off topic - need your opinion

[Ronnie]

This is off topic and not about Reattas. I really trust your opinion and would like to get your input.

I need help in finding the right way to purchase a truck with a lien on the title.

Here's the situation:

I want to buy a vehicle from a local individual. He has a loan with on the vehicle with Chrysler Financia Corp. They hold the title to the vehicle. They do not have a local office so he must pay off the loan by mail. He needs the cash from the sale of the vehicle to pay off the loan in order to get a clear title to give to me.

He wants me to give him a cashiers check for the purchase ($7000) and in return I get a bill of sale, registration papers and the vehicle to take home. Then he will send a check to the loan company. When he gets a title with the lein released he will mail it to me. That will then allow me to title and register the vehicle in my name.

Is this the proper way to handle a transaction like this where a clear title is not available? Has anyone here dealt with a transaction where you could not go to the bank and pay off the loan and receive a clear title on the spot?

I'm not worried about waiting a few days to get the title but I don't want get burned in this deal either. Any lawyers here that want to give their opinion?

Thanks in advance for your help.

[Guest EDBS0]

and if he keeps the money and simply says "thanks sucker" the repo-man shows up in 10 days and

[Nittany]

Others will add their experience with more/better details . . . but start with 2 checks, one made directly to Chrysler Financial for the payoff (call and get an exact figure to the penny per day), the balance (less a security deposit of 10% to 20%) to the seller with a written agreement detailing all the components of the transaction. You want to hold a percentage of the selling price as Security until he delivers the title indicating the lein to be paid off.

[Guest Mike_s]

Call Chrysler Financia Corp and get their take on things,ie will take take a check from you or only the owner?.

On the other hand they might not give you too many specfics because of privacy concerns.

They've probably seen this issue many times over.

[JohnD1956]

I would ask for a payoff letter from the lein holder as proof of what is owed to them, in order to get a release of the lein. In NY, that release letter with the original title ( not a new one) is all that's required to transfer ownership. The next title document is then issued in your name and the prior lein would be removed. And most commercial lein holders know that time is of the essence in a situation like this, so they should be willing to work with you, BUT I found a bank that would not work with me at all, on a vehicle that had been sent to a junkyard. Naturally I did not tell the fools which junkyard it was in either.

[Ronnie]

Thanks for all your replies.

Would the following be an acceptable way to handle the transaction in my original post?

1. The seller gets the exact amount of payoff on the vehicle.

2. I give the seller a certified check for the payoff amount made out to Chrysler Financial and make a note on it with the vehicle id information and the account number that it should be credited to.

3. The seller gives me a bill of sale stating the vehicle id information and details, the amount I have paid and the balance remaining. It would also state that a title with the lien released would be presented to me within a specified amount of time. We have it notarized.

4. The seller receives the title from Chrysler Financial with the lien released and signs it over to me. I pay the seller the balance owed on the vehicle and take possession.

Anything else I should do? Will I be protected with this arrangement? Any comments are appreciated...

[Guest weewilly]

call chrysler with seller there. they will make arrangements to assure sale is done properly.

[JohnD1956]

Sounds like a good plan. I'd recommend you take posession of the vehicle when you give the seller enough to pay off the lein. If he tries to reneg then at least you have something of value.

[Ronnie]

The following is what the seller and I have agreed to. What is your opinion of how we are to carry out this transaction?

1. The Seller will call the Lien Holder (Chrysler Financial) and request the 10-day Payoff amount for the loan and request the address where the payoff check should be mailed.

<span style="font-style: italic">(A 10-day payoff is the amount required to payoff the lien 10 days from the time you call them. The loan accrues interest everyday so you have to send enough money to cover the interest while the check is in the mail.)</span>

2. The Buyer will obtain a cashiers check made out in the name of the Lien Holder (Chrysler Financial) for the amount of the 10-day payoff. On the check will be written the make, model and VIN number of the vehicle, and the Seller’s loan account number.

3. The Seller will write a note to the Lien Holder stating he/she wishes to pay off the loan and have the title mailed to him with the lien released. The Seller will write on the note the details about the vehicle (including the VIN number) his loan account number, his name and the mailing address where the title should be sent.

4. The Seller will mail the cashiers check and the note to the Lien Holder (Chrysler Financial) by Certified mail.

5. The Buyer will give the Seller another cashiers check for the remaining balance of the purchase price minus $1000.00 to be held in lieu of receiving a clear, signed title.

6. The Buyer will receive a signed bill of sale (Seller will receive a copy) stating the following:

a. Details about the vehicle including the VIN number

b. Full purchase price

c. One thousand dollars ($1000.00) is still due on the vehicle

d. The approximate date when a clear title will be turned over to the Seller.

7. Buyer will take possession of the vehicle and park it until the Seller receives the title from the Lien Holder.

8. The Seller will notify the Buyer when he receives a clear title and sign it over to The Buyer. The Buyer will present a certified check to the Buyer for $1000.00 to complete the transaction.

[JohnD1956]

You did good. you have the vehicle and everything in writing and the seller has motivation to bring the deal to conclusion by providing clear title. Couldn't ask for more in my opinion, but I'm not a lawyer.

Still I'd be comfortable with all of this.

[Guest DAVESWF]

Item #7--Shouldn't the words 'SELLER' and 'BUYER' change places ?

[Nittany]

I agree Dave! Otherwise looks good . . .

[Guest CL_Reatta]

Ya, knowing the seller still has the car while your the one paying it off for him seems kinda risky... but then again if I were a seller I would not give up my car with money still owed.... just my opinon, maybe would have been best to give the seller only the amound needed to pay off the vehicle, then give the amount due when you go to pick up the vehicle, I mean $1k is a lot, but isnt a lot at the same time?

[Ronnie]

DAVESWF

You are absolutely right. That is the reason I ran it by you guys before entering into the transaction. The help and information on this forum is great.

Thanks to everyone who have commented so far. Any other comments are welcomed.

[Ronnie]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: CL_Reatta</div><div class="ubbcode-body">Ya, knowing the seller still has the car while your the one paying it off for him seems kinda risky... but then again if I were a seller I would not give up my car with money still owed.... just my opinon, maybe would have been best to give the seller only the amound needed to pay off the vehicle, then give the amount due when you go to pick up the vehicle, I mean $1k is a lot, but isnt a lot at the same time? </div></div>

If I had given him the amount to pay off the truck and not received the truck, he would have gotten a clear title to his truck at my expense. Then if he had decided not to sell or otherwise it would have left me with only the option of suing him and I didn't want to rely on a bill of sale to get my money back in a court of law.

I would rather have the truck locked up in my garage with a bill of sale if I need to go to court. I have always heard that 90% of ownership is possession.

BTW, this is an eBay transaction even though he lives fairly close to me. That is one reason I am cautious.

[Guest CL_Reatta]

I was refering to doing all that with you having possesion of the car already

[Ronnie]

Thanks to everyone for your input.

The first seven steps of the plan went perfectly. I see no reason that step eight should be any different. I think there is enough incentive for us both to want to complete the deal in a timely manner.

The seller seems to be a great person to deal with and the vehicle was exactly as described in the eBay listing.

Thanks again!