Best Way To Protect Yourself from Car Liens

[rayf01]

I'm looking to buys a used vehicle from a private party. I do not know them personally, this was through Kijiji.

They told me they are selling the vehicle for slightly less than what they currently owe on it. I have not asked yet or conducted a Lien check which I will before purchasing. For all I know they may have an unsecured line of credit and no lien on the car.

However, if there is a Lien on the car whether through a financial institution or the dealer, what is the best way to protect myself? I want to make sure they put the money I give them on the Lien, as well as they take care of the rest of the money owed so I don't end up with the difference afterwards.

From what I am told a letter stating they are responsible for the difference isn't the best method. I was thinking of finding out who the financial institution would be and making the certified check out to them, as well as speaking with the institution or going in to them with the current owner to ensure the difference lands on their plate in the end and not mine?

[Skybuster]

I'm not sure of the dollars involved, but with a transaction of $10k or so, I'd use a lawyer. This is what they do is handle these types of transaction. They take your money and ensure the bank is paid directly. You are protectd, as the seller is.

I wouldn't accept any other way unless you are able to pay the bank directly, but even then, how do you ensure they don't keep the car once you pay the bank?

[PGH]

You can't make a certified cheque to the lienholder because the lien isn't in your name. It works in this order: You have to pay the seller the agreed amount, the seller then has to pay the lienholder the balance on the account and this will remove the lien on the vehicle. Your best bet is to facilitate this transaction at the bank or credit union of the lienholder (i.e. servus).

The lien will not be removed until the entire amount owing is paid in full by the owing party (the seller in this case). So lets say there is 20k owing on the car. You agree in private to pay 15k for it. The seller has to then cough up the remaining 5k difference. Once the lienholder gets the 20k, the lien is removed. And then ownership can be transfered to you!

Yes, it is possible to find a seller who is honest and willing to this - often times the seller doesn't even know how the process works, so please do your research, talk to your bank and talk to the lienholder and they will help you facilitate the transaction.

[rayf01]

I did speak with my banker and he said that I could make the certified check to the the car seller & Lienholder to ensure the lienholder receives the money. However I wasn't entirely sure on the remaining.

I think what I will do is find out if there is a lien, and go to the lien holder with the owner to ensure its paid off and in full.

[NoKlu]

Just go find another vehicle,no lawyers,no banks,no worries.

[PGH]

I suppose they would take your cheque, but that doesnt mean the lien is paid in full because the cheque is just an amount that you agreed to pay for the car and not the whole amount owing. Unless the cheque was for the full amount owing on the account, the lien wont be removed.

I think you've got the right idea anyways, hope it goes well!

[rayf01]

Just go find another vehicle,no lawyers,no banks,no worries.

The likleyhood of finding a used vehicle that is 1-2 years old in a private sale without a lien is very slim..... Most people finance a vehicle and don't pay cash for it.

[tbiddy]

I bought a truck from a member on here (great truck BTW). We made the certified cheque out to him and the bank (the lien holder). Met him at the bank, gave him the cheque, he went into the bank, came back out and gave us a bill of sale with a letter from the bank. We went over to registries and got a permit to drive it home.

[rayf01]

Awesome, thats what I was thinking would have to happen. You've confirmed it.

Now I just need to figure out if its not through a bank and through a dealer how that would happen. I would assume the same way...

[CaberTosser]

I once sold a 1999 Honda CBR 1100 XX for less than I owed on it. I was up front with the buyer about it and had about 2.5 payments to make to clear the title for him. I did so, but there's no guarantee that other people would do the same. When I mentioned it to the finance company when I was getting the balance owing over the phone the woman freaked out and told me that I couldn't do that. I told her it was a bit late at that point as I had already sent them the full amount I got from the buyer and I was still making the payments; their lien was technically still valid and I hadn't defaulted so she would just have to deal with it. I phoned the buyer and let him know when I had the lien cleared, I may have mailed him proof as well.

[Skybuster]

I once sold a 1999 Honda CBR 1100 XX for less than I owed on it. I was up front with the buyer about it and had about 2.5 payments to make to clear the title for him. I did so, but there's no guarantee that other people would do the same. When I mentioned it to the finance company when I was getting the balance owing over the phone the woman freaked out and told me that I couldn't do that. I told her it was a bit late at that point as I had already sent them the full amount I got from the buyer and I was still making the payments; their lien was technically still valid and I hadn't defaulted so she would just have to deal with it. I phoned the buyer and let him know when I had the lien cleared, I may have mailed him proof as well.

If only everyone could be as honest and above board with their dealings the world would be a better place. Unfortunately I have personally been burned in the past, to the tune of $5000, so I am too aware of the those that aren't as honest. I don't know you Caber, but I'd be honoured to.

[A303]

Both you and the seller should go to the lending institution together and settle the transaction. I would make sure the vehicle is Paid In Full before I'd sign. I bought a quad like that once and it worked out fine.

[artie]

I bought a car from a lease back company. I paid them outright for the car. The lease back company then sent me a bill as the previous owner had bounced two cheques. The lease back manager even lied and said that I had agreed to pay for the bounced cheques. I was stuck so I put pressure on the previous owner and he finally paid for the bounced cheques. What I learned was to trust no one and get everything as legal as possible.

[blackonblackfx4]

Get a certified Alberta motor vehicle sales profetional to help you find a vehicle. If you send me a PM I'd gladly help.

[tara_13]

Look up AMVIC and there's a number for consumers that you can get advice. You can find out right away if that car is on a lien.
Then you will know you cant purchase it til it is cleared.

[keeks]

a certified Alberta motor vehicle sales profetional

OMG, is that what they are called now? Very Profetional.

k

[blackonblackfx4]

OMG, is that what they are called now? Very Profetional.

k

Kay, I made a spelling mistake. We've all done it before, calm down.

[keeks]

Kay, totally calm now. lol. I was just jabbin the spelling error. However, I have never considered car salespeople professionals. I hope you are, and that would be a breath of fresh air. But I always think about the "I have to go talk to my manager", as double talk for, "Me and the manager are just gonna slip out back and eat some babies."

k

[blackonblackfx4]

Kay, totally calm now. lol. I was just jabbin the spelling error. However, I have never considered car salespeople professionals. I hope you are, and that would be a breath of fresh air. But I always think about the "I have to go talk to my manager", as double talk for, "Me and the manager are just gonna slip out back and eat some babies."

k

Hahahahahahaha " me and my manager are gunna slip out back and eat some babies".

I try to not be quite so evil with my clients, but know where you're coming from with all the greasy high pressure salesmen.