Purchasing a car from a private buyer who does not have possession of the title to the vehicle can complicate the transaction. Before you can take full ownership of the car, you must be able to get the title from the seller. In this situation, the seller must complete the proper steps to make sure you get the title to the car.
Go to the Lender
When buying a car from a seller who does not have the title, you may need to go to the auto lender to close the loan. If the person selling the car does not have the title because the lender still has it, you may need to close the loan at the lender's office. The seller will have to contact the lender to get the details of what will be involved. The lender may have a specific procedure that will be used, but in most cases, the lender will simply have you close the transaction at its office.
Escrow Service
Another option that you may want to pursue is using an escrow service. With an escrow service, you give your money to a third party to hold. The third party then alerts the seller that the money has been accepted. At that point, the seller then provides the car to the buyer. The escrow service then uses the money to pay off the loan and get the title. The title is then provided to the new buyer of the car.
Securing the Title Before the Sale
Instead of closing the transaction at the lender's office, the seller could also try to obtain the title to the car before the transaction takes place. To facilitate this process, the seller may have to pay off the car prior to being able to sell it to you. The seller could pay off the car with a credit card and then simply pay off the credit card bill once he receives the money for the car. Once he pays the car off, it could take a few days before the lender releases the title. Then the seller will have the title when he sells the car to you. If you want the seller to go through this process, you will have to agree to purchase the car first. Some sellers may not be willing to pay off the car unless they know that you will definitely purchase the car.
Transfer of Ownership
Once the seller has the title, he will also have to go through a process with your state to transfer ownership of the car over to you. This typically involves taking the title to the Department of Motor Vehicles or similar office and filling out a title transfer form. A nominal one-time fee will also be assessed for this process. Once the fee is paid and the form is submitted, a new title can be issued for the car with the new owner's name on it.
0 comments:
Post a Comment