buying a used car, private sale, with a lien

oobaa47

oobaa47

Well-Known Member
Hi guys, didn't want to threadjack Rollin dice......has anyone had experience buying a used car with a lien? I've done all my homework and apparently the only way to do it is to have the owner fill out a form, and send it in to the finance company along with my check. The finance company then mails him the lien release ppwrk along with the title, which he then has to sign over to me. After that, I go to dmv with the pprwk to register the vehicle and get the title in my name. Not really too comfortable with it. I looked into physically sitting down with seller at the finance company, but that it not going to happen as they are not local. Another option apparently is using an escrow company. I'm not sure how that would work and I'm sure it wouldn't be cheap. This vehicle is at least 4-5K less than what dealerships are asking for it, so it's worth a little bit of a headache, just not a migraine. Benefit of the dealership is that at least they'll take my trade in, but I'm sure they'll hose me. At least I won't have to deal with selling my truck on my own. Thanks guys.......
 
can't help you with the lien. escrow sounds good, are you paying more than the lien?
if the seller can clear the lien without your $$, that would be best. escrow would show you are serious.
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remember when trading in a car, it is a like-kind exchange, and the trade-in reduces the sales tax on the purchase, so it is like an extra
6-5/8% bump on top of the trade in price. if they don't do that, mention that you'll call your friend at the attorney general's office to clarify.

gl.
 
Require the seller clear the lien and have clear title in hand before any of your money leaves your wallet. If not possible, walk.
 
He's gotta clear that lien. Otherwise you are floating him a no-interest loan while it clears with your funds. Seems risky.

I'm sure the escrow company is costly. He's the seller that can't rub two pennies together to pay off the loan, so make him pay the escrow fee (or reduce the cost of the car by that much).
 
Like others said, make sure the lien is clear. Otherwise no deal. You'll end up with a car with a bad title.
 
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