How do you purchase a vehicle with a lien on it and ensure you receive the title from

[bybcous]

The seller? I have never did this type of deal before I was interested in a car from Ny. The owner still has a loan on the car from the bank. If I were to pay off his bank and receive a bill of sale, when the bank sends him the title how do I ensure he sends the title to me? How do I register the car until I receive the title? I basically want to know how this process goes so I can protect myself I make this choice.

[Chewy]

The way I did it was I paid off his loan and gave him the remaining money that the car was worth. The bank then requested the title which then had to be sent to the IA DOT and then sent to him. I had him sign a bill of sale and I took immediate possession of the vehicle which sat in my garage until I had all the paperwork. It took a couple of weeks and he called me up and I picked it up and put it in my name.

I wrote up a LONG bill of sale that he agreed to sign. It had verbiage in the case of his or my death and everything.

This was all done in town so it was a little easier. When I sold my GT to a guy in Jersey, I documented everything and he did the same and we signed bill of sales and intents and so on. He sent me a check, I deposited it, it cleared, he had the car picked up, and I sent the title via fedex 2nd day. I DID have the title in hand though.

Trust your instincts. If you have a bad feeling, DON'T DO IT! I got lucky and had two great guys to deal with.

I'd be happy to share my bill of sale with you if you'd like. I wrote it myself so it's not like it's ironclad.

Chris

[bybcous]

Yes please I would appreciate that.

[Modhauler]

When I bought Matilda, I sent him a bill of sale to fill out (from credit union) which we both had to sign. The car was in another state and had a lien still on it. The credit union made out 2 checks, one for the pay off and one for the balance. To get the title with the lien release signed on it, I sent the payoff check and the balance was paid later after I got the title. Communication is the key. Good luck.

[Greg@PacePerformance]

When I sold my Trailblazer SS I had to pay it off and get the title in hand before the other guys bank would give him any money. My loan was through Ally/GM, the guys bank said they have had too many titles get sent to the previous owner that held the loan after it was paid off.

I borrowed cash from a good friend for a week to get it done.