Need help buying a currently financed vehicle
#1
Suzuka Master
Thread Starter
Need help buying a currently financed vehicle
Ok so I am looking at an SUV currently located in Calgary and I live in Edmonton (both cities within my province and about 3 hours apart). The vehicle is privately owned by the first owner, but the owner still owes money on the vehicle.
I called and was told he had to pay off the loan at a financial institution where he owed the money. But it gets fuzzy for me in the whole process. Best case scenario is that he pays off the car fully and then I pay him the money.
But if that is not an option. What do I need to do to protect myself? I want to do everything in the correct order so that I don't get into a situation where I am out all the money.
I am thinking to go with him to the bank and have him pay it off, then getting the form that states there is no lien on the vehicle. Then doing up the bill of sale and putting insurance on it. But that is the ideal situation. What if he doesn't have the money to pay it off?
Thanks in advance. This is the most complicated car buying experience yet.
I called and was told he had to pay off the loan at a financial institution where he owed the money. But it gets fuzzy for me in the whole process. Best case scenario is that he pays off the car fully and then I pay him the money.
But if that is not an option. What do I need to do to protect myself? I want to do everything in the correct order so that I don't get into a situation where I am out all the money.
I am thinking to go with him to the bank and have him pay it off, then getting the form that states there is no lien on the vehicle. Then doing up the bill of sale and putting insurance on it. But that is the ideal situation. What if he doesn't have the money to pay it off?
Thanks in advance. This is the most complicated car buying experience yet.
#2
Race Director
iTrader: (1)
I just bought my S5 that had a lien on it from Florida. I live in Ohio.
My bank literally did everything. My bank paid off his Audi Financial loan and then cut him a check for the remainder.
It was a PITA but only because my bank rep was a fucking moron. If you have anyone even remotely competent it shouldn't be an issue.
My bank literally did everything. My bank paid off his Audi Financial loan and then cut him a check for the remainder.
It was a PITA but only because my bank rep was a fucking moron. If you have anyone even remotely competent it shouldn't be an issue.
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justnspace (07-21-2016)
#4
Instructor
iTrader: (2)
^^ ditto
I went thru a credit union. They had me complete an intent to sell aka bill of sale that the buyer signed.
With the information on the bill of sale, the credit union sent me a check with seller and buyer names. seller and buyer endorse and seller deposits.
I met the buyer, completed the transaction and drove off with title and car.
I took extra precaution by drafting my own contract too; seller was more then willing to comply.
In your case, it'll be best to go to the sellers bank to pay it off, get the title, lien release and car. Like they said above, the frustrating part is getting an incompetent rep.
I went thru a credit union. They had me complete an intent to sell aka bill of sale that the buyer signed.
With the information on the bill of sale, the credit union sent me a check with seller and buyer names. seller and buyer endorse and seller deposits.
I met the buyer, completed the transaction and drove off with title and car.
I took extra precaution by drafting my own contract too; seller was more then willing to comply.
In your case, it'll be best to go to the sellers bank to pay it off, get the title, lien release and car. Like they said above, the frustrating part is getting an incompetent rep.
#5
Team Owner
yah what the others said if you are planning to finance it through a bank.
If you are planning to pay cash, the situation gets risky. In that case, i would ask him to pay for the car first, get the title and then you buy his car as you would normally. If he doesnt have the $ to pay it off, then what you makes you think he won't take your $ and disappear?
I know here in LA, some used car dealers provide a service (for a fee) as the 3rd party for the transaction, so both party feel safer. Not sure about Canada.
If you are planning to pay cash, the situation gets risky. In that case, i would ask him to pay for the car first, get the title and then you buy his car as you would normally. If he doesnt have the $ to pay it off, then what you makes you think he won't take your $ and disappear?
I know here in LA, some used car dealers provide a service (for a fee) as the 3rd party for the transaction, so both party feel safer. Not sure about Canada.
#6
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I did this and my bank was absolutely stupid about it. Then the sellers bank mailed him the title to send me in a plain unmarked envelope that got lost. Getting a new title was a pain with the state. The whole process before I had my vehicle legal to drive took about 5 weeks. Glad to hear for most people it was easy but for me it was a nightmare.
#7
Suzuka Master
Thread Starter
yah what the others said if you are planning to finance it through a bank.
If you are planning to pay cash, the situation gets risky. In that case, i would ask him to pay for the car first, get the title and then you buy his car as you would normally. If he doesnt have the $ to pay it off, then what you makes you think he won't take your $ and disappear?
I know here in LA, some used car dealers provide a service (for a fee) as the 3rd party for the transaction, so both party feel safer. Not sure about Canada.
If you are planning to pay cash, the situation gets risky. In that case, i would ask him to pay for the car first, get the title and then you buy his car as you would normally. If he doesnt have the $ to pay it off, then what you makes you think he won't take your $ and disappear?
I know here in LA, some used car dealers provide a service (for a fee) as the 3rd party for the transaction, so both party feel safer. Not sure about Canada.
I don't want to get stuck with a horrendous lien and some guy running away. The method I mentioned above is the least risky to me.
Thank you for all the input guys, I would be lost without your help.
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#9
Suzuka Master
Thread Starter
I did this and my bank was absolutely stupid about it. Then the sellers bank mailed him the title to send me in a plain unmarked envelope that got lost. Getting a new title was a pain with the state. The whole process before I had my vehicle legal to drive took about 5 weeks. Glad to hear for most people it was easy but for me it was a nightmare.
#10
Suzuka Master
Thread Starter
#11
Team Owner
^ also it depends on the year/mileage and etc... not all used car can be financed.
#12
Suzuka Master
Thread Starter
Ok so quick update:
The owner is going to be paying it off, getting the lien release form, and then I am going to buy it off him like I would a normal car with a bill of sale. All is good in my world, and I finally have an rdx replacement!
The owner is going to be paying it off, getting the lien release form, and then I am going to buy it off him like I would a normal car with a bill of sale. All is good in my world, and I finally have an rdx replacement!
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