Private sale with a lien?

[BMWTurboDzl]

In KY the lienholder doesn’t hold the title, the car possessor does, but the lien holder is listed on the face. To transfer the title the buyer would need the seller to sign it and have it notarized. The buyer would need the payoff letter from the lender to have the title cleared by the county clerk, or would need the seller to do that for them. So I guess I’ve ended up answering my own question in a roundabout way. I would only do it if I could have a copy of the payoff letter at the time of transfer.

In GA if there's a lien the title is kept on file with the state. I suppose you could order a copy.

Transfer doesn't require a notary but it is required for the Bill Of Sale.

All state's have their own way of doing things.

 

[2strokeNorthstar]

It can be a PITA. I got my son a motorcycle with a lein on the title. The people were nice and thought it was paid off, just needed to apply for a new title. It was not that easy. Lucky for us they kept in contact but it took almost 2 years before I finally got the title in my name. If it was something used on the street I wouldn't give any money until I got proof it was paid off.

 

[football]

I would walk away unless it was a very good deal and a car I really wanted. Then it might make the hassle worth it. I would be on the phone with the lien holder asking for the payoff amount. I would also pay the lien holder directly! So if the car was $10,000, with an $8000 lien, I would pay $8000 to the bank directly and $2000 to the seller. With a very good bill of sale that spells out everything in detail.

 

[Jason2007]

I've sold two cars in the last three years that had liens on it and it was very simple. The day they purchased it, I had them meet me at my Credit Union and I paid it off immediately. They got a bill of sale that day and drove off and I mailed them the title when the bank mailed it to me.

 

[atikovi]

I've sold two cars in the last three years that had liens on it and it was very simple. The day they purchased it, I had them meet me at my Credit Union and I paid it off immediately. They got a bill of sale that day and drove off and I mailed them the title when the bank mailed it to me.

That's how it SHOULD work, but the worry here, is what if they want to be jerk and don't.

 

[hrv]

How does one safely buy a used car in a private sale when it still has a lien? I assume the debt follows the vehicle and not the guy who incurred it, so how do you make sure it’s paid off before you give them the money? I can see this being a sticking point because the seller probably doesn’t have the funds to pay it off until he gets your money? Is their a standard way of handling a sale like this?

I’m sorry if this is a noob question but it’s not a situation I’ve ever been in.

Two things I will not do is private sale with a lien and a car with a salvage title....

 

[KrisZ]

Unless the vehicle is some hard to come by unicorn, the best solution is to keep on walking. People sure love to complicate their lives.