Buying a car from a private seller who still owes money can be complicated.The title of the car won't be transferred to you until the loan is paid off.When you buy a car, you don't want to be held responsible for the liens on the car if the loan is not paid off.You can make sure that you don't find yourself with a financial burden by taking certain precautions.
Step 1: You should check with the Department of Motor Vehicles.
You can check the status of a car's liens if you live in the US.The make, model, and vehicle identification number can be found on the vehicle's registration paperwork.An inquiry will follow the same procedure regardless of the state.The last date that a title was processed in that state, how many liens there are on the vehicle, and the name and address of each liens holder will be provided by the Department of Motor Vehicles.The online form requires you to provide your contact information.To identify the vehicle, fill in all the necessary information.The make, model and year of the vehicle will be included.The form can be saved as a PDF or image file.Attach the form in an email and send it to the email address listed on the website.
Step 2: Find something online.
You can search for liens using the VIN and the vehicle's make and model on many websites.Some websites are free while others charge a fee.
Step 3: You should check the Personal Property Securities Register.
Some countries have a government-run Personal Property Securities Register, or a similar registry in place, in which security interests in personal property are cataloged online and can be searched for by interested parties.If you live in a place with a registry, you can use the internet to find out if the car you're buying has money on it.You can find buyers in Australia and New Zealand at the website.Search results can be sent to a mobile phone for a fee.
Step 4: There is an HPI check to run.
The histories of used cars are checked by HPI.Potential buyers can be told if a car is stolen or has altered mileage by using HPI Checks.When buying a used vehicle, HPI Checks can provide peace of mind.
Step 5: Look at the title or certificate of registration.
If there are no debts on the car, a copy of an official certificate of registration is required in some countries.The bank liens on the vehicle will be reflected in the automobile's title in other countries.
Step 6: Tell the seller to pay.
If you're interested in buying a used car, you may want to make sure the seller pays off his debts before you give him money.You may want to suggest that the seller take out a personal loan to cover the costs, in order to secure the title before you buy it from him.Make sure you get a signed, written proof of payment from the seller's bank or financing company if you insist on paying off his loans before buying the vehicle.If you can, accompany the seller to the bank or financial institution to make sure that the vehicle's loans have been paid in full.If you can't get a letter from the bank stating that the loans were paid in full, you may want to look into other options.You can verify that the loans have been paid off.
Step 7: The price should be re-negotiated.
If you're still interested in purchasing the vehicle, you can try to get a better price by taking into account how much the seller still owes on his loans.Subtract the amount that the seller owes to the bank from the price you thought was a reasonable sale price for the vehicle.After you've paid off the rest of the seller's loan to the bank or financial institution, you can offer to pay that amount.You can get a datedPayout quote directly from the seller.You can have the title transferred to your name once you've paid off the loan and given any remaining money to the seller.
Step 8: You can set up an account.
If you're worried that the seller won't be able to pay off his car loans, you can set up an account.During this time, the seller must pay off his loans and transfer the title to you in order to receive your money.PaySAFE is recommended by the Department of Motor Vehicles in the United States.You can set up an account at paysafeescrow.com.The seller should agree to the terms and conditions of the transaction.You should deposit your money.The title is ready to change hands if the money is not released by PaySAFE.
Step 9: To broker a sale, ask a dealer.
By getting a dealership involved, you can make sure that there is a paper trail that shows that ownership is legal.The dealer will want to make a profit by buying the car from the seller and selling it to you, but you will have peace of mind with your purchase.The dealer will want to make some money from the sale, so expect this to be a more expensive option.If the seller pays the dealer out of his or her profits, you won't have to pay more for the car.