993C4Smontreal

I am buying a car from the US and am not very familiar with lean/title transfer procedure.

The seller says he has a loan to pay off on the car and needs me to pay him 1st to pay off the loan.

How can I MAKE SURE that the title is clear and there are no leans on the car BEFORE paying him ANYTHING.

trophy

Tell him you will write out 2 checks, one to the company that holds the lien and the other to the seller.....

Martin S.

put on your snow shoes and trot down to the US and accompany the seller to the local Department of Motor Vehicles office. There you will find out that state's protocol. Some states allow you to forego sales tax if you can prove you are taking the car out of the country.

I assume you have has a PPI done on the car and a CarFax search. This is critical.

If the guys has a lien on the car, get the name of the lien holder and you and the guy conference call the lien holder...better you go there in person if possible.

993C4Smontreal

Not sure what you mean by this??

ilko

OK, here's how it goes down, assuming you're buying the Pepper from Queens: Ask the seller who the financing company is and what is the payoff on the vehicle. Then find out how long it takes between the time the car is paid off and the time they will send out the lien release letter. Usually it shouldn't take more than a week, although some companies like to wait longer. The only way you can register the car under your name, or move it across the border is if you produce the original lien release letter accompanied by the original title along with a bill of sale.

The advice above regarding the checks is valid, provided the current owner isn't upside down on the loan (it happens sometimes, but let's not go there). You write one check to the lien holder (financial company) for the payoff and the other to the seller for the balance. The sum of the two checks will add to the total price of the Pepper.

Good luck!

993C4Smontreal

If I write a check to the lender (capital one) to clear HIS lean, and dont get the lien release letter (RLR).
I just paid off his lien? Or do I have to let the lender know that the letter goes to me???

ilko

That is correct, you pay off his loan. You and the seller can settle the details in the bill of sale and have the signatures notarized if it makes you feel better. If things go south somehow you can always let me know and I'll organize a brigade across the East River and pay the seller a visit

993C4Smontreal

lol...thanks for the brigade offer.....will the hottie in your Avatar be there blazing?

I think he mentioned he has a balance to pay himself. I guess the sale price is less then the loan balance....

I will get more info , call cap one, call the NY DMV...and get back to u.

Tango635

You can do the deal as described above, but when the seller pays the loan off, the bank will turn over the title to him. If he is honest, he will sign it over to you. Otherwise, you will have to call Ilko.

Or you can get a bank rep involved, let them know what is going on. Your bank transfers the money to capital one, capital one sends the title to you, or if you're financing, to your bank. Capital one will possibly require a contract of sale and some other documents, but the banks can work that out. This gives both sides more assurance, don't you think?

993C4Smontreal

PPI came back clean today and the mech said the truck is in good shape. I came up with a NEW plan with the seller; let me know if you guys can find any holes in it. The reason for this is because Capital One needs 5 days to issue a lien clearance letter, and I don’t want to sit in NY for 5 days waiting…

- The seller will drive the truck up to Montreal.
- We go to my notary and draw up a Bill of Sale (stating the below steps and terms). Using passport, DL, etc as ID.
- I issue a certified check payable to Capital One for the full amount of the outstanding balance and the loan account written on it (which is 1K more than the sale amount), and I get back 1K cash from the seller.
- The seller leaves me the truck, the keys, and the signed over title.
- The seller gives the check to CAP One back in NY, and 5 days later when he gets the clearance letter, he will fedex me it.
-Then I will have: Bill of sale, Lien clearance letter, and Tiitle…I can then proceed with my own steps…..

The only thing I cant control is the seller not sending me the clearance letter….but he has no advantage to do that.
Just to make me feel more comfortable, the seller will introduce me to his family her ein montreal. Either at their home or their place of business….

So, what do you think, have I covered my bases? Any other ideas, or flaws in my plan

Onami

You have to bring the car across the border and declare it, clear the title with US customs, pay the appropriate taxes, RIV fees and get the associated paperwork. The seller cannot bring the car into Canada and sell it here.

Personally, I wouldn't go through such a hassle over a lien on a car that is a dime a dozen unless it was a real bargain. In that case, I would just buy the car from the bank and store it in a storage place or another Rennlister's driveway in the area until the lien clearance letter was released...

993C4Smontreal

What diff does it make "where" he sold the car? PLus, I believe I can drive back down to US customs at the border from Montreal once I have all the paperwork ready and get the *** paperwork.

C4SJOHN

Your plan is good however you may want to think of doing a wire transfer of funds from your bank to Cap One for the loan pay off with the seller with you at your bank. Then the two of you ( buyer and seller ) get on a phone call Cap One and work out the details and have them mail you the loan release after the pay off. Have the seller signs over the current title release section, also a bill of sale and the truck stays with you. Deal done. Just something to think about... Cap One knows how to do this, you will not be the frist... talk with them.....

Onami

You asked for our help and I have given you the "facts" after importing a dozen cars myself. You really have no clue what you are talking about! You CANNOT bring that car into Canada for sale without US customs holding the title for 72 hours and then having the car properly entered through the RIV process at Canada customs. YOU must enter the US customs office and have the title stamped by them before crossing the border into Canada. Canadian customs will look for this stamp before processing the import paperwork. Also be prepared to PROVE what you paid for the vehicle, to hand them all paperwork from the process, your banking information, ebay username (even if you didn't buy it on ebay) and then sit there for an hour while they try and prove that you are lying about the amount you paid for the car...

If you do not follow my advice, be prepared to spend a few hours in the interogation room at the border explaining yourself and perhaps having the truck impounded or denied access to Canada. This is not a fly by the seat of your pants process anymore.

993C4Smontreal

Mark, dont misundersand me. I appreciate all of your valueable help. I am just playing devils advicate to better understand and simplify the deal.

Basically, when the seller enters canada, he is entering as a tourist, not to sell the car. Then we when we do the deal here, I will have to fax US customs the title, and 3 days later I will drive down to have it signed by them...

I will call US customs tomorrow to review the steps to see if it is possible to do it this way. FYI...It is RIV department that told me I can.