Buying a car with lien

[krassyg]

Found a car on eBay that I like but the seller's credit union has a lien on the car and holds the title (AZ). As per him I have to send the payment to the credit union that will then release the title to him and he'll sign it over to me. Is that the proper procedure or am I asking to get scammed? Ebay does have some kind of protection but I've never done this before and I am a bit hesitant.

 

[quincy]

Found a car on eBay that I like but the seller's credit union has a lien on the car and holds the title (AZ). As per him I have to send the payment to the credit union that will then release the title to him and he'll sign it over to me. Is that the proper procedure or am I asking to get scammed? Ebay does have some kind of protection but I've never done this before and I am a bit hesitant.

Do you live in Arizona?

Do you think it’s a good idea to pay off a stranger’s car with only a promise from this stranger that he will sign the title over to you?

 

[krassyg]

I don't but I really like the car, lol; even the color is perfect. Can I get the credit union to transfer the title directly to me somehow? I don't live in AZ but I am going to Vegas anyway; figured I'll get the car as well. Two birds...

 

[quincy]

I don't but I really like the car, lol; even the color is perfect. Can I get the credit union to transfer the title directly to me somehow? I don't live in AZ but I am going to Vegas anyway; figured I'll get the car as well. Two birds...

The safest and best way to purchase the car is to go to Arizona, inspect the vehicle, and then go to the credit union and DMV with the seller of the vehicle (or meet the seller there) to payoff the lien, get the title signed over to you, and register the vehicle.

I would be very wary of any fellow asking you to pay off his loan first.

 

[krassyg]

Yes, that gave me a pause as well. He is telling me that since the title is electronic the loan has to be paid off first before the credit union releases the lien to the AZ motor vehicle and then he'll be able to transfer the title over to me. Planning to do it locally anyway but I don't see how it makes any difference since I have to pay off the loan first, then go to the AZ motor vehicle with the seller. What is stopping him to just bail out after I pay off the loan? Can the credit union somehow release the title with my name to the motor vehicle?

 

[NeilTheCop]

From bitter experience, a car/truck/bike that has any issues whatsoever with the title, I walk/run away.
Just not worth the risk, but if you're determined it may be worth checking the title status with the Arizona DMV
https://azdot.gov/news/buying-or-selling-used-vehicle-be-prepared-and-be-safe
I can't remember how many times I've gone to buy a car and have the seller say "I'm selling it for a friend" or "I keep meaning to have the title put in my name" or the classic "I can't find the title but the DMV will issue a new one, no problem"

 

[adjusterjack]

I have over 50 years experience buying and selling cars and I have heard and avoided all the BS stories.

I agree with NeilTheCop.

Run away from this deal. Don't do it. Or I guarantee you'll be back here sobbing "What are my rights?" And, guess, what, you won't have any because the scammer is in the wind with your money and you are saddled with a piece of crap car that you can't get title to.

One more time.

Don't do it. No car is worth the screwing you'll take.

 

[krassyg]

From bitter experience, a car/truck/bike that has any issues whatsoever with the title, I walk/run away.
Just not worth the risk, but if you're determined it may be worth checking the title status with the Arizona DMV
https://azdot.gov/news/buying-or-selling-used-vehicle-be-prepared-and-be-safe
I can't remember how many times I've gone to buy a car and have the seller say "I'm selling it for a friend" or "I keep meaning to have the title put in my name" or the classic "I can't find the title but the DMV will issue a new one, no problem"

I did check the title and his story checks out; there is a lien on the vehicle. I do agree that it will be more hassle than it is worth it; the only way I would do it if there was a way for me to get the title transferred in my name without his/her participation or at the same time I am paying off the loan.

 

[quincy]

I did check the title and his story checks out; there is a lien on the vehicle. I do agree that it will be more hassle than it is worth it; the only way I would do it if there was a way for me to get the title transferred in my name without his/her participation or at the same time I am paying off the loan.

The seller could be able to do most of the sales transaction online in your presence while at the credit union, through the AZMVDNow.gov site link provided by NeilTheCop. Make sure you go to Arizona during both the credit union’s and MVD’s business hours.

You should go with the seller (and with a trusted mechanic and/or a friend or two accompanying you) to the credit union to pay off the lien and the seller could at that time complete a “sold notice” online with the MVD and then transfer the title to you.

You can contact the Arizona MVD for more information.

In order to best protect yourself, however, you need to avoid blindly handing over money to this unknown seller. You will want to make sure that the vehicle the seller has is actually the vehicle that was pictured in the ad, and that the vehicle is all that the ad promised it would be. If the vehicle is being sold in operable condition, it is smart to test drive it, and have it inspected.

After seeing the vehicle and paying off the lien and transferring title, you will at that time have very little legal recourse if something goes wrong later with the vehicle so make sure this is really what you want to do.

Purchasing used cars from private sellers is done all the time, generally without issue, but buying from an unknown out-of-state seller definitely makes the transaction a riskier one. I think you would be smart to find a vehicle in your state, in your area.