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

[The motor guy]

So if I pay the 15k with a cashiers check. That's what I agreed to pay for the atv. Can his bank put it right into my name like they said? I'm trying to figure out what other things I would have to pay for in this transaction. I'm expecting to have to pay sales tax and a title fee, but the way he explained it it sounds like the bank can just put the title in my name since it isn't in anyones name. Can I pay whatever other fees at his bank with a regular check?

 

[wag123]

So if I pay the 15k with a cashiers check. That's what I agreed to pay for the atv. Can his bank put it right into my name like they said? I'm trying to figure out what other things I would have to pay for in this transaction. I'm expecting to have to pay sales tax and a title fee, but the way he explained it it sounds like the bank can just put the title in my name since it isn't in anyones name. Can I pay whatever other fees at his bank with a regular check?

I don't know who you are talking to at the bank, but they don't know exactly/precisely what they are talking about.
Yes, it has been titled, but in Texas it is an E-Title, this is where the bank employee is confused. There is always an E-Title issued whenever there is a lien. Texas will only print a paper title when there isn't a lien on it, or AFTER the lien has been released by the lender. When a vehicle is sold new, there is an MSO (a kind of paper title issued by the manufacturer) that must be surrendered to the state when it is sold. An E-Title or paper title will only be issued after the MSO is surrendered. The E-Title is in the current owner's name showing the bank as lienholder.
Yes, the bank can and will put it in your name, and if (as in your case) there is not going to be a lien on the title, the state will print a paper title and mail it to you. Yes, both you and the seller (as well as the lender) will need to sign paperwork at the bank (including a 130-U title transfer form) in order for this to happen.
Yes, you WILL need to pay the 6.25% sales tax. Sales tax is collected any time a vehicle (or anything else with a title) changes hands.

 

[JTK]

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.

Like suggested, unless this individual can provide you with the title and an official lien release letter for the vehicle, you'll need to go to what ever bank or credit union his/her loan is through to verify what the payoff amount is and if there is any other liens against it. I know at least in NY, you can have and work with the old title with a lien(s) on it as long as it's accompanied by an appropriate lien release letter from the bank(s).

I would trust no one other than the numbers and facts. Even family may not have the facts straight.

I also would never get involved with or try to sell a vehicle private sale that still had a lien on it.

In terms of dealer transactions, I've done it dozens of times.

 

[The motor guy]

The bank took care of all the forms for me so I'm happy. Got a bill of sale etc. Just have to wait a couple weeks for the title to come in.

 

[The motor guy]

I don't know who you are talking to at the bank, but they don't know exactly/precisely what they are talking about.
Yes, it has been titled, but in Texas it is an E-Title, this is where the bank employee is confused. There is always an E-Title issued whenever there is a lien. Texas will only print a paper title when there isn't a lien on it, or AFTER the lien has been released by the lender. When a vehicle is sold new, there is an MSO (a kind of paper title issued by the manufacturer) that must be surrendered to the state when it is sold. An E-Title or paper title will only be issued after the MSO is surrendered. The E-Title is in the current owner's name showing the bank as lienholder.
Yes, the bank can and will put it in your name, and if (as in your case) there is not going to be a lien on the title, the state will print a paper title and mail it to you. Yes, both you and the seller (as well as the lender) will need to sign paperwork at the bank (including a 130-U title transfer form) in order for this to happen.
Yes, you WILL need to pay the 6.25% sales tax. Sales tax is collected any time a vehicle (or anything else with a title) changes hands.

The bank did all this. They made it really easy.