jeffm

Hey all,
I'm considering purchasing a car out of state (981), but due to the virus situation, it's a little difficult to get down and look at the car. With the conversations I've had with the owner, I'm pretty comfortable purchasing the car (site unseen) as I've had access to all service records, spoke to the shop that performed the service and have seen multiple sets of pictures. With that said, the issue is how best to handle purchasing the car with an outstanding loan and not in person.

The agreed price is within $1500-2000 of the loan....with the loan being slightly more that what the sale price is. What I'm trying to figure out is, how to get this deal done. My thought was to have the car taken to the motorsports service center, have them visually inspect the car and have a car carrier pick up at the shop. What would you guys feel comfortable with in regards to transacting the deal? Get copies of drivers license, have a state bill of sale signed then write a check directly to the lien holder (bank)....and then have the car picked up? Bear in mind, I would need to take the sellers word that the outstanding balance is paid and then the title is sent to me once the loan is settled.

Just looking for some advise of those who have been in this situation before.

Cheers

Parman

I bought a Golf R which had a lien a few years ago. After the deal was agreed to I told the seller I wanted him to have the title in hand prior to me picking up the car and completing the purchase. He paid off the car and there were no problems. If your seller agrees to do this it may take a couple weeks for the title to reach the seller.

Davesrave

The only way I've heard of this being done safely is to meet at the lien holder's office. You provide your check, the seller provides the difference, and the lien holder gives you the title. It may be possible to do it remotely, with the lien holder holding the money in escrow. You might want to talk to his bank or lien holder about this.

jeffm

Yeah....that's the problem. He doesn't have the funds to pay it off without my cash offer.

kiznarsh

I sold my 981 sight-unseen to another member here. Mine was a lease and the process took about a month. I also didn't have the cash to pay off the car so here's what we did:

• Sale price agreed upon based on photos, phone conversations, and a signed Bill of Sale from me to the new owner
• His bank wouldn't give him a loan without the title, and PFS (Porsche Financial Services) wouldn't release the title without receiving the payoff amount
• The sale price was higher than my loan balance, but his bank wasn't going to buy the car for more than the payoff amount
• I requested a payoff amount letter from PFS documenting the balance on the loan
• New owner sent me a check for the difference between the sale price and my balance
• I mailed the payoff letter to the new owner's bank who then contacted PFS and paid off the car
• PFS sent me the title after 2 weeks
• I signed and mailed the title to the new owner
• New owner gave the title to his bank and was then allowed to register the car

So yeah, not very smooth but it worked. Alternatively you can use an escrow account or if you're feeling super comfortable, you can request a bill of sale and pay the current owner, have them pay off the car to receive the title, and then coordinate with you for transportation.

deilenberger

I bought an M3 where the owner owed on it.

We parked the M3 in my garage.
I wired money to his bank against his lien.
The bank gave him the title, he overnight-FED-EX'd it to me.

Took 2 days.

uscarrera

If you are within $1500-2K of his lien wire that amount to lien holder directly that way title gets released in you purchase contract list that payment as your down payment against the purchase, when seller has a clear title finish off deal as you agreed.
Rich

TMc993

If I understand the situation correctly, the total amount the seller owes the lien holder is the sale price you agreed on plus $1500-2000. So, in order to get the lien released, the seller has to pay the lien holder all of what you pay him plus $1500-2000. If this is the situation, you, the seller and the lien holder need to get together and work a process so that you provide payment directly to the lien holder to be applied to the loan at the same time or after the seller pays the additional $1500-2000 toward the balance on the lien. The seller gives you a bill of sale, the lien holder releases the lien on the title and the seller signs the title over to you. The key is to get the funds to the lien holder, not the seller. If you really want to go the extra mile, find an attorney in the city where the car is located to act as your agent with the seller and the lien holder.

vracer

Do you happen to know anyone trustworthy near the seller who could take custody of the car for a couple of days before it is ready to be picked up by transporter? I bought a car directly from the lien holder after they had made arrangements with the 'owner' to get the small bit of money that was his negative. I got a written agreement from the bank that they would sell me the car for their loan amount, and I gave the 'seller' a cashier's check made out to the bank for that amount & drove the car home. My negative equity seller was the living, breathing definition of the word, oxymoron - a trustworthy lawyer.

jeffm

As the shelter in place loosens a bit tomorrow, my thought was to do a one way car rental (basically free with National points) and drive the 5 hours to the owner. From there I could test drive the car and give it a look over. My thought at that time was to then visit his bank (not the lien holder...that's Capital One) and sign a bill of sale with a bank notary as witness. From there I would bring a bank check for the sale price and either:

a. Deposit in his account and he submit a payment to Capital One electronically
or
b. Along with my check, he produce a bank check for the payoff difference and we put both into a Fedex envelope and send to the bank

At that point, I could take possession of the car and then have him send me the title once he receives it. At least I would have the car and would just wait for the title. That would leave me the car and the bill of sale as some sort of protection. Does that make sense?

Bankjob

get the pay-off letter from the bank
Joint check, the Bank and the seller.
He takes the check to the bank pays off the loan the bank gives him any excess proceeds and the title with the title signed by the bank acknowledging the lien release
notarized bill of sale stating the transaction

still some risk

TMc993

If you're going to involve checks as opposed to wiring money, I'd make your check a bank check made out to the seller and Capital One. He endorses it and sends it on to Capitol One along with his share of the underwater funds. If it were me, I'd figure out a way to wire the funds directly to the Capitol One lien.

CarAholic

Great advice here and what I have done in the past. In your current situation the seller needs to pay off the loan down to the amount you are buying it for. Once he does this he needs to send you a letter from his bank showing the pay off amount.

jeffm

Ah, yes....having him pay down the loan, to the agreed purchase price, is a great idea!

Libast

Met at the lienholder
Paid the cash
got the lien release
sent him on the way with title in hand.