So I am in the process of purchasing a vehicle private party and I have a quick question for all of you.
My plan is to take out a small loan through my credit union to keep my money in savings, and to help build more credit. It has been quite some time since I have either sold or purchased a car so I was wondering how you folks best dealt with this.
My understanding is that any financial institution requires a copy of the title to ensure a clean title and valid vin to process the loan. No title copy, no loan check. It is also my understanding that the check must be cut to the seller and not just put in my bank account.
With our society the way it is today, and so many scumbags and scammers out there, what is the best way you folks have dealt with these transactions so both the seller and buyer are comfortable? I can have the buyer look at my credit union and it’s validity, but I am being told due to privacy laws they cannot discuss the transaction with a third party. I am also perfectly ok with the seller holding the title and car until the check clears, but bottom line is I need at least a copy of the title to provide to my CU to get the ball rolling.
In the past I’ve given the bank the vin and a copy of the title and they were able to either give me a certified check with the sellers name listed or cash.
If you are taking out a smaller loan the banks I’ve dealt with usually don’t have a problem just giving it to you in cash. I know Bank of America is weird and wants to physically hold the title but all my info is a little old as I haven’t taken out a loan in a while.
You might also be better off with a small personal loan if the rate doesn’t kill you. I think some banks have auto loan limits.
When a guy purchased our Colorado he had to take out a loan, but what I did was meet him at his bank and they handed the cash to me, which I imminently handed over to the hooker which was letting me blow coke off her ass.
Is it a local sale? Do what Josh just mentioned and have the guy go to the bank with you. Done deal.
If not, there’s only so much you can do to sort it all out. I’ve never had a problem buying a non-local vehicle and simply handing the person a check from my credit union and walking away. Some people simply demand too much and are unreasonable.
Well, my credit union is still at home (albany) due to being with them for such a long time and having student loans through them. They are fantastic and I do not want or need a new bank.
Rates are much MUCH better on an auto loan rather than a personal loan. It just doesn’t make sense to go that route.
I’ve never had an issue in the past, but I want to ensure the seller is happy and comfortable with the transaction. Being in his shoes I understand his concerns.
At this point, if I do not get a copy of the title to provide to my CU, I cannot move forward with the deal.
Sorry to hijack here. Lets say i want to buy a car, i have about 80% of it in cash, but i need 5,000$ more. I have a job/whatever, but i have little credit history. >1 year of building credit.
However i have a motorcycle , worth that amount. I can use this as collateral ? I do not want/can’t get a cosigner. Or am i completely wrong here.
The seller is going to be uncomfortable faxing a copy of the title? I would think that he/she shouldn’t be. When you hand over the check, be sure to give him a copy of your driver’s license. That should give him peace of mind, that he knows who you are and where you live in case you hand over a bad check.
---------- Post added at 11:40 AM ---------- Previous post was at 11:38 AM ----------
Theoretically, you can re-finance the motorcycle and take a $5k loan on it (depending on if it’s worth that much).
You can list it as collateral on the loan app, it might help get approved, as long as you have a pay stub showing how much you make your credit union most likely will approve for that small amount if your job doesn’t suck.
All he has to do is fax a copy right to the bank. He can call the bank and verify the correct fax number if he wants. The bank can not discuss your loan details with him, but they can supply him the fax number to send it to. This is common/normal practice.
As for them issuing you the check/$$; my CU just handed me a Certified Bank Check with the buyers info on it. If this is what he doesn’t feel comfortable with, you can meet him at your bank or a partner bank (CU network I’m assuming) and they can cut the check right there infront of him.
Good advice, thanks. I will speak with the seller and my bank on lunch. If he is ok with it I will have him send a copy of the title directly to the bank.
Your credit union will want the VIN and a copy of the title. If there’s a lien on the car your purchasing, you’ll need a lien release from his bank/CU to give to the DMV.
Just talk with your CU Loan Rep, they’ll take care of you right quick. Give you a certified bank check and the seller shouldnt require anything more. You’ll need to make up a simple bill of sale for the DMV and have the sales tax form filled out and signed by the seller too.
Understood. Thanks for the advice everyone. I’m eager to get this car in my possesion and hopefully it will be a simple process for both sides of the sale.
I have paid for a fair amount of my vehicles with fake certified checks and backed them up with fake ID’s giving the seller a false sense of security.
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When I lived in EA.
Just send him pictures of your hand holding cash people love that!
This is what I mean by people being over concerned or demanding too much. What does he expect you to do without a copy of the title? What does he think you’ll do WITH a copy? Register the car with it? GTFO.
Hopefully it all works out. This person just seems like a PITA.
Paulo! It’s all good man. It’s more me being a PITA and making sure everything is kosher.
I guess often times CU’s just treat used car loans as personal loans and to the seller it comes off as a cash transaction. My CU records the lein on the title thus needing the paperwork.
The seller is not a PITA at all, as a matter of fact everything is squared away and I should be taking delivery in the next couple of days if all goes well. It’s nothing special but let’s just say it will make a great winter/dd for the time being.
it was recently posted on this board. It’s red, and it’s a Nissan
