Indiana Jones

I have found a car that is for sale with a few hurdles. The first being the main reason I am posting.

-Lien on the car - Holding period of 10 days with owners credit union. Seller's intention is to use funds of sale to satisfy the lien.
-The car is in a remote town and a proper PPI is proving to be difficult - although I have found someone that is able to help (not a full ppi).
-Shipping, etc. are added costs and inconveniences.
-Car is priced accordingly although there are a few issues with it that would need to be sorted.

I am certain there are services that can handle (escrow money etc.), but am unaware of them. I do know that some dealers handle private party deals for a fee, however, not sure of if they can do so with a lien. All help would be appreciated.

Thanks
Richard

Road King

My only advice is that if the deal becomes complicated enough to cause any discomfort or stress, it's probably not the right deal. A good PPI is not mandatory, but it was for me as I was a first time Porsche buyer and didn't have enough experience to know what I didn't know.

I did my transaction in a Bank of America lobby and the seller had title in their possession, so relatively painless.

Porsche made 22,000 996 Turbos, so there will always be another car...

2fcknfst

This is very accurate.

Never would I give the seller of a vehicle money to satisfy a lien before taking delivery of a car; he has already had problems with his bank, so who are you to him?

Sage advice - find another one, there are a lot out there.

s65e90

That's pretty common practice. How else do you sell a car w/ a loan? And where does it say he has problems w/ his bank?

OP. I've sold many cars. If you confirm with his bank the lien and amount, draw up a bill of sale between you and him. You leave with the car and bill of sale. He has your money. Once money clears and new title is issued you should get it and be done. I've never had any issues.

2fcknfst

Maybe I misunderstood - a 'lien' in Canada only comes when someone has been delinquent on the original loan, and must be filed separately and then have confirmed delivery notice to the loan holder.

Buying a car with a 'loan' on it sounds much better than 'lien'.

05 Turbo S

You should talk to the CU or Bank who holds the Title/Lien
and ask how they would like to see the transaction to occur so that all parties are satisfied. They do this stuff regularly and work with practically all institutions. A long distance PPI and shipping are other hurdles entirely. For me personally long distance buying is far too complicated, for others it is normal. I always like to use the KISS principle.

mffarrell

This!

TrillyPop

I've done it this way also, never any issues. Draw up a bill of sale (legal document), both sign it, give seller money, take the car.
Of note, I have always received the title in this type of transaction. Although the bank "holds" the title, the physical title of the car should be in the owners possession, right? When you apply for the loan, one of the conditions is that you email the bank a copy of the title within a certain period of time. This is basically to prove that the funds were used as intended, to purchase a car. I have a loan on one of my cars currently and I am holding the title. When the loan is satisfied, the bank sends a letter indicating so and the bank can be removed from the title as a co-signer.

Road King

The last car I sold that had lien was a 2008 BMW 335i. In preparation of selling, I paid off the car (.9% financing, so why not), and had the title in hand before I advertised the car so that it would be painless for a buyer at the time of transaction.

I understand not everyone can simply pay off a note, and we all have different comfort levels when it comes to buying/handing over money, I was just sharing my thoughts...

pfbz

Trust is important in a private party transaction... If you don't trust the seller, walk away now.

But clearing a loan (yes, in the US, we call that a lien and it does not imply default) through a credit union is not uncommon. If the transaction is for more than the lien, then you make one payment directly to to the bank and a second payment for the balance to the seller. That insures the money actually goes to clear the lien rather than something else.

A three-way phone call with the credit union, the seller, and yourself might go a long way to giving you some comfort level on the transaction.

Another minor issue is that if a seller doesn't have the funds to clear the lien in advance on a comparatively reasonably priced car like a 996 Turbo, it always makes me wonder if there needed maintenance items that also didn't get done due to lack of funds?

Indiana Jones

Thank you for all the input and advice thus far...to address some of the comments left already.

RoadKing, I agree if the transaction causes undue stress, it may be better to walk away. That is where I am at now, although I am developing a second wind to try and get the transaction done. It isn't one thing that is an issue, it's the multitude of several hurdles. A PPI is important as I'd be buying sight unseen, and the car is not in perfect condition (some small issues were noted by the seller). Spoiler throwing code, Codes P0410, P1411, and 4440..all seem to be adjusted for in the price.

2FAST/05TURBO - I think this was touched on, but re: the lien, the bank is holding title, no issues with his bank other than the Credit Union does not have appear to have a way to protect our interests. I called them, they will receive my wire, and apply it to his outstanding balance, and then release the title to him (10 days later), then he will need to forward it to me.

Trilly - Im not too concerned other than I cannot just take possession of the car at the time of transaction due to the fact that I am out of town.

pancing

this right here would be a red flag to me, i would walk. If it were any other year i would still be hesitant. There is a huge amount of trust here to a stranger during trying times. I may be paranoid here but theres a chance dude might take the title and double dip, sell the car to someone else, and have you chase him down.

s65e90

How the hell is he gonna sell a car he doesn't have possession of? Again, this is very common. Confirm lien with lien holder, draw up bill of sale, take car and get title when funds are cleared and new title with no lien holder is issued.
OP you have to take the car. Why would you wait? Just give a deposit to hold the car and then pickup when you can. Always better to put eyes on the car also.

Indiana Jones

I trust the Seller, as much as I can "trust" a person I do not know. He has been nothing but straight forward and accommodating regarding his car and potential solutions to an out of state transaction. With that being said, for better or worse, law school taught me to leave trust out of business transactions and to protect all parties in a fair and equitable manner.

I do not want the Seller to jump through unnecessary hoops or expose himself, nor do I want to expose myself. I do think it can be done remotely, but need the help of someone outside the credit union, as they stated they could not help.

Indiana Jones

It boils down to risk vs. reward...and the risk outweighs the reward here. Only way we can move forward is with professional assistance. I will search for some ways in which this can be done, otherwise the transaction is on hold.

Thank you for all your help thus far guys.