Post # 1
So basically the bank would have a lien on the car since the seller is still paying their loan off. When buying this car, do I write a check to the bank and go to the bank with the seller to make sure they pay off the loan and the title is now mine?
Does the cashier’s check generally get made out to the seller or the bank then? Will I get the title right away from the bank or will they just give me a letter saying the lien is removed and the title is coming soon?
Lawyer bees help me out. 🙂
Post # 3
Do NOT write the person the check! I would write a check to the bank if its local, go in with the seller. If its a check, it will have to clear & that usually takes a few days so a money order would probably be best.
Post # 4
Yes, but the opposite. I once had a loan left on a used car, and sold it to a friend. He just went with me to the car dealership (it was a really low key place, a dad and his two mid-20s twin sons ran it) and my friend wrote a check for the balance of the loan. We went from there to the DMV and then he dropped me off at my apt and he kept the car!
DO NOT write a check to the owner of the car! Go to the bank / dealership. You hand them a check, it’s like giving them cash; there is no return guarantee!
Post # 5
I’m pretty sure that when I paid off my car loan it took a few days to get the paperwork from my bank, they mailed it to me along with the title & a note that it had been paid in full. When I got that, I took all the paperwork & went to the DMV. I had to pay them money to change the title to my name. It was really simple.
I know PP & myself already said not to write the person the check… but here’s why: The person could SAY they’ll pay the car off, but could take the money & run (go buy a hot tub or whatever they wanted for themselves & not pay off the car). The bank wouldn’t have been paid for the car & so would still need to be paid for the title. So it could get really messy. If the seller is selling the car for MORE than he owes, the bank will send the seller a check for the difference. So you don’t have to worry about paying anything to the seller if the bank holds the title.
Its best to meet at the bank.
Post # 6
I sold a car a few years ago, and the guy actually wrote me a check, I took it to the bank and got the lien release right then and there. Maybe not smart on his part, but the thought never crossed my mind to keep his money.
Post # 7
Yes definitely go to the dealer/bank. FI has a friend that bought a car and didn’t know their was still a loan on it. The guy pocketed the money, and Fi’s friend had the car taken from the bank.
Post # 8
I just sold my car privately and I still owed on it. The person we sold it to was a friend of DH’s family so they wrote us a check, we sent out the remainder of the loan to the bank and got the title 2 weeks later (took a total of 3 weeks). It probably helped because they felt they could trust us, but if I was to buy a car that still had a loan on it, I’d do what PPs said to ensure they are actually paying it off. Good luck!!