Buying a Car that isn't paid off?
11-06-2007, 01:37 PM
#1
Drifting
Thread Starter
Buying a Car that isn't paid off?
How would you do this?? The TSX I'm looking at is an 04, and isn't completely paid off yet. How would we buy the car if the owner owes money, and it's still technically the bank's property. People must do this all the time because you see new cars for sale all over the place. We could take on the payments, but my parents want to buy it cash so there are no monthly payments. Anyone have any experience with this? 
11-06-2007, 02:05 PM
#2
Cruisin'
Join Date: Sep 2007
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yeah, you go to the bank with the current owner and pay off the loan that the current owner has, then the bank will sign over title to you. If it's not a local bank then you can probably do it through the mail/phone but takes a little more time. And you don't need to do cash, you can do it through your financing company too.
11-06-2007, 02:27 PM
#3
Trolling Canuckistan
Not sure how it works in Cali, in MA it's a big pain in the ass.
You need the title before you can register the car.
The bank has the title.
The bank wants the money before the title will be released.
You don't want to pay the cash without the title in hand.
The current owner doesn't have the cash to pay the car off and get the title.
You don't want to pay the bank and wait 6-10 weeks to get the title so you can start driving your new car.
Like I said, its a big pain in the ass.
You need the title before you can register the car.
The bank has the title.
The bank wants the money before the title will be released.
You don't want to pay the cash without the title in hand.
The current owner doesn't have the cash to pay the car off and get the title.
You don't want to pay the bank and wait 6-10 weeks to get the title so you can start driving your new car.
Like I said, its a big pain in the ass.
11-06-2007, 03:28 PM
#4
Originally Posted by black label
Not sure how it works in Cali, in MA it's a big pain in the ass.
You need the title before you can register the car.
The bank has the title.
The bank wants the money before the title will be released.
You don't want to pay the cash without the title in hand.
The current owner doesn't have the cash to pay the car off and get the title.
You don't want to pay the bank and wait 6-10 weeks to get the title so you can start driving your new car.
Like I said, its a big pain in the ass.
You need the title before you can register the car.
The bank has the title.
The bank wants the money before the title will be released.
You don't want to pay the cash without the title in hand.
The current owner doesn't have the cash to pay the car off and get the title.
You don't want to pay the bank and wait 6-10 weeks to get the title so you can start driving your new car.
Like I said, its a big pain in the ass.
11-07-2007, 05:15 PM
#6
Intermediate
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Originally Posted by zguy95135
Jesus, 6-10 weeks. I hope it wouldn't take that long, that just seems excessive =/
11-07-2007, 09:32 PM
#7
i sold my RSX and TSX and i still owed money on it (to AHFC). the buyers gave me a bank check for the selling price, which i cashed and used to immediately pay off the loan. i called AHFC a day or two later when the payment cleared, and requested a quick release of the title to the DMV. it took maybe 3 more days and i went to pick up the title, signed it over on the back to the buyer, and i was done. i drew up a bill of sale just for proof of sale, and that was that.
if the other person was financing, then i had to have AHFC release the title to his bank instead, and he could title the car in VA so long as he had an old registration card of mine and the bill of sale.
again, that's Virginia.
if the other person was financing, then i had to have AHFC release the title to his bank instead, and he could title the car in VA so long as he had an old registration card of mine and the bill of sale.
again, that's Virginia.
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11-08-2007, 10:36 AM
#8
Trolling Canuckistan
Most larger banks don't keep paper titles any more (small ones do and some credit unions). Think of how much storage AHFC would need to have to keep paper titles on all the cars they have on the road.
Usually they use an electronic title. The title just sits in cyber space until the Lein holder says to release it. The RMV (DMV) then processes the lein release and prints a title, then mails it out.
This is really a state by state and bank by bank issue. I've had Chase take 3 months to get us a title, I've received them from local credit unions in a few days.
Usually they use an electronic title. The title just sits in cyber space until the Lein holder says to release it. The RMV (DMV) then processes the lein release and prints a title, then mails it out.
This is really a state by state and bank by bank issue. I've had Chase take 3 months to get us a title, I've received them from local credit unions in a few days.
11-08-2007, 02:58 PM
#9
Still Lovin my 06
i'm confused. you buy the car off someone. say they owe $25,000 and you buy it for $23,000, you buy the car, they take your $23,000 and pay it to the bank, and they have to pay the rest. the title transfers names just like in any other situation. if you pay cash, you get the title, if you finance it, the bank you finance it with gets the title.
