I'm buying an S2000. However, I'm trying to do it private party since it will save me a lot of money on sales tax. (I live in AZ.)

Anyway. The problem I am having is that all but one person is still making payments on their car. They want a check from me to pay off their loan. Then I have to wait 5-10 days before they can send me the title. I have a big problem with handing someone $23-$26,000 without walking away with a title in my hands! I've been told their are escrow services that can deal with situations such as these, but that seems kind of broad. Can someone give me some tips?

This is the first car that I've bought private party. What is a loan receipt?

There is one car that is local and completely paid off. (Title is in the owner's hands.) The car has 17,000 miles. It's the color combination I want. It's in VERY good condition. Not perfect. There's a white spot on the top which looks like it was bird s**t. It will probably come out...hopefully, and if not it's not that big a deal. It's always been an AZ car. There's a few rock chips which is to be expected especially in AZ. It was lady driven 90% of the time. If you look underneath it looks like she might have run up on one of those parking curbs once, but you can't see it unless you're way down in front of the car. The problem I have is that the owner wants $27,500 for it. I've seen 03s with less miles going for less in the area, but different color combinations. Private party blue book for the car is $24,400. What are your thoughts on this?

(Personally my thought is that this is the same as paying taxes and if I'm going to do that I'll buy new.)

Sorry for all the questions, but my car is sold and I'm ready for an S. Like 2 years ready for an S!

 

My advice would be to find a car that is at the right price but without the finance issues you described. Don't be afraid to pass up a deal, a better one will come along.

 

I'm sure it works the same way in the States. You do NOT hand over the money to the seller. You get him to find out the exact "payout" on a specific day. You also do your own lien search. He may have more than one promisary note on the car. Make the cheque payable to BOTH the seller AND the lien holder, go with him to the financial instution with the cheque (cerified) and get the loan released on the spot. Actually, you need two cheques. One for the amount of the purchase price that is not the loan and this is payable to the seller alone, but you give this to him at the same time as the loan is retired.

 

When I bought my car, I handed the previous owner a check and he handed me a bill of sale. I drove away in the car. Once the check cleared, I got my title. I felt safe with my bill of sale and the car, because I had legal proof that I'd bought the car from him. The seller felt confident knowing that he still had recourse if the check was illegitimate. The multi-step process actually isn't that bad for either party.

 

In South Carolina, it's the same as what frycow described. I obtained a notorized bill of sale and the keys in exchange for a certified check to the loan agency. The title was delivered to the previous owner (because it had her name on it) and then she sent it to me. My proof of purchase was the notorized bill of sale. My security was I actually had the car and the keys.

Be careful, it may be different in your state. Call your DMV.

 

Unfortunately a bill of sale is no good in AZ the last time I talked to the DMV hear they made it very clear I have to have the title...I think I'm just going to buy an 04. This is too much hassle. Anyone know if the Comptech blower still fits on the 04s?

Thanks folks.