Buying a car that is still owed upon. Help. ;)
 

Ok.. well I'm looking at a car. The seller is a friend of mine and is gonna give me it for $12,500. He owes $14,500 still on the car but has the difference. Now say I buy this car from him cash. How do I get the title? He said I'll just have to keep it under his insurance/name until the title comes in from the bank. Now I'm fine with this. But my mom doesnt like the idea. And its her cash and she doesnt know the guy. So I know things like this have happened before. And I know some of the knowledge on HMT will be able to help me out. So how does one go about changing a title to a new buyer that the original car owner does not have??

Thanks :)

Re:Buying a car that is still owed upon. Help. ;)
 

Be careful. A friend of mine got fucked over on a deal like that. The guy never paid the car off and he never got a title. He ended up stripping the car and leaving it in an alley. They eventually came and got it. He didn't mind that much since it was a cheap car, but since this is $12,500 we're talking about, be very careful.

I would have a bill of sale written with EVERY detail. If possible, go to the bank with him to pay the owed amount on the vehicle. Don't ever let him have the cash. Just hand it over to the bank.
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Re:Buying a car that is still owed upon. Help. ;)
 

There should be no reason you cant go to the bank with him and get a bill of sale from them. If he wont do that get away from this deal, dont walk, RUN!
You can take the bill of sale to the DMV and get temp tags and get your own insurance the same day. When the title comes in, you get it in your name and you are done. I dont know if this works in every state but thats how we do it in VA.

Re:Buying a car that is still owed upon. Help. ;)
 

Thanks for your help. Thats exactly what were doing. :)

Re:Buying a car that is still owed upon. Help. ;)
 

Yes just make sure the bank gives you the title that day, full payment will be due... So once its urs, good luck, does he have 14k laying around? or u 12,500? or is he/you taking out a loan to pay it off, hows this working?

Re:Buying a car that is still owed upon. Help. ;)
 

^he's getting the cash from his mom^

And I say go to the bank with him. Have a Bill of Sale all filled out from the car owner selling to you, just in case, do this before you go to the bank, so he can't dick you with the title once you hand over the cash to the bank. Dicking you as in, you passed on the cash, and he dashs without signing the title over to you. So make sure a bill of sale is filled out. Also I think a hand written reciept is good too. This is 12.5k, take every precaution, may seem like a lot, and if he don't wanna do it, he probably wanted to rip you.

Re:Buying a car that is still owed upon. Help. ;)
 

Most banks will mail the title to the location of pay off if you tell them in advance. I did this a few times so I know. So tell your buddy to call the bank and have them ship the title to the closest branch so he can pay it off right there and you can get the title.