Need help buying a pickup private party with a loan on it yet
10-18-2009, 09:04 PM
#1
Need help buying a pickup private party with a loan on it yet
I think I may have found a pickup to buy in Minnesota. (I'm from Iowa) The guy has a loan on the pickup so he does not have the title in hand. If I decide I want to buy the pickup and we agree on a price, what do I do?
Give him $100, $500, $1000 to hold it and get the title in hand with a write up/bill of sale showing I have a refundable deposit of $XXX down???
I've never bought a vehicle privately where someone still has a loan on it. Any advice would be great, thanks!
Give him $100, $500, $1000 to hold it and get the title in hand with a write up/bill of sale showing I have a refundable deposit of $XXX down???
I've never bought a vehicle privately where someone still has a loan on it. Any advice would be great, thanks!
10-18-2009, 09:43 PM
#2
Senior Member
I sold a car that had a lien against it. I simply went to the buyers bank and they handled it all. I had given the buyer my loan number before hand and his bank did the rest. They contacted the bank where my loan was at and they had all the paperwork ready. If you are paying cash, you most likely could go to the owners bank and pay them and they can release the title to you. Of course they will not have it on hand and you will have to wait a few days. If it is all done at a bank I would not be to worried about a problem.
I would not give the owner any money, no more than what you are willing to possibly lose, since he does not hold title. Of course if the loan is for $2000 and you are buying it for $8000 you could work that out later. I would not turn any money over until the vehicle title becomes involved.
I would not give the owner any money, no more than what you are willing to possibly lose, since he does not hold title. Of course if the loan is for $2000 and you are buying it for $8000 you could work that out later. I would not turn any money over until the vehicle title becomes involved.
Last edited by dnlow; 10-18-2009 at 09:46 PM.
10-18-2009, 09:58 PM
#3
Ok, I like the idea of not handing over money until the title is involved. If I'm loaning money on it too, does the bank handle the registration or won't I need to take the title to the courthouse and get my tax/registration payments done?
10-18-2009, 10:44 PM
#4
Senior Member
I am from MN and I have bought vehicles with a loan/lien on them....
Two things I require.... A bill of sale stating when I bought the vehicle, the mileage, vin, etc... and that the lien would be taken care of. I do not have them put a dollar value because of numerous reasons. I also require a phone call to the bank and I always talk to the banker whom the owner of the vehicle deals/communicates with. The banker will NOT tell you how much is owed but I do tell them I am handing so and so this much money in cash. In the bill of sale, I put in a statement stating I require a lien card to be in my hand within ten days.
Two things I require.... A bill of sale stating when I bought the vehicle, the mileage, vin, etc... and that the lien would be taken care of. I do not have them put a dollar value because of numerous reasons. I also require a phone call to the bank and I always talk to the banker whom the owner of the vehicle deals/communicates with. The banker will NOT tell you how much is owed but I do tell them I am handing so and so this much money in cash. In the bill of sale, I put in a statement stating I require a lien card to be in my hand within ten days.
10-18-2009, 11:32 PM
#5
Senior Member
On an other occasion I purchased a free and clear vehicle from a private party and I also got a bank loan on the car. I had to take car of registration myself. Now this is Arizona and your state is different. I would just ask the bank where you are getting the loan how it is done.