This isn't for a p-car, but I've come to value the advice given in this forum.

I'd like to buy a car from an out of state private party. USAA holds the title since the owner took a loan for the car.

I have a friend that is local that's going to inspect it for me. If that checks out it's off for a PPI. If that checks out.....

What process do you recommend when the seller does not have the title? What safeguards are available on my end to make sure everything goes smoothly?

Thanks,

QK

 

the seller should provide a clear title if not walk......that said some states require the bank to stamp "lien paid" when it is satisfied . I have done it in NJ where i went with the seller to the bank to pay off the lien and the title was stamped by the bank BUT your states DMV might not accept that title for transfer ......so check your mv laws

 

Simply pay the bank directly and USAA will distribute the excess funds to the seller and send the title to you.

 

What JKW911 said. I've done this.

 

^ Yup. I bought a car with a lien. My bank dealt with the seller's bank directly. The seller's bank sent the title directly to us. A separate check for the excess funds went to the seller.

 

Follow up question.

The car is a 2016 with 11.5k mi. Would you still bother getting a PPI?

Thanks

 

Kind of a tough call but honestly, I wouldn't. Anything small you can knock out and anything major will be covered under warranty. Just my .02 I'm sure people vary.

 

I've bought and sold cars with liens, just make sure to have the appropriate paper work to cover the transaction (i.e. bill of sale) pending the arrival of the title to you.

Walking away is the cleanest and easiest way to deal with things like this but sometimes you come across "deals" that it would be stupid to walk away from.

This is how I got my 997 C4S....nothing wrong with the car...just lots of people walked away from buying a car with a lien...go figure.

good luck!

 

Yep. This is the path I took as well. Painless.

 

you have to deal with the lien holder , it not hard
and better you do business with a co that knows all the legalities than just with a guy

 

Always get a PPI.

 

Yep, nothing to fear here. Have the bank send a copy of the title in advance so you can inspect. I've paid the bank the full sale price and also paid the bank their portion and the seller his portion and took delivery of the car with a signed sales contract. The bank will then mail the title directly to you.

 

+1