Buying a used car with a lein.
#1
Buying a used car with a lein.
There is a car I want to buy and the owner said that it is still not paid off. Meaning it has a lein. How do I go about doing this without getting screwed over?
#5
It's a 2004 Jetta GLI. He bought it from the dealership 2 1/2 years ago making monthly payments.
So now he wants to sell it but he hasn't finished paying the car off yet..very normal situation since he is still a young guy.
So now he wants to sell it but he hasn't finished paying the car off yet..very normal situation since he is still a young guy.
#6
What would have to happen is he would need to get a personal loan, pay off the car from the dealership, they pay the personal loan back with the money he got from selling you the car.
Or
You work out a deal where you would take they price of the car you are going to pay (lets say 10 grand) then subtract the oweing payments (lets say 4 gran) and you pay him the difference and take over his fianacing. (you pay him 6 then make the rest of the monthly payment (4 grand))
Or
You work out a deal where you would take they price of the car you are going to pay (lets say 10 grand) then subtract the oweing payments (lets say 4 gran) and you pay him the difference and take over his fianacing. (you pay him 6 then make the rest of the monthly payment (4 grand))
#7
(There is an exception, if it's a car that's worth 2 grand yeah it's weird if it has a lien on it. But the original poster didn't say what kind of car it was so it's still stupid to make the assumption that just because it has a lien it's a bad car)
Also, since it's most likely a newish car since it has a lien, it was probably on warranty, and doesn't have crazy high KMs, so really if it has like 100k on it, all you need in terms of maintenance is oil changes and whatnot. I doubt people couldn't afford oil changes..And, since it's a newish car, he most likely has most of the records for it, so just ask for those and see.
My mom bought her 2006 Lexus last summer from a guy who was selling it because he had a kid on the way and wanted to free up some cash. He was financing it and he BABIED the **** out of, the car looked brand new (it had only 22000 on it but still).
Basically it's his responsibility to clear the lien when selling the car. What that guy did was he got a credit line for the remainder of what he owes, paid it off to Lexus finance, got a letter saying that the lein is cleared, and that's it. My mom gave him like 35k cash and he paid back the credit line, and my mom had a clear title car..
#9
#10
If he fails to pay off that debt when you buy the car, the bank or finance company can repossess the car from you and you have no recourse but to go after the person who sold you the car that he didn't fully own.
So the question then becomes, do you trust the seller to pay off the debt after you hand him your money?
#11
The lien means that the car is collateral for a debt. Until that debt is paid off, the bank or finance company has first dibs on the car.
If he fails to pay off that debt when you buy the car, the bank or finance company can repossess the car from you and you have no recourse but to go after the person who sold you the car that he didn't fully own.
So the question then becomes, do you trust the seller to pay off the debt after you hand him your money?
If he fails to pay off that debt when you buy the car, the bank or finance company can repossess the car from you and you have no recourse but to go after the person who sold you the car that he didn't fully own.
So the question then becomes, do you trust the seller to pay off the debt after you hand him your money?
#13
#14
For anyone that wants to know this is how it is done.
1) The buyer can transfer ownership and takeover the monthly payments.
2) You write a cheque for the purchase price you agreed to with the seller to the bank/dealership to whom the payments are made to. The owner pays the rest. Lein get's cleared. You get a letter stating the lein is cleared. Ownership can then be safely transferred.
1) The buyer can transfer ownership and takeover the monthly payments.
2) You write a cheque for the purchase price you agreed to with the seller to the bank/dealership to whom the payments are made to. The owner pays the rest. Lein get's cleared. You get a letter stating the lein is cleared. Ownership can then be safely transferred.
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kubus
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19-Oct-2006 04:01 PM