Buying used car that is financed
 

Has anyone done this in a non-local market?

I paid a deposit for a car that I won on ebay. It is 800 miles from where I live. My intention was to fly down, pay for it, and drive back, just like I had on my last 2 cars. The owner of the car popped a new one on me last night- he does not own the car, the bank does, he has it financed.

I am thinking that it wouldn't be a problem in 99.9% of the cases to just get the title in the mail after the car is paid off, but what about the other 0.1% where someone sells something they love when they are desperate for money, then used it to pay off another loan, or just never pays the bank back.

The bank would come after me for their property- and rightfully so.

Can this kind of transaction be done on a Saturday, like any other car deal, or am I in for a mess of paperwork? I tried calling the guy to see if I can pay off the bank directly, but he hasn't called back yet.

Anyone deal with this before? Please advise

This shouldn't be a problem. Get his loan #, bank, and payoff amount and cut two checks -- one to the bank (for the payoff amount) and the balance to the seller. You definitely don't want to give the seller the entire amount and take it on faith that he'll pay the bank. And there is no reason for him to balk at you paying the bank directly unless he is trying to pull a fast one on you. Good luck.

If possible, do the transaction at the bank itself. They'll have a notary on site who can notarize the bill of sale and release the lien w/ your check.

If it's a "local" bank, they'll most likely have title on site too. If so, and you have certified or wired them funds directly for what's owed, they can notarize the title too then hand it over to you there. As long as you have a t-plate and proof of ins, you're good to go. Good luck and congrats!

All the bank has to do is sign the release section of the title. You take that with you.

Do it in person and don't give the seller a penny until the bank title is released to you.

Buyer Beware.

Look at Mike Focke's write up, there is a section where he talk about "buying a car with a lien on it" Below is the link. Good Luck!

http://mike.focke.googlepages.com/buyingcontinued

I sold a car I had financed over craigslist. Only difference is I didn't require an initial deposit. The guy flew in on Saturday and we drove to my bank where the title was waiting. Tell the seller to give his bank a notice about a week ahead of time that he will be selling it so they can order the title, pretty sure most banks don't have them on hand. The guy wired in money ( To the bank. Not my account) that day and they released the title to him on the spot.

If you plan on wiring talk to your bank and his to see what the turn around time is for the funds to actually hit. His bank and mine just happen to be affiliated so there was no delay.

Hope that helps.