IMO it's stupid to pay cash cause interest rates are so low, but that's your parents' decision. tell them they can get a car loan at 6%, and invest the money most likely earning 8% or more. they'll be impressed by your financial savvyness.
anyways, don't pay the price that they owe the bank, pay market value, whatever that may be (unless market value is more than what they owe the bank, then offer him what he owes the bank!)
IMO it's stupid to pay cash cause interest rates are so low, but that's your parents' decision. tell them they can get a car loan at 6%, and invest the money most likely earning 8% or more. they'll be impressed by your financial savvyness.
anyways, don't pay the price that they owe the bank, pay market value, whatever that may be (unless market value is more than what they owe the bank, then offer him what he owes the bank!)
11-08-2007, 03:05 PM
#10
Just dial 1911
Join Date: May 2004
Location: San Diego, CA
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In CA we have "paperless" titles so you can transfer ownership. Its the 227 form. Once the seller pays the bank in full, they will send him a 227 to fill out. Then you fill out, take to the DMV to register and they will print you a title.
The trick is to make sure the seller pays off the car immediately. If its a large bank, usually you can just meet up and do the entire process while your there. Other then that, they would have to fedex a check to the bank. If you both agree on a price, and its above what the payoff is, then to make sure you could make the check out to the bank, and cut the seller a check for the difference, but hold it until you get that notarized 227 form from the bank.
The trick is to make sure the seller pays off the car immediately. If its a large bank, usually you can just meet up and do the entire process while your there. Other then that, they would have to fedex a check to the bank. If you both agree on a price, and its above what the payoff is, then to make sure you could make the check out to the bank, and cut the seller a check for the difference, but hold it until you get that notarized 227 form from the bank.
11-08-2007, 04:51 PM
#11
Originally Posted by bradykp
i'm confused. you buy the car off someone. say they owe $25,000 and you buy it for $23,000, you buy the car, they take your $23,000 and pay it to the bank, and they have to pay the rest. the title transfers names just like in any other situation. if you pay cash, you get the title, if you finance it, the bank you finance it with gets the title.
IMO it's stupid to pay cash cause interest rates are so low, but that's your parents' decision. tell them they can get a car loan at 6%, and invest the money most likely earning 8% or more. they'll be impressed by your financial savvyness.
anyways, don't pay the price that they owe the bank, pay market value, whatever that may be (unless market value is more than what they owe the bank, then offer him what he owes the bank!)
IMO it's stupid to pay cash cause interest rates are so low, but that's your parents' decision. tell them they can get a car loan at 6%, and invest the money most likely earning 8% or more. they'll be impressed by your financial savvyness.
anyways, don't pay the price that they owe the bank, pay market value, whatever that may be (unless market value is more than what they owe the bank, then offer him what he owes the bank!)
11-09-2007, 04:30 AM
#12
Still Lovin my 06
Originally Posted by Simba91102
He didn't say anything about paying what the loan balance is for the car, he just was wondering about how to buy a car that has a note on it. Don't confuse paying the bank off with what the purchase price is. Completely different issue. It doesn't matter if the loan balance is $2000 or $20,000, the lender holds the title and the lien has to be released. And I have no problem with paying cash. You're not going find anything approaching 8% (or probably even 6% for that matter)(after taxes, since the money you're paying the loan off with is after tax money) in this country (that will preserve you're capital and is legal anyway).
11-09-2007, 04:32 AM
#13
Still Lovin my 06
Originally Posted by frescagod
i sold my RSX and TSX and i still owed money on it (to AHFC). the buyers gave me a bank check for the selling price, which i cashed and used to immediately pay off the loan. i called AHFC a day or two later when the payment cleared, and requested a quick release of the title to the DMV. it took maybe 3 more days and i went to pick up the title, signed it over on the back to the buyer, and i was done. i drew up a bill of sale just for proof of sale, and that was that.
if the other person was financing, then i had to have AHFC release the title to his bank instead, and he could title the car in VA so long as he had an old registration card of mine and the bill of sale.
again, that's Virginia.
if the other person was financing, then i had to have AHFC release the title to his bank instead, and he could title the car in VA so long as he had an old registration card of mine and the bill of sale.
again, that's Virginia.
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