Need help: Buying a car from a third party

[larrynsx]

I'm going to buy a 03 Mercedes ML350 from a private seller for $28k however, his ML is still on financing and owe $19k. My question is how do I purchase the vehicle while it's still under financing? I'm going to pay cash for the ML and I assume I have to send a check to his bank to get the title and then write another check for the balance to transfer the title? What kind of security do I have while I'm writing a check to payoff his ML?

Any ideas? I definately need some coaching on this.

Thanks!
Larry

 

[95NSXT]

Is he financing with someone local? If so, why not just meet the guy at his bank, give him the check and he will pay off this loan, get the title, sign it to you, and in like 30 minutes you're on your way. Always inspect the car one last time before you hand over that check though.

 

[satan_srv]

When Insurance companies pay out a claim and the car is financed they make out the cheque to you AND the creditor/bank. So both parties are invovled in the cashing of the cheque.

 

[larrynsx]

Is he financing with someone local? If so, why not just meet the guy at his bank, give him the check and he will pay off this loan, get the title, sign it to you, and in like 30 minutes you're on your way. Always inspect the car one last time before you hand over that check though.

His bank is not local and as far as I know, DMV will send the pink slip to him directly after his loan is paid off. There should be a way or some sort of document that we can sign to provide me some security cause I really don't feel very comfortable to paid off a loan for somebody wile the car still under his name.

 

[andyray1983]

My simple rule for person to person - his title and my check should change hands at the same time. The best way to do this, as 95NSXT recommended, is to meet at the sellers financial institution and let them handle it.

If this is somehow impossible, I would take the seller out of the picture and talk directly with the his financial insitution. They are the ones who own the car anyway. The bank is also the party that would sit on "your" title if things aren't 100% right, for instance if seller somehow handles paperwork incorrectly.

Don't forget, usually without a title in hand the state will not register a car, therefore you can't drive the vehicle until the bank gets paid, and you receive the title. (temp tags are a dealer luxury) Banks and credit unions are often slow with this paperwork, and if the seller already has his cash, there may be little incentive for him to hurry this process along.

In conclusion - Try very hard to make the seller get the title, and make it clean - that's your best bet. Attempt to make it the seller's problem. You're coming with cash $$$, no strings attached. If you determine that you can't, deal directly with the bank. Make sure the timeline meets your needs, and the seller has some incentive to get you your title quicky.

Good luck!

 

[DocL]

I've sold one car that I still owed money on and I did it through my attorney. The buyer sent my attorney a check that went into his escrow account, he then paid off the car and the title was sent c/o my attorney. I only did it this way so that the buyer knew that I wouldn't take off with his money and my title. This is just one suggestion that may work if you and the seller agree to use a lawyer.