• Skip to main content
  • Skip to primary sidebar

Auto Trends Magazine

Car reviews, industry news, & advice.

TITLE

How to Resolve a Private Seller Lien

May 11, 2018 by admin 4 Comments

Remove the lien and take ownership of the vehicle.

2016 Ford Fiesta ST
2016 Ford Fiesta ST

When shopping for a used car, you stand to save money on your purchase when buying one from a private seller. Dealer markup can add hundreds to well over a thousand dollars to the price of a car, money you can save by negotiating directly with the vehicle’s owner.

If the owner is still making payments to a lender, then there is a lien on the car to remove before you can buy it. A lien essentially locks down the car’s title until the loan obligation no longer comes into play. The following are the steps to take to resolve the lien:

Step No. 1: Learn the Vehicle’s History

No used car deal should take place before confirming the vehicle’s repair history. That information is available through various sources, including Carfax.com, a company that compiles vehicle history reports specific to a car’s vehicle identification number (VIN).

A vehicle history report should show most of its repair history except the work that the owner performed on his own, work not reported by independent sources and anything else not reported by a repair shop. Importantly, if the car has been in an accident or damaged by a flood, then the history report should reveal that information. But they’re not perfect, so buyer beware. (Here is an excellent article that details the limits and sometimes the pitfalls with vehicle history reports — Limitations and Problems with Carfax or any Vehicle History Report).

2016 Honda HR-V
2016 Honda HR-V

Step No. 2 — Confirm Vehicle Ownership

Simply because an individual claims to own a car does not make that person the rightful owner. You need to inspect the title and run the VIN through the National Insurance Crime Bureau VinCheck to verify ownership.

VinCheck will confirm if a vehicle was reported as stolen, but unrecovered. It will also list whether it is a salvage vehicle, one that’s damaged or was seriously wrecked.

Step No. 3 — Inspect the Car With Care

Vehicle history reports can only reveal so much about a car. If you are handy, you can perform
the inspection yourself, otherwise, head to your mechanic and pay him to check the car.

Have the car placed on a lift and examine the vehicle’s suspension system, inspect the vehicle’s frame, review previous repair work and look for leaks from the engine, transmission and the coolant system. A mechanic can also pull up the check engine codes to look for potential problems.

No independent analysis will be foolproof, but your mechanic can offer his opinion on whether the car is worth your consideration and for the price you have in mind.

2015 GMC Yukon XL
2015 GMC Yukon XL

Step No. 4 — Negotiate Your Price

How much a private seller still owes his lender may have a bearing on your negotiation. However, if this individual owes more on the vehicle than what it is worth, you need not offer to pay that price.

Instead, your price for the car should be based on its current market value, its condition, mileage and vehicle’s trim level (content). Visit Kelley Blue Book to obtain its private party value. You can show your mechanic’s report to back up your offer.

Step No. 5 — Head to the Bank

Never give money to a private seller and have him handle the paperwork. Because there is a lien on the car, you should meet the seller at the bank and complete the deal in front of a representative.

Explain to the bank representative what transaction is taking place and have the seller ask for the loan’s payoff amount. Your funds plus whatever the seller still owes his lender will remove the lien, freeing the vehicle for a title transfer.

2015 Lexus RC F
2015 Lexus RC F

Let’s Make a Deal

Finalizing a deal for a vehicle with a lien on it is not always an easy process. That said, with persistence you may be able to conclude the deal and obtain a quality car for a below market price.


See Also — 8 Steps to Buying a Used Car

Photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: Ownership Experience Tagged With: BANK, car deal, CAR LOAN, CARFAX, DEBT, KELLEY BLUE BOOK, lien, TITLE, transaction, USED CAR

Buying a Car: Paperwork and Other Documentation

April 13, 2016 by admin 1 Comment

When closing a deal on a new or used car, paperwork and other documentation must be submitted and completed before the deal is finalized. And the last thing you want is to make a trip to the dealer only to discover you’re short one or more documents. The following list is composed of those items you may need in your possession as you seal the deal.

Hyundai Sonata.

1. A valid driver’s license. You carry your driver’s license with you, but is it still valid? Pull out your driver’s license before you head to the dealer to verify that it hasn’t expired. If it has, then you won’t be driving your new ride home until it has been renewed!

2. Your trade-in’s title. If you’re trading in your vehicle for another one, you need to hold its title. The title is clear for transfer if you own the car outright. Otherwise, if there is a co-signer listed or a lien on the vehicle, you’ll need to settle with this person first. Be careful here — if you make a mistake, you’ll have to touch base with the Department of Motor Vehicle to make a correction, a time consuming task. You might also contact your dealer ahead of time to find out how best to handle the title.

3. Your trade-in’s registration. A title is one thing, but your vehicle also must have a valid registration. Typically, that document can be found in your glove box along with the vehicle’s inspection and insurance information. While you’re at it, verify that the tags affixed to the license plate are current.

(See Also — How to Resolve a Private Seller Lien)

Chrysler 300.

