Go Back  The Hull Truth - Boating and Fishing Forum > BOATING FORUMS > Trucks & Trailers
Reload this Page >

Buying a private party truck with lien

Notices

Buying a private party truck with lien

Old 12-01-2020, 05:59 PM
  #1  
Senior Member (used to be B-Faithful)Captains Club MemberPLEDGER Admiral's Club Member
THT sponsor
Thread Starter
 
Join Date: Dec 2002
Location: Annapolis, MD
Posts: 18,195
Received 2,111 Likes on 1,057 Posts
Default Buying a private party truck with lien

If purchasing a used truck with a lien through private party deal, do you pay the lender directly? Set up escrow account? is Escrow.com a good way to go?
Old 12-01-2020, 06:32 PM
  #2  
Senior Member
 
Join Date: Jun 2016
Posts: 105
Received 9 Likes on 6 Posts
Default

Meet at the bank where the lien is held. Sign a bill of sale and have it notarized. Exchange enough money to pay off lien and then pay the rest later? That’s basically how we did our boat when we sold it. Except he paid in full and I waited for the title to come and then I mailed it to him.
Old 12-02-2020, 12:03 AM
  #3  
Senior Member
 
Join Date: Aug 2011
Posts: 1,654
Received 365 Likes on 288 Posts
Default

I would get the seller to contact the lienholder to verify they are holding the title.
Ask the seller to authorize a loan officer to talk to you so you can ask how they'd prefer to be paid. Easiest way to execute the sale is to get a bank to bank wire transfer if the payment will be large. If it's a small amount (under $10K), cash works.
Titles are often held in other locations and they might need to be forward the title to the loan officer to process the sale and release the lien. .Go with the seller to the bank and get them to transfer the title to you on the spot.
Old 12-02-2020, 06:30 AM
  #4  
Admirals Club Admiral's Club Member
THT sponsor
 
Join Date: Jan 2006
Location: Lindenhurst, New York
Posts: 9,684
Received 1,897 Likes on 1,002 Posts
Default

this is always a sore point when dealing out of state, also depending on the state the new owner may not be able to register until he has the lien release. Even if paid off it can take the bank 1-3 weeks to send the lien release out.

I went through this recently as a purchaser, obtaining an out of state vehicle that has a lien is a bit of a pain in the ass and one of the reasons people end up trading a vehicle in or buying from a dealer- for the ease of transaction. Most banks will not give you a lien release on the spot at a local branch so I suggest calling the bank that has that loan and asking them direct. Do not take the sellers word for it. This will also be complicated when you deal with a lender that has no branches like the manufactures own lending companies. I would not take the seller's word that the lien is paid off then who holds the vehicle and keeps it insured waiting for all this to happen??

I also went through this as a seller, I had sold a vehicle to someone one state away. Even though I had paid the vehicle off 2 weeks prior to listing it I had not received the satisfaction of lien papers.
He was very understanding and didnt mind waiting considering it wasnt such an easy vehicle to find. I drove the car to his house and removed my plates. He ended up waiting another 3 weeks before he could finally register it.
In NYS you can actually register a vehicle with a lien on it from a previous owner, it will stay on the title. You could then apply for another title or just keep the lien release with the title. In New Jersey you could not register a vehicle with a lien so he had to wait until the lien company sent it out.


Last edited by Raybo Marine NY; 12-02-2020 at 08:21 AM.
Old 12-02-2020, 07:09 AM
  #5  
Senior Member (used to be B-Faithful)Captains Club MemberPLEDGER Admiral's Club Member
THT sponsor
Thread Starter
 
Join Date: Dec 2002
Location: Annapolis, MD
Posts: 18,195
Received 2,111 Likes on 1,057 Posts
Default

I am going to look at the 2019 Silverado 2500 later today. Owner said he had a lien on. He is in Maryland also and the vehicle is registered here. I cannot register until lien would be released. I dont know who holds the lien. Possibly GM financial given that it is a 2019 truck. If I can get a good deal I am good with waiting for a lien release. I can still tow with my Tundra and not put it for sale until I would register the new truck. I just dont want to hand over ~$40K to the owner and not get a title to the truck

All this may be moot unless I can get a good deal. Owner's business is closing and he doesnt need the truck anymore. Hoping he takes a little more than trade in value. Just wanted to get an idea of the best way to handle before I see the truck in case I want to make an offer on it and hand over a deposit.
Old 12-02-2020, 07:40 AM
  #6  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Jan 2005
Location: Suburb of Sugar Tit SC
Posts: 14,342
Received 9,220 Likes on 4,977 Posts
Default

Definitely figure out who the lien holder is. Most financial institute have a standing policy for this exact situation.
Likes:
Old 12-02-2020, 07:53 AM
  #7  
Admirals Club Admiral's Club Member
THT sponsor
 
Join Date: Jan 2006
Location: Lindenhurst, New York
Posts: 9,684
Received 1,897 Likes on 1,002 Posts
Default

same state makes it easier , especially if you have the room to keep the truck at your home or business. Call the lien holder and ask them the best way to do it- again dont rely on the seller's information.

