rightful owner.

Oh, and congrats!

 

Depends on state of registration. Some states let the owner hold the title even when there is a lien. If not, then the title will be in the hands of the lien holder and not released until the lien is cleared, then a new title is printed by the state without a lien holder listed.

Either way, if you look at the title, there will be a section for "lien holders". If its blank, then the title should be clear.

By the way, for transactions like this (really high dollar private party) some use a third party facilitator (escrow service). So money goes to legally assigned third party, title goes to third party, third party validates that everything is good, and then releases everything once validated.

 

Some (perhaps most) of these loans contain fine print which prevent you from paying off the loan until the 13th month. They want at least 12 months of interest, otherwise they're not making money.

 

Wow this is complicated.

I flew out to AZ, handed the guy 2 checks, one from PenFed and one cashiers check from my bank, drove the car home.

PenFed is doing 1.99% right now and it was super easy right over the phone and net. I agree with doing a small loan on the car like I did, they will check the title for you and make sure there are no issues although in my case it was because I didn't have enough money to buy the car, the checking of the title was a nice benefit. I will be paying off PenFed within the first year, no prepayment penalty.

This was a month ago, super easy and uncomplicated.

Mike

 

That's a great rate. Military or government employees only, if I'm not mistaken.

 

I am neither and I was able to join. Its designed for Military or Gov employees but anyone can join, they have some reciprocal memberships. $15 to join the "Voices for the military" organization and now you can sign up with PenFed. They really made getting a loan EASY (good credit rating helps of course).

 

I say, don't hand over any money until you have the keys, the car, and the clean TITLE.

Too many people pull shady stuff.

Unless, of course, you are dealing with a very reputable dealer.

 

IME, and IMO, a reputable Dealer wouldn't have it any other way. Keys, car, title, money.