Need car purchase advice asap!!!

M

maxmk8

Registered
Hey there. I was out looking for a new car for my dad all weekend. After being hassled by dealers all day Saturday. I went out to check out another car listed by a private owner. The guy seemed very knowledgeable about the car, original owner had all records etc. He is pretty wealthy having a 1mil+ dollar house a Zo6 Vette an M3 and a Lexus LX470.
He has not lied about a single thing about the car and pointed out all the flaws without me even checked them out first like the car needing brakes and a small scratch. Car is still under powertrain warranty so it is a good thing. I drove the car and all went well. Now to get to the point. When it came to me making an offer on the car, he told me that we both need to go to the DMV so that we can "sign the power of attorney" for the car since he is still making payments on it. He told me then his bank will send the title to me (after the sell at the DMV). The vehicle is an 03, so I am not rather surprised. But I am paying the entire vehicle in full so I want to make sure that I don't assume any of his liabilities (anything that he still owes).
I know I might be just paranoid. But we're talkin close to 20k here and I want to make sure everything goes smooth. Do you guys have any advise for me in terms of buying cars from individuals that still owe money on them??
 
RE: Need car purchase advice asap!!!

yes. it's fine. You buy the car from him. he pais it off with your money, and the lein holder submits the title to the DMV. they will issue a new title.

its very common, as many people sell cars way before the loan term is over(paid off).

Imagine buying a car, taking out a 48 month loan, and after a year and a half, you want a newer model. You know the dealer will screw you on a trade in price, so you are forced to sell PRIVATE. The only way that can happen, is if it was possible to sell a car you technically didnt own outright.

very common Max...just get copies of his loan/account number, name and phone number of his lein holder, and you should be covered.

then, call his loan company and tell them about your intention to buy. They may even offer you a loan(if needed).

But rest assure, it is common, possible, and very easy.
 
RE: Need car purchase advice asap!!!

Thanks for the reply craig. I am just scarred that I will pay 18k for a car that is not his... thereafter he chooses not to pay of the loan but use the money for something else. So the bank will choose to repo the car or never send me a title. I know these things must be common, I just want to make sure I have all the info I need. Usually i bought all my cars from dealers or with titles on hand.
 
RE: Need car purchase advice asap!!!

If you're that nervous have him call the lien holder and get the exact payoff amount on the phone with you listeningn in, or have him give them permission to tell you. Now you make out two checks, one certified to the lien holder and the balance of the purchase price to the seller. You then take fill out all forms with him and put it all in the envelope (Express Mail is best since it is traceable) and you mail it.
 
RE: Need car purchase advice asap!!!

Who cares about the loan thing, what car are you buying, you gave us three? I know sometimes people assume a loan or leas, but I never done a transaction like you are doing. Asking him if you can submit one check to the lean holder and the balance to him is a good idea.
 
RE: Need car purchase advice asap!!!

It is not a car for me, I am helping my dad with his purchase. The car is an 03 Grand Cherokee Limited with free scheduled maintenance until 70k miles or 09 and the powertrain warranty until 70k or 09. I had a lot of headaches at the DMV yesterday. They can't do a title transfer unless the car is paid off, or is signed off by the bank (since they are the actual owner). In this case Chrysler financial services won't let me pay off the car (17,253.43) and give me the title, and the guy doesn't have that much cash. So he is borrowing money... and paying it off this week, and hopefully he will get documentation of the car beeing his this week as well. I will have to wait and see what happens next.
 
RE: Need car purchase advice asap!!!

Why wont Chrysler let you pay off the loan? I mean it doesnt matter where the money comes from. You should be able to send a bank check to them for the buy off amount at which time they would send a letter of lien release to the owner. Once he gets the lien release from them, you can go with him to DMV and fill out all the paper work.
 
RE: Need car purchase advice asap!!!

Yes, but this would mean that I would face increased vulnerability to a fraud. If I pay off the car without having an ownership transfer, i am basically loaning the guy money for his car. I would need to notarize a statement from me and him saying that I am paying the loan in order to purchase the car. I can’t trust a stranger with my 18k, no matter what.
 
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