4. Current insurance coverage. What you don’t want to do is to drive off the dealer’s lot without insurance. Typically, insurance is required if you borrow money to buy a car. Your lender will insist on coverage and certain inclusions at that. If you pay cash for a car or insurance is not a required purchase consideration, then you’re liable once you get behind the wheel of the car. Contact your insurer and arrange for coverage to commence the moment the deal is finalized.

5. Approved loan documentation. Unless the dealer is working out the loan details on your behalf, you need to do so at your end. Visit your bank or credit union to obtain loan information. At the same time, you can find a car loan elsewhere. Apply for a car loan and once approved, bring your loan documentation with you. If you’re obtaining financing through the dealer, then you’ll need to provide proof of income. Your dealer may also ask for your approval to obtain credit information and may contact your employer to verify employment information.

key lock6. An extra set of keys. Car keys and fobs are not paperwork nor documentation! But if you are trading in a car, the dealer will request all keys be relinquished. How odd it may seem if you have only one key or fob to turn in? Key fobs especially are expensive to replace and the dealer may subtract $200 or more from your trade-in price if you have only one key fob available.

7. Cash on hand. Yes, money also does not count as paperwork or documentation. What it does do is cover those costs not part of your loan package. In fact, it is simply better to pay for tags or other miscellaneous fees separately, instead of rolling those costs into your car loan. Furthermore, if you have down payment funds to supply, then you’ll need cash too. Better yet, leave the money in your checking account and supply a debit card as this works same as cash and offers an automatic receipt.

Final Thoughts

If your deal involves a trade-in, make sure your personal items are removed from the car before you relinquish same.

To sum up, the better organized you are, the shorter your time at the dealership. Unless, of course, you enjoy sitting in waiting rooms watching daytime television drama while your spouse drives home to retrieve the extra keys, the loan documentation, or other paperwork.


See Also — How to Transfer the Car Title of a Deceased Person

Filed Under: Special Tagged With: auto insurance, BUYING A CAR, CAR REGISTRATION, DOCUMENTATION, DRIVER'S LICENSE, KEY FOB, PAPERWORK, TITLE

How to Transfer a Car Loan to Another Person

November 10, 2012 by admin Leave a Comment

If you have a car loan and you want to transfer the loan to another person, is this possible? Well, that answer is not always clear cut it can depend on the policy of your lender, especially what is laid out in your car loan agreement. Still, that possibility remains and if you are interested in transferring ownership, the following procedures can make it happen.

Your Agreement

Your car loan contract should clearly spell out whether a loan can be transferred or assumed by a new party. Begin by examining your contract to determine whether this is possible.

key lockIf after examining the contract that you are still not sure, contact your bank or financing company for clarification. Get a hold of someone in the bank’s lending department that can pull a copy of your loan and make a determination.

Agreement Transfer

Your lender will most likely not allow for your auto loan to be automatically assumed by a new borrower. Instead, this individual may be required to apply directly to the bank for the loan transfer.

In this case, work with this individual to have the loan transferred. However, your bank may require that the future owner take out a new loan. Your purchaser will likely have to produce paperwork such as W2 stubs and income tax information to demonstrate creditworthiness. At this point, the loan application is between the purchaser and your bank.

Lender Approval

Do not attempt to transfer ownership of the vehicle to the purchaser until your bank has approved his loan application or accepted his transfer. The bank has a lien on your car anyway and the Department of Motor Vehicles (DMV) will not allow the car to be retitled until after the deal is done. As long as there is a lien on the car, the bank’s name will always remain on the title.

When your bank issues a new loan or accepts transfer of your current loan, you will receive notification that the loan has been transferred or paid off. If the purchaser is turned down for a loan, then consider the deal cancelled unless he can arrange financing elsewhere or pay cash for your car.

Loan Considerations

As long as the car is in your possession, continue to make payments on your car loan. If your purchaser succeeds in obtaining a new loan or a loan transfer, get a receipt from your bank showing that your loan is paid off. Notify the DMV that you no longer own the car, removing license plates, registration and personal information from the car.

Lastly, notify your auto insurance company that the car has been sold, a move that will immediately drop insurance coverage for the vehicle.

Special Note — Do not allow another person to take over payments without formally discharging your ownership duties. If something happens to the car — such as it is damaged or stolen — you will be held responsible.


