How Do You Purchase A Private Party Vehicle That Currently Has A Loan On It?

You could probably just pay his bank directly, right? Or put it in escrow or something? I've wondered how this works myself.

 

I did this with my F355

Its super easy. You get on phone with the seller and their bank so you can hear the actual payoff amount. You then cut cashiers check to bank for payoff and balance to seller.

Bank will send title to you.

Done.

 

Interesting - I never knew that myself. But then again I never sell cars I buy....LOL!!!!



PDG

 

Careful though - not all banks will send the title directly to the buyer. Make sure you get this in writing from the bank. Small banks will, large banks don't usually.

But, unless you can do what Jerry said, don't buy the car. Period.

 

I did this with a truck I sold a few years ago. The buyer wired the payment directly to the bank then he wrote me a cashiers check for the remaining amount. The bank then sent him the title.

 

I did this not long ago, and I was the seller.

I had buyer come to bank , get a cashiers check in the amount of the payoff and make payable directly the bank with the loan (small bank in midwest), I put it in a FedEx envelope, and off it went right then and there. Balance was deposited right into my account. Buyer left with car (plus we had a notarized agreement drawn up too).

3 weeks later title showed up, I signed it over, and overnighted it to the buyer.

All clear.

 

You go WITH him to the Bank and they execute a Release of Lien after he hands them the pay off money.

 

If you took out a loan to buy the car you don;t get the title (well you do when you pay local sales tax) but the bank loaning you the money is the new Lien holder.

When you pay them you get a clear title.

But you should always pay cash for toys!! LOL!