993Brendan

Hey all- got a quick question for you as I am looking at picking up an E46 M3as a daily driver. A couple of the cars I've seen are currently being financed by the seller, so the title won't be available for a week or so after the payoff. Anyone ever encounter this? Just curious about the sequencing of events and how one deals with paying for the car, arranging shipping, getting the title, etc. When I bought my 993 many years ago I just trusted the seller (he was a fellow Rennlister), but I'm not so sure I want to do that with the M3 crowd!

Thanks in advance.

SirPzalot

Make sure the payment goes to the lien holder, not the seller. Preferably there is a local branch that will accept your payment and provide proof of payment. You want the title sent to you not the seller.

VNTGSPD

Also, using an escrow service could be very helpful here. You may spend a bit more for this but it's better than getting taken!

993Brendan

Thanks for the advice. I definitely agree that it is worth a little more not to get taken.

air eater

When I bought my 993, I had the lien holder (bank) fax me a copy of the title they held until payoff. The bank officer did not hesitate to send it to me.
Maybe paranoid, but I compared the title's VIN to the VIN plate on the vehicle.
I wire transferred the money directly to the bank after receiving the copy of the title.
It was a very smooth and secure transaction.

4sound

find out who the lien holder is. You can give them "Authorization of pay off" document. As long as you and the seller sign it, you can then give this directly to the lien holder along with the amount that is owed on the lien. (of course you would give the difference to the seller) This way, u have receipt of payment and the lien holder will sent the title directly to you. You should also get "power of attorney / bill of sale" document from the seller, showing u purchased the car.

ilko

It depends on the state and the lien holder.

Some lien holders after being paid in full only release the title to the person whose name is on the loan.

Depending on the state, the lien holder may not even keep the title. After the initial purchase of the car the state sends the title directly to the person the car's registered to with a lien on it. To be able to sell the car the seller needs to pay off the loan and the lien holder then in turn sends the seller a notarized letter stating the lien has been released. They also inform the state's DMV.