See Also — Car Title and Personal Loan Collateral

Filed Under: Ownership Experience Tagged With: AUTO LOAN, BANK, BUYER, DMV, lender, SELLER, TITLE, transfer loan

Primary Sidebar

Recent Posts

  • The Golden Years: 6 Memorable Models From the Original Era of Muscle Cars
  • From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • The Mazda CX-5 Brings a Premium Touch to the Compact Crossover Utility Vehicle Segment
  • 4 Car Upholstery Cleaning Tips
  • The 14 Brands of Stellantis

Recent Comments

  • The Golden Years: 6 Memorable Models From the Original Era of Muscle Cars — Auto Trends Magazine on 5 Forgettable Cars From the 1970s
  • The Golden Years: 6 Memorable Models From the Original Era of Muscle Cars — Auto Trends Magazine on 7 Winter Storage Tips For Classic Cars
  • Drive Dissection: 2017 Nissan Maxima SR — Auto Trends Magazine on From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • The Premium Nissan Maxima Sedan — Auto Trends Magazine on From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • From Datsun to Nissan: 40th Anniversary of the Maxima Sedan — Auto Trends Magazine on Second Look: 2020 Nissan Sentra

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008

Categories

  • Auto Parts
  • Auto Shows
  • Automotive Career
  • Automotive News
  • Book Reviews
  • Car Tips
  • Classics & Discontinued Models
  • Commentary
  • Commercial Vehicles
  • Concept Vehicles
  • Dealers
  • Engineering & Technology
  • Fleet
  • Fun News
  • Maintenance & Repairs
  • Motorsport
  • New Car Reviews
  • New Models
  • Ownership Experience
  • Product Reviews
  • Special
  • Specifications
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

New!
Check out our Jobs Board!

via GIPHY

Subscribe to Auto Trends

Subscribe in a reader

Social Media

Visit our social media pages:
Facebook
Twitter
Google+
Pinterest

Where is Matt Currently Published?

The Carolinian (new car reviews)
NAPA Know How Blog
On the Road Again

Pages

  • About
  • Authors List
  • Automotive Brochures
  • Contact
  • Industry Jobs
  • Write
    • Style Guide

Categories

Recent Posts

  • The Golden Years: 6 Memorable Models From the Original Era of Muscle Cars
  • From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • The Mazda CX-5 Brings a Premium Touch to the Compact Crossover Utility Vehicle Segment
  • 4 Car Upholstery Cleaning Tips
  • The 14 Brands of Stellantis
  • Peugeot May Not Return to the U.S. Market After All
  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • GM Launches BrightDrop, Its Commercial EV Brand
  • The Refreshed and Handsome
    Lexus IS 350 F Sport
  • What We Know About the All-New 2021 Jeep Grand Cherokee L
  • The All-New and Formidable 2021 Nissan Rogue Crossover
  • Fuel-Efficiency and AWD Champion: 2021 Toyota RAV4 Hybrid
  • Midsize Performance Master: 2021 Hyundai Sonata N-Line
  • Performance Hatchback: The All-New 2021 Mazda Mazda3 Turbo!
  • NACTOY Finalists For 2021 Offer Familiar and Futuristic Choices
  • Super Trooper: Nissan Titan Pickup
  • Behind the Wheel of the Popular 2021 Toyota Corolla Sedan
  • Lucid Motors Completes Arizona Factory
  • A Robust Turbodiesel Comes to the Chevrolet Silverado 1500
  • Mid-Engine Masterpiece: The Eighth-Generation Chevrolet Corvette Stingray
  • Compact Performance:
    2021 Cadillac CT4-V
  • All-Wheel Drive Supplies the Nissan Altima With a Competitive Edge
  • Return of the Toyota Venza!
  • Lexus Brings a Convertible to the Gorgeous LC 500 Line
  • Stellantis Logo Revealed by Peugeot, Fiat Chrysler Ahead of Spring Merger
  • Preview: 2021 Nissan Rogue Crossover
  • How to Fix a Broken Rivian Vehicle
  • Cadillac Gets Most Things Right
    With the XT6 Crossover
  • The High Potency Dodge Challenger SRT Hellcat Redeye Widebody Coupe
  • The All-New Chevrolet Trailblazer Forges Urban Paths
  • The Small Infiniti QX50 is Big on Tech and Engineering Features
  • Toyota Brings the TRD Treatment to the Midsize Camry Sedan
  • The Kia K5 Outclasses Most Competitors, Including the Departing Optima
  • Can the Toyota RAV4 TRD Off-Road Handle Tough Terrain?
  • Subaru WRX Showcases Its Performance Chops
  • Infiniti Overhauls QX80 Trims and Makes This Important Safety Feature Standard
  • Ford F-250 Super Duty and a Trail-Stomping Tremor Package
  • A Cut Above: Mazda’s Mazda3
  • The Highly Efficient Hyundai Ioniq
  • Volkswagen Atlas Revels in its Strengths
  • General Motors Deepens Partnership With Honda, Takes Stake in Nikola
  • Smart Concept: Jeep Grand Wagoneer
  • More Than an Encore: Buick Encore GX
  • Got a Recall? There’s an App for That.
  • Refreshed Nissan Titan Makes Its Case
  • BMW M235i: Not Your Typical Coupe
  • Hot Stuff: Lexus RC F Sport Coupe
  • Will the Electric Vehicle Boom Create New-Found Dependencies for Foreign Minerals?
  • Rumors? We Got Them!
  • About Bollinger Motors, EV Startup
January 2021
S M T W T F S
 12
3456789
10111213141516
17181920212223
24252627282930
31  
« Dec    

Copyright © 2021 · News Pro on Genesis Framework · WordPress · Log in