Opinions on Buying a Car with a Lien out of state

[wakeupluis]

So I have made a deal with a Gentleman on a Gen V in a different state. He has a lien on it with a credit union. I do not know him personally. I have never purchased a car out of state with a lien on it. He says I can pay off his lien and pay him the difference when I pick up the car. Which is ok with me but again, I do not know this individual. I called the credit union, They gave me the wiring info on the loan. But they will mail the title to him. Then He will have to sign it over to me. Anything he can sign to have the title sent to me? Just want the transaction to be safe for me. Any opinions are welcome. What is the safest way for this transaction to happen? Thanks Luis.... by the way I am in Houston and the car is in Indiana

[EvilWon]

What I have done in the past as a seller is to notify my credit union that I am selling the car and the date the buy will be coming in on. I have them pull the title and have it ready as soon as the wire is complete. Once the wire transfer is done then I hand him the title.

I don't know if you could get this level of service with a larger bank since they may send the title off but it's worth asking.

[wakeupluis]

thanks for the reply. Another Roadblock. The credit union is 4hrs away from his house and the Cars location

[nrs1]

Look into Power of Attorney documents. In AZ, when a lien is involved, I have the selling party sign a Power of Attorney document (needs to be notarized) and a Bill of Sale (notarized also) for the title, when I hand over the money. This gives me the authorization to apply for a new title, without having to have the paid title signed over. You still have to wait until the lien is cleared, but typically they do that electronically and it should clear within a day or so. State laws probably vary, but you need to do something like this to avoid any scams and peace of mind. Call the state's DMV where it is titled. They will have suggestions on how to purchase a vehicle with a lien on it to be safe.

Are you meeting the buyer face to face with the payment? If not, and he wants you to just mail a payment in to the credit union, seems like there is room to get scammed. That's why the Power of Attorney is signed/notarized at the bank/credit union, when the funds change hands. Without that, you are at the mercy of the "honest seller"? "The titles's in the mail"

[AZTVR]

I have always met the buyer at the bank/credit union that is holding the title and have the bank representative receive my payment and have them notarize the assignment of title to me and then they give a check for the difference to the seller. If I can not do that process, then I do not attempt to buy the car. There are so many things that can go wrong if this is not done in person.

[VenomSnake]

I have always met the buyer at the bank/credit union that is holding the title and have the bank representative receive my payment and have them notarize the assignment of title to me and then they give a check for the difference to the seller. If I can not do that process, then I do not attempt to buy the car. There are so many things that can go wrong if this is not done in person.

Yep, That's the best way to do it. Lots of scammers out there and when spending this much dough I wouldn't take a chance.

[theviper]

IMO, who owns a Viper and doesn't have the funds to pay off the loan? Even if it is a stretch for the individual, it's only for a few days. In any case, if you are coming from TX, he can't drive 4 hours to the credit union with you and meet you there? Seems like that's the least he can do. What kind of Viper is it?

[The_Ruski_Driver]

IMO, who owns a Viper and doesn't have the funds to pay off the loan? Even if it is a stretch for the individual, it's only for a few days. In any case, if you are coming from TX, he can't drive 4 hours to the credit union with you and meet you there? Seems like that's the least he can do. What kind of Viper is it?

Most people. Why pash cash for a depreciating asset when you can finance it at 2% and spend 80k investing into something, anything, that will yield better results than -X%?

Then to pay it off, you're suggesting they have this 80k liquid "sitting" around, which I would consider a total waste of money.

[theviper]

Most people. Why pash cash for a depreciating asset when you can finance it at 2% and spend 80k investing into something, anything, that will yield better results than -X%?

Then to pay it off, you're suggesting they have this 80k liquid "sitting" around, which I would consider a total waste of money.

Ruski, thanks for the financial advice (which is correct), but that's not what I asked. My question was who owns a Viper and doesn't have the funds to pay off the loan for a few days (on top of that the seller didn't want to meet at the bank initially). The seller wanted the buyer to pay off the loan sight unseen from TX, either because the seller was in over their head or because it was shady.

In either case, it doesn't matter because the buyer will be doing the right thing and doing the transaction at the bank.

[wakeupluis]

Ok we have decided. We are meeting at the bank. So all transactions will occur there! Thanks for all the suggestions! I'm going to open an account and transfer my $$to myself. Then we can do all transactions there! Hopefully I will be posting some great pics soon!

[nrs1]

That's good. Check with your DMV in Tx to see what documentation you will require to register/title the car in your name. If you can't get a cleared title on the day of the transaction, then you will need some other kind of other official documents (notarized, bank will be able to do this), depending on the TX DMV requirements, to become the legal owner. At minimum, get a notarized Bill of Sale. Some states can't clear a title immediately if there is a lien on it, in those cases you will need something else (AZ has the Power of Attorney for title assignment), before you leave the meeting. You certainly don't want this hung up with a title assignment hiccup, across state lines.

[wakeupluis]

Thank you nrs1! Very good points!

[Uranium235]

With respect to paying it off for a few days until the buyer shows up with the cash:
1. It's typically more than a few days when dealing with a bank. I'd say a week or two.
2. What happens if the buyer bails?

[theviper]

With respect to paying it off for a few days until the buyer shows up with the cash:
1. It's typically more than a few days when dealing with a bank. I'd say a week or two.
2. What happens if the buyer bails?

All true. These reasons, and many more, are why private party sales are more challenging. I've used a dealer as a paperwork intermediary and paid them something for their time. Everyone wins then.

[wakeupluis]

All true. These reasons, and many more, are why private party sales are more challenging. I've used a dealer as a paperwork intermediary and paid them something for their time. Everyone wins then.

This actually seems like a very good idea. He called his bank. We are supposed to all meet there..and they are supposed to have the title in hand.