I would also say unless its a great deal consider the cost difference between a brand new one either 2020 or 2021. used trucks are on fire values wise
Old 12-02-2020, 07:58 AM
  #8  
Senior Member
 
Join Date: Nov 2016
Location: Atlanta/Destin
Posts: 723
Received 216 Likes on 142 Posts
Default

You need to verify that the lien holder has the title, there is only one lien on the title and the payoff amount as well. Closing his business may be an issue if he’s in financial difficulties, just something to watch out for. I’d consider paying the bank off and paying him his equity when the title arrives. That’s how we did it for years when buying a car from an individual, sometimes the bank will mail the title to the owner, despite being told to mail it to us multiple times.
Old 12-02-2020, 08:19 AM
  #9  
Admirals Club Admiral's Club Member
THT sponsor
 
Join Date: Jan 2006
Location: Lindenhurst, New York
Posts: 9,684
Received 1,897 Likes on 1,002 Posts
Default

some states you hold the title, it will just have a lien holder printed on it
this is how it is in NYS (unless its a lease)


Old 12-02-2020, 08:37 AM
  #10  
Senior MemberCaptains Club Member
 
Join Date: Jan 2003
Location: Charleston, SC
Posts: 3,428
Received 3,850 Likes on 1,719 Posts
Default

Find who is the lien holder and the balance.
Wire the payoff amount directly to them.
If the seller is "upside down" on the vehicle he also should wire the payoff balance to the lien holder.
If the seller has equity, pay him that balance in a mutually agreed fashion.
Take possession of the truck and notarize a bill of sale.
The lien holder will send the title showing the lien satisfied to the seller. The seller has to then execute the title and send it to you.
Old 12-02-2020, 08:37 AM
  #11  
Admirals Club Admiral's Club Member
 
Join Date: Sep 2014
Location: Florida
Posts: 1,854
Received 637 Likes on 342 Posts
Default

I did this twice before.

First time I went to the bank that held the note with the seller and I paid off the note, the bank and seller signed over title to me, and I drove the car home.

Second time I had my lender contact the sellers bank that held the note. They worked out the details with the other bank and told me what to do. It was a fairly easy transaction.
Likes:
Old 12-02-2020, 10:35 AM
  #12  
Senior Member
 
Join Date: Jul 2012
Posts: 1,762
Received 523 Likes on 325 Posts
Default

Sold my Denali to a top notch buyer here on tht a few years ago, out of state. He wrote a check to the lender for payoff amount. He flew one of his guys to the airport. He handed me a check to payoff, I handed him the keys, he drove off with my tags still on, I rented a car home. On the way home I overnighted the payoff check to the lender. A couple days later he fed-exd the tag back to me and I got a letter saying its paid off and sent copy to the buyer so they could register it in confidence there was no lienholder out there on it. I did a background check before just blindly doing the deal. Worked out great I think.

Old 12-02-2020, 02:35 PM
  #13  
Senior MemberCaptains Club Member
 
Join Date: Dec 2003
Location: Middle Sound, NC
Posts: 1,934
Likes: 0
Received 289 Likes on 180 Posts
Default

Originally Posted by coastboater View Post
Find who is the lien holder and the balance.
Wire the payoff amount directly to them.
If the seller is "upside down" on the vehicle he also should wire the payoff balance to the lien holder.
If the seller has equity, pay him that balance in a mutually agreed fashion.
Take possession of the truck and notarize a bill of sale.
The lien holder will send the title showing the lien satisfied to the seller. The seller has to then execute the title and send it to you.
I did this but I had the title sent to me and got a limited power of attorney to sign the title as the seller at the time I paid him and took possession of the vehicle. That way you don't have to chase down someone to get the car registered. I assume this works in other states.
Old 12-02-2020, 05:02 PM
  #14  
Senior Member
 
Join Date: Aug 2018
Location: West Point VA
Posts: 193
Received 102 Likes on 51 Posts
Default

When I sold my last truck I had the buyer meet me at my credit union that I had the loan through. He satisfied the note, left with a bill of sale and the truck. Once the note was satisfied, the CU was then able to release the title to DMV, which I then had to go to DMV, obtain the title, sign it over, and mail it to the new owner

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.