buying car from a private seller..

[Blackened302]

so i figured i'd get some advice from those that have done this before.

the gti i'm looking at buying passed a carfax w/ flying colors and is totally worth the asking price considering the condition and aftermarket add-ons. only thing is it's a private seller -- i've never purchased a car from a private seller and i dont' know how it works when their bank has the title.

i want a way of making sure that he's going to pay the loan/lien (not sure of the correct term) off, get the title, sign it over to me and ship it my way.

he won't do a personal check (can't blame him), so i was thinking either cash or cashier's check.

i will most likely do cash as he'll offer some sort of discount. should i draft up some type of form for him to sign detailing the deal? get a receipt?

what do i do??? hehe, thanks guys.

 

[Frank.Rizzo]

Buying from a Private Seller

I have bought several vehicles from private parties where they still owed money on the car. The first time, the bank was local and I met the seller at the bank, paid the bank in cash and had the title transferred into my name and then paid the seller the balance (at the same time).

In the second instance, the bank was not local and this wasn't possible. So, I asked to see a pay-off balance for the guy's loan, sent a money order in to the lender (GMAC) with a copy of the Bill of Sale (keep a copy for your records as well), with BOTH of our signatures on it and a photocopy of his driver's license with instructions to mail the Title/Pinkslip to me, as the new owner.

You can always call the guy/girl's lender and ask what their specific procedures are for obtaining the title in your state. Make sure you have a SIGNED Bill of Sale from the seller and keep several copies. I actually photocopy the sellers Driver's License, as well as mine, at the bottom of the Bill of Sale when I make copies, but I'm just anal.

Also, make sure you submit the "release of liability" form to the DMV stating the date of transfer of ownership. My friend just sold his car and, according to the police, it was used in a "crime" several weeks later. The police are expecting him to pay for property damage.

PS - CarFax is not perfect. My Mustang had a clean bill of health, but the previous owner showed me pictures of an accident that she had been in that was repaired by the local Ford autobody shop.

 

[Bosko5.0]

IF the accident wasn't reported to the cop it won't show on carfax report.

 

[Gearbanger 101]

Whatever you do, make sure you get a signed receipt for the "EXACT AMOUNT" you paid for the car from the seller.

Getting a second one for tax purposes is fine, but in the unlikely event this car turns out to be a total POS and it comes down to you having to get your money back from him, if you've only got a receipt for a couple thousand dollars (the one you guys agreed on for tax purposes) and nothing else, you really haven't got a leg to stand on if it ever goes to court should he decide that what's on the receipt, is all that he's giving you back as a refund!

 

[Blackened302]

thanks, gents!

forgot to mention that his bank/lender is not local at all (we're in TX, bank is in VA).

my fiance talked to the DMV and they say if I write out a note that outlines the details signed by both of us and get it notorized, I will be fine. i've already set up an appointment w/ a notary in his area.

i'm called his bank and they said they'd need to send it to him first so he can sign off on it, so i'm going to make sure and include that he will do that, then sign it off (and any other sale-related documents) to me immediately after having received them.

keep the advice coming, i really appreciate it!