Best Transaction Approach When Buying a Used Car (Private Party)?

K

Killjoy

Forum Member
Guys - It's been a long time since I've purchased a used vehicle through a private party (not a dealership). I'm looking at buying a 2016 model year vehicle worth $30k+. The vehicle's title currently has a lien. Obviously, to close the deal, I'm likely going to need to meet the sellers at their bank with the money so that they can payoff the loan, remove the lien, get a clear title, and then they sign it over to me... where I then go to the SoS to title/register it, etc. Right?

From the buyer perspective, what are the gotchya's? Should I be doing a cashier's check, certified check, wire transfer? I assume it's made out to the seller, not the bank c/o the seller? Once done and clear title signed over to me in hand, do they then drive the vehicle under their insurance to the SoS? Or I suppose I could assuming I get coverage on it while at the bank, and have the signed title in hand? Just trying to ensure I have my bases covered legally and documentation/process, etc. Esp since we're not talking a $5k car.
 
Anything other than cash in hand will likely cause a delay in transferring the title over, such as the banks clearing the transaction.
I could be wrong & it could be seamless resulting the ownership transfer to be instant. If anything, be sure to schedule with the seller's bank a date & time to execute the transaction in advance. Ask your bank which method is best when dealing with the transaction for a fast & secure purchase.

I would think a drafted document of some sort that you both agree too in advance could be a good thing.
 
+1 for calling his bank ahead of time and finding out what they need from you. Saved me so much headache. If you will be having a lien on your also start with their bank and call yours afterwards.


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When I did this the lady at Huntington told me it wasnt instant, and would take a few days. I was pissed. I pulled out the cash and said I wish I would have know before I walked around with X amount of cash on me. She had a shocked look on her face and said hang on. She was on the phone with someone asking if we could get all the paperwork transferred right then and there. I heard them ask her if the cash was all real and she said yes they verified it(made me laugh). So long story short is I was only able to do it because it was cash on my end(buyers end). That was my experience.
 
When i Sold my Silverado, it was for $38k. we called my bank before hand. Found out what they needed. Then he had his bank wire the money to my bank, we went in together they verified everything and paid the truck off and gave me the remaining money that was owed, then they signed off on the lein on the title, i signed my part. gave it to him and we wnt our seperate ways. He took the truck right then and went to SOS afterwards to transfer everything.
 
All good input - thanks. Yea, I'm paying cash - no lien on my end - but I really don't want to be walking around with $38k in my pocket. I'm also not sure my CU would even give me $38k in cash if I just showed up, and if they did, guessing I'd be put on some Fed watch list. I'll call their bank in bit.

So if there's a lien on the existing title now, does the bank simply signoff on that title that it's clear, or does the SoS need to issue a new clear title before they can transfer it to me?
 
Update - sounds like carrying cash from one bank to the other is the only option that doesn't have a multi-day hold.
 
Killjoy said:
Update - sounds like carrying cash from one bank to the other is the only option that doesn't have a multi-day hold.
Click to expand...


You'd want to arrange at least 7 to 10 business days with your bank to have ready the day of/before prior to meeting at there bank. Also, not just anyone at there bank can sign-off on the lien. I am almost certain it has to be someone from management, not a clerk. It is best that you contact there bank beforehand to make sure everything is as it should be. There bank may even have the ability to hold your cash in a safety deposit box as a safeguard? Might want to inquire within.
 
1BADAIR said:
Then the fbi checks up on ya
Click to expand...

Not a big deal, have done it countless times.

What most people think is if you take out $10,000
in cash the bank has to report it to the fed. The fact
is any amount the bank finds "suspicious", ie; $3,000
or $4,000 can and is reported as well.

Likewise, any large check is reported too. You're
being watched and tracked more that you would think - and
I'm not talking about tin-foil hat stuff here.
 
4Gas$ said:
Not a big deal, have done it countless times.

What most people think is if you take out $10,000
in cash the bank has to report it to the fed. The fact
is any amount the bank finds "suspicious", ie; $3,000
or $4,000 can and is reported as well.

Likewise, any large check is reported too. You're
being watched and tracked more that you would think - and
I'm not talking about tin-foil hat stuff here.
Click to expand...


spoooooky :)
 
4Gas$ said:
Not a big deal, have done it countless times.

What most people think is if you take out $10,000
in cash the bank has to report it to the fed. The fact
is any amount the bank finds "suspicious", ie; $3,000
or $4,000 can and is reported as well.

Likewise, any large check is reported too. You're
being watched and tracked more that you would think - and
I'm not talking about tin-foil hat stuff here.
Click to expand...

When I was moving money around a few years back I had asked the bank I was moving money to about it. I asked if I should do multiple $9,000 transactions or just do one transaction. They told me multiple 9,000 transactions over a short period of time would look just as suspicious, if not more then just one large one.
 
also, if you pay off the lien on the car that day, they mail the release of lien letter from the "main branch" or some BS like that. So you might not get the release of lien letter that day, it might take a week.
during that week, make sure you have insurance on that vehicle in case something happens.
 
Interesting. So will the SoS require that Release of Lien letter in order for me to transfer the title? I spoke to their bank and they appeared to indicate they could just signoff on the lien on the back of the title and that would suffice for the SoS.

Edit - Per the SoS website, it looks like either will work:
Check if any liens (such as bank loans) against the vehicle that are noted on the title. If there is a lien, it must be released by the lienholder in the appropriate signature space. You also may attach a lien termination statement from the financial institution to the title.
 
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When I had banks sign off on a lien on a title, they just signed the title in that section and I was all set. I've had to do that on 3 different vehicles with loans from 3 different banks (at 3 different times). That was all I ever needed though. Just took it to SOS to get me a clean title issued. It did have to be a bank manager in all cases though.
 
I was issued a separate document from the bank releasing the title over to me. At the SoS, the clerk prompted me for proof of cleared title. It saved me the trouble by already having that piece of paper on hand. I wouldn't leave the bank without it if I were you.
 
Beigg said:
I was issued a separate document from the bank releasing the title over to me. At the SoS, the clerk prompted me for proof of cleared title. It saved me the trouble by already having that piece of paper on hand. I wouldn't leave the bank without it if I were you.
Click to expand...

Ditto
 
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