I found this car i want to buy and its a private sale. I have never bought from a person before so i dont know how this works.

The owner still owes on the car and he is asking 24k for his car. Now does that mean, i have to pay him 24k and still take on his payments and continue with that or does that mean, the bank gets what they are owed and he gets the remainder.

Also, which company has the best interest rates. Can anyone help?

I appreciate any help i can get.

Thank you fellow S2K members.



-Ed

 

You would get a check for that amount from whoever you finance through. The check would be made to the bank who he has it financed through.

Pretty much...your bank pays his bank for the car. I've seen it done like this numerous times, there might be other ways though.

 

So i dont have to continue his payments right? THe bank gets the rest of the finance and he gets the remainder of the money right. I dont have to pay a penny more right?

also, do you know any companies with good rates.

 

Well, if your going to finance it, you will be making the payments for the amount that your bank will be giving to his bank.

As for what lenders to go with...there are just so many. Each bank, credit union, etc., is going to be different for everyone.

I'm financed through Chase, and I'm happy.

 

The money you give him should payoff the balance he owes on the car.
The money you give him are proceeds from your loan.
You make payment on your loan only.
If the money from you loan is more than he owes....he gets the extra.
If he owes more than he is selling the car for....he brings cash to closing.

The rate you get may be subject to your credit worthiness.
Credit Unions usually have bery competitve auto loan rates.

 

You do not have to pay his payments. Lets say he sells the car for $24k but he only owes $18k left. You go in and get a loan for $24k. You give him the check for $24k and you get the car. The seller pays off his $18k to his bank and he pockets $6k. The title stays with the state.

The $24k you get from the bank, will be financed and they will set you up with a monthly payment and how many years you will pay off. This is all based on your credit score and stuff.

Any credit union gives good rates for loans. Normally credit unions will not just give you a check but have the seller come in and sign the Bill of Sale and all these papers that get notarized. Once its done the bank cuts him a check so really no one gets screwed. Sorry I'm typing through a fire alarm so I'm typing as fast as I can without re reading. Good luck!

 

hahaha,

die in a fire or type up a response. I feel the love.

so ya, i understand now. just gotta find the best rates.

thanx guys for helping me. ill post pics of my new car when i get it.

 

One thing to consider is that the bank or credit union may not want to finance 24k on the car....that depends on its age and mileage.

 

In my case, which was similar to yours was go to the bank and get the loan for the amount that he is asking. If you want the car that day, make sure you get cashier's checks. You pay him the entire amount he asks for, he pays off his loan to the bank, then you just pay off your loan to your bank.

 

thanx.