OT::: Buying a Car, need advice

[MonkeeFish]

Anyway, im planning to buy a car off someone that still owe money on the car but my main concern is when i give him the money and even though we both sign a contract that has be notarized what if he doesn't send me the pink slip or the title after he pays off the car?

 

[chalowolf]

Write a check and put a hold on it till you get a pink slip. Might take a while.

 

[drake66]

escrow

 

[bennyinca]

Ideally you get the car title directly from the financial institution (bank/credit union/etc) that holds the slip for the car.

Personally, I would arrange to meet at the bank, and give your $ to the bank. If there is still a balance, have the current owner pay the remainder right away. That way you complete the transaction at once.

 

[H22ATypeS]

Ben's got the right idea!

 

[bennyinca]

Oh, forgot to add that if you decide to do a contract / notary document /etc, your recourse will probably be small claims court :eek1: :eek1: maybe Judge Judy :lol: if something does not go as planned.

 

[Sk8r]

Meet at the bank. Get it all done, one stop shopping. And hie thee to the title agent immediately afterward.

 

[BMitch]

You're assuming he will pay off the lien holder (bank). Otherwise, the bank will still have title.

Not to mention, court can be expensive with fronting the court fees, serving the other party, etc.

As it was once said in a Survival insurance commercial, "I can't take that ride."

 

[MonkeeFish]

But the only problem i see is that im financing the money from my own bank would that be any problem?

 

[Wilafur]

sounds like you may require an escrow because one lender is fronting the funds and another lender is going to be paid off.

 

[MonkeeFish]

<a href=showthread.php?s=&postid=7299519#post7299519 target=_blank>Originally posted</a> by Wilafur
sounds like you may require an escrow because one lender is fronting the funds and another lender is going to be paid off.

what's an escrow?

 

[fish_fanatik]

Most banks these days offer a "blank check" that may be written up to the loan amount you are approved for. Just write the check directly to the other Fin Inst.

If the sellers' bank is in the area go with him....otherwise you will have to take the risk and give the guy your check. On the other hand, once you give him the check, you will take possesion of the car. If anything, the guy giving you the car is taking the greater risk just in case your "check" doesnt clear.

 

[MonkeeFish]

<a href=showthread.php?s=&postid=7299543#post7299543 target=_blank>Originally posted</a> by fish_fanatik
Most banks these days offer a "blank check" that may be written up to the loan amount you are approved for. Just write the check directly to the other Fin Inst.

If the sellers' bank is in the area go with him....otherwise you will have to take the risk and give the guy your check. On the other hand, once you give him the check, you will take possesion of the car. If anything, the guy giving you the car is taking the greater risk just in case your "check" doesnt clear.

The guy lives in my area that's a great idea. I will go to the bank with him and sit down with him and the agent. Ill write the check out to the bank to pay off what he owes and also get a notary. How does that sound?

My other question is ::: If i write the check out to the bank to pay it off. How long does it take to get the pink slip or how long till they send the pink slip over to my bank?

 

[Wilafur]

in a nutshell:

money, property, a deed, or a bond put into the custody of a third party for delivery to a guarantee only after the fulfillment of the conditions specified.

 

[fish_fanatik]

Nah,

don't go through escrow. It will just cost extra money. You can if it will give you a piece of mind but this type of transaction happens ALL THE TIME.

Escrow is basically a neutral 3rd party company that hold on to the funds until the transaction is complete. In this case it wont even work b/c the existing bank will not release title until they physically are paid off. ( you could check but I doubt they will)

 

[MonkeeFish]

<a href=showthread.php?s=&postid=7299571#post7299571 target=_blank>Originally posted</a> by fish_fanatik
Nah,

don't go through escrow. It will just cost extra money. You can if it will give you a piece of mind but this type of transaction happens ALL THE TIME.

Escrow is basically a neutral 3rd party company that hold on to the funds until the transaction is complete. In this case it wont even work b/c the existing bank will not release title until they physically are paid off. ( you could check but I doubt they will)

so what do you think of my idea? Would the fact that im writing them a check that i financed delay me getting the pink slip?

Also i agree with you on the escrow, i just did a search and read up on their functions. It is true that it won't work because they wont release the slip to the guy untill he pays them off so if they can't get my fund, he can't pay them off and thus they won't release the slip to him.

 

[fish_fanatik]

It can take over a month before you get title, your existing bank knows how it works . Besides, you wont get title, your bank will. I would check with your bank and see what they want you to do.

I wouldnt even pay for a notary. Both you and the seller will need to sign a 262 form(vehicle and vessal transfer form) this has the odometer statement, bill of sale, etc this document is worth more than the notary as is it basically saying that he is handing the vehicle over to you.

 

[MonkeeFish]

<a href=showthread.php?s=&postid=7299597#post7299597 target=_blank>Originally posted</a> by fish_fanatik
It can take over a month before you get title, your existing bank knows how it works . Besides, you wont get title, your bank will. I would check with your bank and see what they want you to do.

I wouldnt even pay for a notary. Both you and the seller will need to sign a 262 form(vehicle and vessal transfer form) this has the odometer statement, bill of sale, etc this document is worth more than the notary as is it basically saying that he is handing the vehicle over to you.

so how exactly do i get a 262 Form? Also how would i register or get the title change if i do not have it?

 

[fish_fanatik]

no, you writing a check will make no difference in regards to how long it takes for you to recieve title. Trust me, plan to wait over a month to get it.

It will all depend on of the existing bank holds on to the check for 15 days or so, then they need to notify DMV that they no have interest in the vehicle...the DMV will then generate a title and send it. Thus it takes over a month. IF the existing bank actually holds on to the physical title, then it wont take as long. (however, most banks in california are on a paperless title system meaning they dont have the titles)

 

[MonkeeFish]

<a href=showthread.php?s=&postid=7299619#post7299619 target=_blank>Originally posted</a> by fish_fanatik
no, you writing a check will make no difference in regards to how long it takes for you to recieve title. Trust me, plan to wait over a month to get it.

It will all depend on of the existing bank holds on to the check for 15 days or so, then they need to notify DMV that they no have interest in the vehicle...the DMV will then generate a title and send it. Thus it takes over a month. IF the existing bank actually holds on to the physical title, then it wont take as long. (however, most banks in california are on a paperless title system meaning they dont have the titles)

Oh alright you seem knowledgeble about this. Is there anyway i can reach you such as aim or messenger because i got more questions and it's kind of eh to post on this and wait for a reply.