Guys,

I didn't know where to put this, so I figured I would put it here since it will get the most hits. If it is in the wrong section, please move it.

I know this may seem like a newbie question, but I have never purchased a vehicle privately before as an outright sale using cash. I could use some advise. I'm doing some research online but I can't find what I am looking for (oddly). Long story short, I just purchased a Viper, but I am also looking for a cheap beater to use as a DD to get my insurance rate down.

1) If I meet up the seller and they have the title in hand, does that mean the vehicle does not have a lien? The last thing I want to do is pay a vehicle in full, receive the title, pay the seller then the vehicle ends up having a lien.

2) What is the procedure when purchasing the vehicle? Meet up, exchange cash, sign the title, then head down to the county tax office register the vehicle?

3) How can you tell if the title is fake?

4) I'm seeing articles online saying to check the mileage on the title. How is this possible when you're driving the vehicle around, and you received the title.....let's say...4 years ago? It won't match up.

5) anything else I should look out for?

 

Start here

http://www.dmv.org/buy-sell/buying-selling-faqs.php

You need a Bill of Sale that shows

• Date of Sale
• Make, Model, Year and VIN
• Current odometer reading
• Sale Price

Get a receipt showing you have paid the cash and have the seller sign it. I would include the VIN number on the receipt too.

Get the Title from the seller. Both the seller and the buyer are required to sign the title, and I believe also the mileage at the time of sale must be entered on the title.

Then head to your local DMV and expect to pay much taxes.

 

Just head down to you local DMV and ask them the proper steps. Some can be very helpful.

 

It does not mean it does not have a lien. Some states the "owner" has possesion of the title but there is a lien holder spot on the title. If it is blank and the owners name is the only one on title, then likely it is free & clear....BUT due diligence is is still required. It is possible there are others with interest in this vehicle such as a shop that he still owes money to etc...

 

I also would not use cash, unless you know the seller. Have him meet you at your bank, or use a wire transfer.

 

I believe the title will show last mileage when the title was tranfered, not current mileage... Current mileage will go on new title you get. The title will show the mileage the current owner bought the car at.
Also look on the title under the owner section (this will show owner(s) or liens holder(s).).... Make sure the owner is the one you give the cash to. Get receipt for cash.

 

Yep, just go to the bank, that's what I do, you can wire the money to him from your bank, it's safe for both parties. Everything is recorded on camera if the title turns out to be fake. Not likely as a criminal or someone who is trying to fraud you isn't going into a bank knowing he'll be on camera. Both parties signed and date the back of the current title, I usually just signed and date, VIN is already on the title. You can fill in the mileage later when it's time to take it to the DMV to register and pay your taxes. Done.

 

Also, it's less of a concern as a buyer than as a seller, but Cashier's Checks are no longer a safe way to buy big ticket items.

Wire transfer is the way to go, the downside is that some banks (including my credit union) cannot guarantee how long it will take for the money to be sent, nor how long it will take the receiving bank to record the deposit. I bought a car by wire recently, and even with upfront planning there was a several hour delay.

 

All,

What about a situation where someone else is selling a vehicle on the owner's behalf? I met with someone today who had the title in hand, but the title was under the name of a relative to the driver. The title was signed by the original owner, but the current driver did not transfer it to their name in order to avoid paying taxes.

When it comes to filling out a 130-U form, signing over the title, or paying the other party, is this ok? As long as the title is signed, it doesn't matter when it was signed as long as the date is on the sale date, correct? For those who are unclear of what a 130-U is, it is a form here in Texas that both parties fill out at the time of sale, and it lists the mileage, both signatures etc. It is used for tax purposes.

 

I'd be worried about this one - I don't know the legalities but I might feel more comfortable with a notarized affidavit from the owner (the name on the title) authorizing the "someone else" to sell the vehicle and transfer the title...and I'd still be worried.

 

I wouldn t do it unless the legal owner is present.
To be technical , the owner does not sign until the document is filled out. If DMV saw that title they would void it in New Jersey. No big deal because they would never know but between that and the owner not being there to verify the car is for sale and verify who gets the money I walk very slowly on this. For example , how do you know if the seller owes any of the money to the owner?