mistuh_fu

Not sure if this is the right section, my apologies if it isn't.

So a week ago I set a deal in motion for a 05 TL; everything checks out just fine. Aesthetically the car is great, carfax is clean. Took the car to a mechanic two days ago and everything is fine so the seller and I start the paper work.

The situation is that the current owner still owes a little more than $15,600 on the car, and he wants me to make a check out to Toyota Financial, along with his check to cover the difference, thus paying off the car. Toyota Financial will then sign their name off on the title and send it to me.

Now that part is easy enough, but as long as the seller does not sign the title releasing his interest, I am not the legal owner, correct? What type of paperwork prevents, say the owner turns and now he has a paid off car and I'm stuck driving a "stolen" car? Does the Bill of Sale or Notice of Transfer and Release of Liability forms do anything in this situation?

I'm located in CA by the way, if that makes a difference.

Silver_Surfer

I would contact your current car insurance agent if you have one. You do not want a mess on your hands. The amount you are dealing with ain't chump change.

drdamian

i had a similar situation when i sold my car.. i owed a little more than 11K. i went to the bank and paid the car off myself but i took a deposit from the buyer. this at least gave me a sense that i wasn't going to be stuck with the car if the deal fell through. after i paid it off, i got he title in the mail and signed it over.

MR1

Check CA DMV website. At the least I would get upfront notarized letter from seller stating the transfer and all of the points including his release. If you don't understand, find someone @ DMV or elsewhere that explains to your satisfaction. Also determine who has the car and financial responsibility while waiting for paperwork to process. Yes, you also need to talk to your insurance agent. Have everything in writing signed by both parties. Good luck with your purchase.

mistuh_fu

Thanks for the help guys, I thought this thread was doomed from the start

I could potentially have a five figure mess on my hands if things don't pan out

A deposit and a notarized letter seems like the best way to go, that way we both have guarantees that we won't swindle each other. If it were a bank this situation wouldn't be as complicated, but the fact that the finance company is in Arizona just makes this that much worse.

Would an insurance agent know more about this kind of situation? It would seem to be my only hope, considering the lines at the DMV are really unbearable. I think having everything written and signed would be a good place to start, but this situation has gotten so complicated I'm thinking of just letting it go.

Zippee

Ask the folks at Toyota Financial, they deal with this every day.

mistuh_fu

Actually I called their customer service line and because it was an Acura, they didn't know how to deal with it, and their corporate line requires a tax return number. I'm actually thinking about going to the dealer and have them serve as a connection to Toyota Financial if the seller can't figure it out, not sure if that's going to do anything though.

Will Y.

If you're an Auto Club member, just call/visit a AAA-- it'll help w/everything.

Shoofin

Simple....

Take the title from the guy, Send the payoff to Toyota for the amount that is owed and put a letter/note in it saying you are the new owner of the vehicle and you request all correspondence to be sent to you instead of him. Once you get the lien release, you can register the car under your name. That's it.

mistuh_fu

According to the owner, Toyota Financial holds the actual Certificate of Title. I'll have to look more into that; I know that once we mail the checks out they will send the Title to me, not the seller, but if I recall correctly, I also need the seller's signature in order to register the car under my name.

vas25tl

Is CA a title holding state?

S14 n Tsx

They won't send the title to you until you fill out the lien release paper and take that to DMV.

I was exact same situation as you, but I was the seller.

Quickest and fastest way to do this is for him to pay off remaining amount. Once he pays everything off, they will send him a lien release paper where he has to sign it, once he does that you fill out the rest of the lien release paper (new owner section), and you just take the that to DMV then you are all set.

Just tell the seller that you are serious buyer and willing to make some sort of deposit to show him that you are buy his car.

MR1

Insurance agent can at least tell you at what point they will insure the car for you. On DMV website you get lots of info + you can make an appointment if necessary. If it's not worth it to do the work, look for another car. Better to find out right way upfront than to end up screwed imho. The other possibility is to contact his lender (lienholder) to find out how to do it.

Gfaze

No title until loan is paid in full.

Shoofin

When you lease a car, the title is held by the bank.

When you own or finance a car, the title is held by the owner, and the Lien is held by the bank. That's how it is, at least in NY.

The only signature you might need from the owner would be for the bill of sale and the back of the title where he's signing it off to you. The actual registration documents only have your signature needed on it. Although I'm basing this one the states that I know, which is the tri-state area to me.

mistuh_fu

I'm thinking this is the best possible solution to this problem; I'll just need cooperation on the sellers part. He seems pretty eager to sell the car but I'm not sure he's willing to go through this process.

I emailed him a couple days ago and he said he didn't know he had to sign the Certificate of Title

Yea, that's the NY procedure. California seems to take pride in making things a little more complicated.