Is it good idea to buy a car of someone that still has finance on it? ?

Im intrested in buying a new car. The current owner has said that he still owes money on the car but will pay it off. What consequences could there be if i decide to buy the car and he doesnt pay of the remaining money and what should i be aware of

13 Answers

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  • Anonymous
    2 months ago

    You are buying a used car for it has an owner. So it is nearly new(BUT IT IS STILL USED). Would I do it?  Not on your life. Money is too hard to come by.

  • 2 months ago

    ONLY IF you do it in a credit UNION or BANK and they Check the titles etc. and ok it.. DO NOT DO IT ON THE SO CALLED ALMOST OWNERS WORD FOR IT..

  • Anonymous
    2 months ago

    Way back when I bought a car like that. I met the guy at his credit union, they verified how much he owed and that they had the title. I gave them the check from my lender made payable to him and the credit union. They released the lien and gave him the title and he signed it over to me.

    So I had the title minutes after giving them the check. From there, I drove to my bank and gave them the title which they held until I finished paying for the car.

    So its possible. But if the lender is not local and you can't get it when you give them the money its a bad idea.

  • 2 months ago

    Have him show you a clean title with no lienholder listed on it.  Have him show you a lien release letter from his lending institution.

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  • 2 months ago

    Don't buy it until you have  legal document that says the lien has been removed especially if you are paying cash. If you are financing it, make your finance company aware that there is a a loan outstanding from the seller and get them involved to send the payoff amount to the seller..

  • Eva
    Lv 7
    2 months ago

    You can't get clear title (meaning you don't own the car) until he receives a release of lien from the lien holder.  If you pay him in full and he doesn't pay off the lien holder, you have nothing. You can take him to small claims court, but that won't help you register the car. You can't register or insure it without clear title.

  • Scott
    Lv 6
    2 months ago

    It is a bad idea unless you work directly with the company he has his car loan through. Preferably that will be a local bank.

  • martin
    Lv 7
    2 months ago

    It could be a deal for you, if you offer to pre-pay-off the remaining balance on the loan, since that usually will be pre-paid at less than the amount, if the lender allows pre-payment without interest.

  • Anonymous
    2 months ago

    Ignorance is never your friend. Either wait until he pays it off and has a clear title in hand, or you work directly with his lender where you pay off his loan, give him any residual amount he is asking over what is owed, and get everything witnessed and notarized so that the title goes directly to you. 

  • y
    Lv 7
    2 months ago

    They can't give you the title if they owe on it, the bank or whomever has the title. No title in the guys name, no sale.   They can't sell own it because they don't actually own it.

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