How do I buy a vehicle that the owner still owes money on?

[The motor guy]

The seller acts like he's just going to send me down to the bank and pay off his loan...

Anyways. How do you do this? In this case it's a side by side atv i'm buying for $15k. Gonna pay cash. My question is how do I get the title transferred into my name? I'm in Texas so they title these things here as dumb as it is.

 

[The motor guy]

Do I do a bill of sale with the seller and then get the title from him when it comes in the mail?

 

[kschachn]

Buying a Car With a Lien: How To Purchase a Used Vehicle From a Private Seller

Find out how to buy a used car or how to sell a car that still has a loan balance due.

www.gobankingrates.com

How to Sell a Car With a Loan

Selling a car can be complicated if there's still money owed on the loan, but it's manageable once you know the process.

www.carfax.com

How To Purchase A Financed Vehicle From A Private Seller

www.swapmotors.com

How to Sell Your Car When You Still Have a Loan - NerdWallet

It’s not difficult to sell a car when you still have a loan on it — but may take a little longer. NerdWallet will walk you through the necessary steps.

www.nerdwallet.com

 

[pcf]

Escrow, the first place to check is with the lien holder, they might do it for no charge since they have an interest in not getting caught up in BS. You might pay more in fees but can avoid the hassle of this guy refusing to hand over a title after you pay the loan or pocketing the money instead of paying off the loan.

 

[The motor guy]

Escrow, the first place to check is with the lien holder, they might do it for no charge since they have an interest in not getting caught up in BS. You might pay more in fees but can avoid the hassle of this guy refusing to hand over a title after you pay the loan or pocketing the money instead of paying off the loan.

So the bank is probably the best place to ask since they do this kind of thing regularly right?

 

[JeffKeryk]

Absolutely check with the lein holder. Make sure the seller is on the up and up.
Pay with a certified check; something with an audit trail.

Good luck.

 

[ZZman]

You go with them to the bank. Pay off loan. Get title Lein holder signed off by bank.

 

[SatinSilver]

How much is the balance, 15k?

 

[BMWTurboDzl]

So the bank is probably the best place to ask since they do this kind of thing regularly right?

No they don't necessarily do this kind of thing regularly.

What you need is a Bill of Sale (signed by you and the owner*** of the vehicle) and ideally a copy of the payoff cashiers check with you as the remitter and the loan number written to the lender. FYI..You must confirm that the seller is the owner of the vehicle.

You won't get the title right away, but you'll have the Bill of Sale and most importantly the vehicle. Once the title comes in the seller will sign it to relinquish his ownership and then mail it to you. I've sold a car this way.

About 3 years ago I had a prospective buyer want to go through an escrow company on another car. She was a big wig attorney and want to review my loan documents for "pre-paids" and all other sorts of bull-excrement. I ultimately told her son that I was no longer going to sell the vehicle.

*** Very important. Confirm the seller is the owner.

 

[wag123]

In Texas we have E-Titles (electronic titles) on all vehicles that have a lien, in other words, the seller does not have the title in his possession, neither does the lender. Go to the lender, they will handle the transaction. The seller will need to go with you so he/she can sign some documents. The state will only print a paper title and sent to you if you pay cash for the vehicle (no lien). Your name will be on the title when you receive it.

 

[pcf]

So the bank is probably the best place to ask since they do this kind of thing regularly right?

It’s a place to ask. If there’s anyone that will do it on the up and up at no cost, it will be them. The last time I used an escrow service on a car it was $50 + .5%, plus title insurance. On $11k it was $160ish. I didn’t shop that out, first place I checked was good enough on price. Under no circumstances should you trust the seller to pay off the loan or relinquish the title.

 

[hemitom]

You go with them to the bank. Pay off loan. Get title Lein holder signed off by bank.

This is what i have done in the past ! easy to do, you know it has been paid off....

 

[Pew]

What you need is a Bill of Sale (signed by you and the owner*** of the vehicle) and ideally a copy of the payoff cashiers check with you as the remitter and the loan number written to the lender. FYI..You must confirm that the seller is the owner of the vehicle.

You won't get the title right away, but you'll have the Bill of Sale and most importantly the vehicle. Once the title comes in the seller will sign it to relinquish his ownership and then mail it to you. I've sold a car this way.

This is exactly what I did to sell my previous car that had a lien on it. The title came in a few days after the lien was paid and I mailed it to the new owner. The new owner was cool with that too so that made the process very smooth and headache-less.

 

[earthbound]

BMW TURBODZL...this process is the most likely...unless it's bank owned and you go down with seller, and pay cash/cert check to satisfy the loan..keep in mind unless worked out with seller you'll pay the daily interest rate charge and any other applicable fees...

 

[totegoat]

What brand, year and model SxS? I'm having a hard time picturing a used one worth $15K........I've owned 'em.

 

[derweed]

What brand, year and model SxS? I'm having a hard time picturing a used one worth $15K........I've owned 'em.

In my area, most used ones are15K or more unless it has a bunch of miles or is 8 to 10 years old. I have see some listed recently for close to 20K. I commented to my wife the other day that used side X sides seem to cost more than used Jeep Wranglers. Crazy.

 

[eljefino]

So first off how does your state do titles and register side by sides?

Secondly, who's the bank? It could be something the ATV dealer uses that doesn't have a physical presence.

Thirdly, do not, do not, do not give the seller money with some sort of contract that promises a title further on down the road. The bank needs to have representation at the deal table. You can give the BANK the money if they have a way, like a title application from the state, or a lien release, of showing you that when a title is printed, you'll be getting it.

 

[The motor guy]

In my area, most used ones are15K or more unless it has a bunch of miles or is 8 to 10 years old. I have see some listed recently for close to 20K. I commented to my wife the other day that used side X sides seem to cost more than used Jeep Wranglers. Crazy.

Yeah they want like 25k plus whatever interest charged and fees if you finance. It ends up being like $28k after all said and done. The dealers don't have any in stock and you have to pre order them and they won't budge on the price.

 

[The motor guy]

In Texas we have E-Titles (electronic titles) on all vehicles that have a lien, in other words, the seller does not have the title in his possession, neither does the lender. Go to the lender, they will handle the transaction. The seller will need to go with you so he/she can sign some documents. The state will only print a paper title and sent to you if you pay cash for the vehicle (no lien). Your name will be on the title when you receive it.

The seller called his bank and they said since it hasn't been titled because he bought it brand new they could just put it right in my name. They just have some paperwork to sign for both the seller and me. I wonder if that means i don't have to pay the sales tax since it's integrated into the loan. The seller.has been paying it.

 

[The motor guy]

What brand, year and model SxS? I'm having a hard time picturing a used one worth $15K........I've owned 'em.

Probably depends on when you bought it. Post covid everything is inflated, but I assure you this guy probably has 28k into this machine and it has upgraded tires and upgraded stereo. He said he only took it mudding three times and I assure you it looks that way. Other than that he's just used it to drive around town. He lives in the sticks. Supposedly They don't care out there.