another RIPOFF prius

But if you have a loan outstanding on the car how else would you sell it but to
give the buyer the car, ask for payment and pay off the loan. you would then get
the title from the loaner to then sign over to the buyer.

I would assume the buyer would get a written contract signed by both parties and
a witness, a receipt of payment, and possession of the car...

maybe i am clueless about such things. i have always sold my old cars and had the title.

 

I agree with the above statement, if you still owe on the car, obviously you don't have the title in your possession and you have no choice but to do things this way. Selling a car like this is a real pain in the A** for both the buyer and the seller. This is one major reason why I ended up just trading in my VUE to the Toyota dealer, so I would not have to deal with this issue.

As a buyer, I would be working with the seller to contact the finance company holding the title and make sure they are aware that the car is being paid off, and the title should then be mailed to the new owner and then something can be worked out in getting everything signed over properly. Actually a really good way to do this, is for the buyer and the seller to both speak to the finance company and arrange it so the buyer will make the direct payment for the pay-off price directly to the finance company holding the title. Then there is no question that it has been paid off, and the seller should immediately release the car to the buyer and the title should really be mailed directly to the new buyer.

I think there is a way this works, maybe someone else that has done this before can explain how it works.

 

No, this is a dangerous way to conduct the transaction unless you know and trust your seller. You should contact your state's DMV to obtain the proper Power of Attorney (or similar) forms that the seller should execute simultaneously with receiving your funds.

 

I'm no dealer but I've bought nearly 80 preowned vehicles from individuals since 1980 and only ONE time did I buy without title in hand.. seller was the mayor of a small town 8 hours out of state. 3 weeks he mailed me the title that was endorsed in the wrong space with improper mileage. Then took him over a month to straighten it out and get me a corrected replacement. So, I lost 2 months during the nice fall riding season due to his innocent mistakes. I will NEVER buy without title in hand.

 

Yeah, I agree with above. I don't think it's a "ripoff", but just a hassle to sell when you still have a loan. Like others, I have only bought/sold title in hand. I wonder if it's possible to simply transfer the lien?

 

I sold a vehicle last year that had a lien on it. I informed the buyer that the title was held by the lender. I had a faxed pay-off statement from the lender that showed the pay-off amount. She wired money directly to the lender, and I wired the balance (it was a motorhome, and I took a small hit). Once I received confirmation in writing (fax) from the lender that the loan was paid in full and that her payment had cleared, I released the vehicle to her. The lender required a statement of whom to release the title to, and with a further signed statement from the both of us, we arranged for the title to be sent directly to her (check with the lender what's required). This turned out to be a mistake, as she ended up having to send the title back to me for odometer disclosure and signature release. That's the only thing that I would have changed about the transaction (send the title to me, and then I would have sent it to her). The transaction took all in all one week to complete.

 

Use your banker. They do this all the time. NO BIG DEAL.

 

You are not buying the car from the owner...you are buying the car from the bank or credit union...the entity that possess' the title. What you do is call the guy's bank and arrange a closing where you and the owner meet with the banker, sign zee papers and hand over zee keys. It really is as easy as that. I sold 3 cars this way and it never took more than 30 minutes before I had a bank check in my hand for the difference in payoff, or a lein paid off reciept.

What to bring to closing:
Buyer brings cash or bank draft.
Seller brings Keys and vehicle. Plus someone to drive you home.