Car title question

[happygirl]

I have the opportunity to purchase a used car from someone who simply wants enough to pay off the amount owed on his car loan. What I don't understand is how I will get a clear title. His currently has a lien on it. He said I can pay him and he will pay the bank or I can pay the bank directly, but I've never done anything like this so I'm not sure which would be best.

I just want to make sure that when the title goes into my name it is free and clear with no lien on it.

I hope this makes sense and thanks in advance for any advice.

[PetMom]

If you are in US go to your county govt. webpage and look under vehicle registration or car title.

A good county govt. website should have frequently asked questions page describing how to go about getting clear title.

Also, your State Department of Transportation may have something about this.

Make sure you get the answers from your county or state govt. and do not rely (which sounds like you are not) on the person selling you the car to tell you how to do the title transaction.

This is even more important when there is a lien on the title.

[maat55]

I would just meet him at his bank and get the lean release from his bank. Depending on the amount, they may want a cashiers check or cash for the transaction.

[happygirl]

He said it would be fine to just pay the bank directly. He just wants out from under the payment. I'll do a cashier's check or cash. The bank probably won't release the lien immediately but they will give me a receipt and I will get the title and a bill of sale from the seller. I'm also going to insist that he drive the car to my house where I'll put it in my garage until the lien release comes through and I can get it on the road.

This is certainly more complicated than some car deals, but it is a good deal and will make both of us happy if it all works out. I should mention I know this person and he seems like an upstanding person.

Cross your fingers for me!!!

[maat55]

You will get the lien release immediatly and be able to have the car put in your name. The only thing you will have to wait for is the new title without the lien.

You should go and have the title transfered right after you purchase it. You don't have to wait for the new title to drive it.

[happygirl]

I'm not sure about that Maat. I paid off my regular car (this one will be for DD) a few months ago. Even though I went to the bank with a cashier's check it took about a month to get the release of lien. She did give me a receipt for my payment at the time because I insisted, but said it had to be processed and would take about 10 business days (it took more).

But I can take the title showing the lien and still have it changed right away? If that's the case, along with knowing the loan was paid (since I would be the one paying it) we should be ok then it seems.

[maat55]

I'm not sure about that Maat. I paid off my regular car (this one will be for DD) a few months ago. Even though I went to the bank with a cashier's check it took about a month to get the release of lien. She did give me a receipt for my payment at the time because I insisted, but said it had to be processed and would take about 10 business days (it took more).

But I can take the title showing the lien and still have it changed right away? If that's the case, along with knowing the loan was paid (since I would be the one paying it) we should be ok then it seems.

The lien release is basically the reciept that shows the debt has been paid. The owner should have the title with the lien and sign it over to you, all you have to do is go to the tag agency and have it registered to you. You will later get your new title. This can be done that day. I live in Oklahoma, your state may have a different system, but surely not.

You may be thinking of getting the new title with the lien release. The new title will come later. You can get it registered with the signed title and the lien release into your name and on your insurance immediatly.