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Buying Used Car With Lien

 
Old 04-17-2013, 10:54 PM
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It's really not that bad. Few extra steps and additional forms to fill out, but that's about it.
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Old 04-18-2013, 12:36 AM
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like anything, whether i be baking a cake, crossing the street, etc, it CAN be complicated, or it can be... well, cake! lol

long story short, it's not that difficult at all if you know what you're doing. i flew all the way out to Texas to get my ap2. it had a lien on it too. fortunately, the seller was mature, cooperative, & professional.

here's what you need to do:

--find out who has the lien on the car (Honda Financial, Wells Fargo, etc) & how much payoff amount is.

--find out how long it'll take for the current owner/seller to take possession of the title after loan/lien is paid off (most financial institutions will have to mail the title later. might take a couple weeks)

--after a selling price is determined, figure out how much goes to lienholder & amount to seller (if there's a balance)

-- when the actual transaction takes place, make sure there's a bill of sale. if you deal w/the lienholder directly, they should draw it up for you guys.
they might give you a release of lien too, esp if they can't give you the title right away. KEEP THOSE!! they'll be your proof of ownership until you get the title & are able to register the car under your name.



the most difficult part is getting the title, esp if you're dealing w/an out of area seller. i got lucky. my seller did a ton of research & legwork for me. at my request, i had him arrange for his credit union (lienholder) to have the title tranferred from their company's lien storage site to his local branch on the day i arrived. they normally don't do this, but fortunately, the seller knew his branch manager well. the mgr was able to have the title overnighted to his branch. there was no way i was leaving w/out the title, esp since it was all the way in Texas.

the other hard part was registering the car at the dmv when i got back. besides the huge line, out of atate cars are subject to an inspection, prior to registration. it's not a big deal. just a dmv clerk w/a clipboard & a few basic equipment checks.

overall, it was a pretty smooth transaction. again, i got lucky w/an ultra cooperative seller & lienholder. just make sure to do your homework, & have everything confirmed & mapped. don't assume anything or leave them up to chance
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Old 04-18-2013, 01:51 AM
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I purchased my S this exact same way 2 months ago. It's not that difficult. It's a pity people gives strong opinions without experience. You and the lien's holder will/should go to the bank together. Let them know what you're doing. They will take care most of it for you. Their main concern is getting what's still owe to them. Then you'll just fill out DMV's paper work. The DMV will send you the title. Contact me. Would be easier and faster if I talk to you! Good luck!
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Old 04-18-2013, 02:09 AM
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Btw. If the selling price is $20k and the seller still owes $5k to the bank. You would needs 2 cashier checks or whichever your payment method is. $5k for bank and $15k for seller. As you're with the owner at the bank doing the paper work. He/she will sign the car over to you. By the time you walked out of the bank the car is yours. Just needs DMV's papers to be filed. I'm paraphrasing the entire procedure, so this is not exact.
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Old 04-18-2013, 08:18 AM
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Surprised no one mentioned this, but what you can do is just pay the seller the full asking price and have him just pay off the lien instantly. I did this to purchase my 09 ap2 from a fellow in Oregon. We did this all on the phone, and it only took a day. Good luck
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Old 04-18-2013, 08:48 AM
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Originally Posted by TougeHorseman View Post
Sounds ugly buy lewis' car instead!
then I can pocket the $500 referral!
LMAO~~~
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Old 04-18-2013, 08:48 AM
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Originally Posted by wowwitsgau View Post
Surprised no one mentioned this, but what you can do is just pay the seller the full asking price and have him just pay off the lien instantly. I did this to purchase my 09 ap2 from a fellow in Oregon. We did this all on the phone, and it only took a day. Good luck
it's great that you had a troublefree transaction from a cooperative seller too, but not everyone is comfortable sending all (or any) $$ up front w/out at least first hand confirmation from the lienholder that the lien will be paid off & WHEN the title will be released.

i don't want to scare any prospective buyers out there. buying a a vehicle w/a lien isn't difficult, but you have to do your due diligence & use some common sense.
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Old 04-18-2013, 09:19 AM
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Originally Posted by Luckyaze View Post
I purchased my S this exact same way 2 months ago. It's not that difficult. It's a pity people gives strong opinions without experience. You and the lien's holder will/should go to the bank together. Let them know what you're doing. They will take care most of it for you. Their main concern is getting what's still owe to them. Then you'll just fill out DMV's paper work. The DMV will send you the title. Contact me. Would be easier and faster if I talk to you! Good luck!

Did this when I purchases my S. The bank sent me the title in my name.
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Old 04-18-2013, 09:37 AM
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Originally Posted by Trustd_1 View Post
Originally Posted by wowwitsgau' timestamp='1366298296' post='22482545
Surprised no one mentioned this, but what you can do is just pay the seller the full asking price and have him just pay off the lien instantly. I did this to purchase my 09 ap2 from a fellow in Oregon. We did this all on the phone, and it only took a day. Good luck
it's great that you had a troublefree transaction from a cooperative seller too, but not everyone is comfortable sending all (or any) $$ up front w/out at least first hand confirmation from the lienholder that the lien will be paid off & WHEN the title will be released.

i don't want to scare any prospective buyers out there. buying a a vehicle w/a lien isn't difficult, but you have to do your due diligence & use some common sense.
This. You don't pay full price and expect the lien to be paid. Sometimes that doesn't happen.
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Old 04-18-2013, 09:58 AM
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Since in this case it's Honda Finance, I can't work it out with the bank in person. Others may confirm, but I don't think I can walk into a dealer and have them handle the transaction like another B&M bank.
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