I'm looking to buy an RDX sometime August/September (would put 50% down), but found a good deal from a private seller. Its a 2008 RDX with 80K miles. He is willing to do 28 payments with a 5k down in September. If I was to do this, I will be paying the car in full by Feb.

My main question is how do I purchase something like this from a private seller knowing that once I do finish payments that he will transfer the title to my name?

Both of us agreed upon going to bank and getting a notarized contractual agreement. Once this happens, and once I have paid in full, is there anyway he can dupe me and not transfer the title? He says he is going 'out of the country' for work for a short time. This is a LOCAL sale, so I don't believe it's similar to a 'online scam'.

What should I be aware of?

 

I wouldn't do it without a title transfer first, then he can have a lawyer hold it until the contract has been paid in full. A payment contract is legal, so why not just sign the car over to you. Without the title in your name, you can't insure it and registration doesn't match your name.

 

In Texas the title is transferred to the new owner and a lien is placed on it. There is a section on the back of the title for up to three liens. In the contract he will make the vehicle collateral and release the lien upon final payment. Just make sure there are not any early payment fines as those do exist.

 

Perfect. I'll keep reading up on it.

Thanks for the advice!

So I will have to pay TT&L now?

 

Yes. It would be silly for him to keep all that in his name with you driving seeing as 1) it's illegal to have it registered anywhere besides the primary driver's primary residence and 2) he's on the hook if something illegal happens in his car and it gets called in by the plate.

On top of that, like BDog said, it can't be insured like that.

 

Still smells like a scam! I personally wouldn't do it as there are too many possibilities of what could happen with a private seller who's leaving the country!

 

To do it right you will need to basically mimic a sales contract from a dealer. Seller will also need to perfect his security interest in the vehicle.

 

Hmm ok.

So basically:

Make him transfer title.
We sign a contractual agreement (notarized) that I will pay him xx amount per month/lump sump by xx date.
He is a lien holder, but the title is under my name.
I finish paying x amount of money and he is then taken off the lien. (How does this work?)

 

^ I'd be worried about him as a lien holder. Not b/c he doesn't have a right to be one... but if he's going "out of the country" and just disappears, what is to stop him from never removing the lien? I mean sure, you can have a contract that states it will be removed after payment is satisfied... but still... what's to stop him from dragging his feet on it? Then you have to go through the headache of going to court, etc. just to get a clean title.

Unless you know the person... I wouldn't do it. Too many variables...

 

The best and obvious solution is to get a short term loan from the credit union, pay the seller in full, take the title to the CU, they will put the lien on it, and release it upon final payment. Since you are (were) a tea-sipper, University Federal Credit Union is the obvious choice for your situation. The seller has to legally collect interest from you that is at least 0.2% (short term <36 months IRS requirement). The UFCU should be able to match that, and then you are dealing with a reputable institution and not Joe Shmoe who is fleeing the country.

 

^thats how I would do it

 

PS will let you make payments? What an idiot (nothing personal). Has the seller ever watched "Judge Judy" or "The People's Court?"

 

This has Scam written all over it.

 

I was thinking that originally.

I am unable to do it through a bank because I will be unable to finance at this time because of credit. Now I will be able to do it in September (larger down payment) that will result in approval (hopefully).

I'll see what is up, not sure if I'm going to do it but just was one of those spur of the moment type ordeals

 

PS I misunderstood, he does business trips because he's a broker. But he will not be out of the country, but out of the state.

 

Finance through a company/bank/credit union rather than a person.. & if your credit's bad or whatever the case may be just wait it out?

 

If you can't afford it or can't get approved now... don't do it now

 

I would go through a bank/credit union. This type of situation usually never ends well.

 

just say

 

This was my original plan. The only thing that changed was that this price is to good to pass up.

I can afford it, just need a bigger down payment due to credit. 15% of my total income is way more then the payment per month.


I'm leaning towards no, but I want to give this a chance.

He says that Capital One would put me as a third party purchaser and that Capital One (the true owner of the car) will transfer the car into my name once payments have been made. I'm trying to get more details, but it seems like I'm just taking over payments he has already made or Cap 1 is willing to be the middle-man in this situation... in this case I may do it.

 

Buy a cheaper car and get your credit situation figured out first... Are you in college? or post graduate study?

You are playing with alot of fire in this situation because you are inexperienced, and there is alot of exposure...

 

Credit situation is already being fixed.

I should have a 700+ score in two years, because I have or will be paying every collection and debt with a PFD letter. Also have 3 secured credit cards along with 1 unsecured. I also have a secured loan and all at a 5-9% utilization rate (all stuff I learned from FICO site/forums)

I don't see why I should buy a cheaper car if I can afford it easily as the car isn't too expensive. Either way, if I don't buy the car in question, then I will be purchasing one in a couple months from a dealer.

 

I don't know your personal situation, but if you are paying off collection agencies, and can't get a bank loan, i'd square all that away first. I'm the overly pragmatic type though. I have friends who have $400 car leases, maxed out CC's and living at home w/ mom and dad in their 30's... Different strokes... My goals out of school were to get financial situation in order and to purchase a home. Be as cheap and forward thinking as possible.

 

You sound like my wife. I'll tell you what I tell her. If there's a good deal now, they'll be a good deal later. They're always out there...

 

Champ, go thru with it and report to us once you finish the payments! That's the only way to find out if any or all of us are just talking out of our asses!

 

LOL, the infamous 'BUT there was a 25% off sale'

 

Reason why I can't get a car loan atm is because I am paying these collection agencies and so fourth. I had 12k in debt that I have separately in a account to pay these debts. I will have more money come a couple month which would allow me to purchase the car either in full or 50% down. But I get what you're saying and am very careful with my money nowadays compared to before.

haha true, but I've been looking for the past 9 months! Everywhere I find a deal it is either 1k+ miles from me which I would have to pay two state taxes which would end up costing me more.

 

Believe you only have to pay state sales tax in the state you register the car...

 

I have purchased 3 cars from out of state ( IL, MN) and only had to pay taxes according to where I reside. The only fee I had to pay was a "drive-away" fee, something like $10, that allows me to drive the cars home.

 

Oh never knew that. I was told by a few people that I'd have to pay two state taxes. Well that helps if I decide to go to another route. Thanks!

 

Wait if you're paying off your debt and all why couldn't you get them to clear your credit or show credit companies that its being taken care of? My parents settled on the side with a bank and it didn't effect their credit.

 

PFD = pay for delete. I had 5 collections. 4 agreed to this letter so far. CC companies on CO (charge offs) have to be paid in full. I request a GW or good will for them to take the report off my credit. My credit will be clear and so the score will increase gradually because my AAoA or average age of accounts are low.

 

^ - You need to be more aggressive with clearing that shit off of your credit. The reporting agencies are not on your side and collection agencies are bitches about reporting correct updated info. Most of the time the collection agencies forget that they don't have to report, but if information is reported, it cannot be incorrect.

 

average age? or balance? Age of accounts being low mean they are relatively recent, and your score increases the longer you hold them. Avg account balance as a ratio to credit limits is also a factor, and obv you want it low...

 

Both. My utilization rate for my CCs are 1-9%. Exactly on the age of accounts, which is why my accounts are fairly new (<1 year).

 

Decided not to do it. I'll just be patient and wait and buy it from a dealer.

 

I think you made a good call . Bet the next deal you find is cheaper and works out better for you. Good luck with everything.

 

It's not like RDXs will get more expensive as time passes.

 

+1

 

Smart man....