Used car sale transaction process

[Jerry1]

Au contraire here. I had to trade a 2005 Colorado in 2016 because the frame was so rusted that it would not pass state inspection. I have a friend with a 2011 Silverado with the same problem... the frame is so rusted that it won't pass state inspection. They used a lot of brine rather than salt in Vermont and it plays havoc with vehicles that are not undercoated every other year or so.

Wow, brine must be way different than the rock salt they use here. I’m not saying it doesn’t matter, but we don’t see rusted frames like that.

 

[mojavesue]

You might stop by a few local new car dealerships. You might end up paying a little bit more but at least you know who you are dealing with. You can also let them know what you are looking for and if they get something traded in they will call you. Some dealers will sell a car to you that would otherwise just get sent to auction. A couple of years ago we were at a Subaru dealership and an older lady had just traded in a 98 Outback that was in very good condition. I asked a salesman what they gave her for it and I offered them a few hundred dollars above that and I walked out with a very nice car!

 

[JoeWras]

You might stop by a few local new car dealerships. You might end up paying a little bit more but at least you know who you are dealing with. You can also let them know what you are looking for and if they get something traded in they will call you. Some dealers will sell a car to you that would otherwise just get sent to auction. A couple of years ago we were at a Subaru dealership and an older lady had just traded in a 98 Outback that was in very good condition. I asked a salesman what they gave her for it and I offered them a few hundred dollars above that and I walked out with a very nice car!

Good point. I have some time, not an emergency here.

Normally I view the relationship with a dealer as confrontational. I can always try to turn more cooperative, i.e. have them do some legwork.

 

[Dreamer]

My son just bought a car off of Facebook Marketplace yesterday. He wanted a car to drive back and forth to work, which is about 5 miles. He paid $5000.00 and I assume that he gave them cash. They met at a public place. I think that he said Home Depot. He saw the car online Saturday night and called the lady and she said she would meet him after church.

He said the lady was late 70s and her ex-husband came with her. My son said that they were talkers and he knows their whole life story. If you knew my son, you would know that he would not think this was a good thing. He was just interested in buying the car and getting the heck out of there.

 

[threeonesix]

Why would you feel any safer meeting in a bank parking lot than meeting in a dark, unoccupied parking garage basement? Just meet in the police station parking lot. Problem solved.

 

[pb4uski]

Why would you feel any safer meeting in a bank parking lot than meeting in a dark, unoccupied parking garage basement? Just meet in the police station parking lot. Problem solved.

I can't have a teller verify that the $100 bills the buyer is giving me for the car are not bogus in a police station parking lot. When we go into the bank I can deposit the cash, sign the title and hand the buyer the keys. I walk off with a deposit slip.

Can the officer on duty verify the cash is legit? I'd rather walk out of the transaction with a deposit slip than with $10k of cash that I can be robbd of before I get to the bank to deposit it.

 

[JoeWras]

Banks tend to have cameras. Dark, unoccupied garages usually don't.

 

[COcheesehead]

I haven’t sold a car direct in years, but we sell on FB Marketplace and we have the transaction go through Venmo right in front of us. It can’t be reversed once sent so as a seller, that works for us. As a buyer, you just better hope you sent it to the right account. LOL.

 

[homestead]

What is the best process if the title still has a lean on it?

 

[COcheesehead]

What is the best process if the title still has a lean on it?

I don’t think you can sell a car with a lien on it. They have to have clear title.

 

[homestead]

I don’t think you can sell a car with a lien on it. They have to have clear title.

I'm thinking they would use the sale to remove the lien so you can buy it.
What is the safe way to do this?

 

[COcheesehead]

I'm thinking they would use the sale to remove the lien so you can buy it.
What is the safe way to do this?

When I was young and stupid, now I am old and stupid, I sold a car with a lien on it thinking I could just pay it off afterwards. The problem was the new owner could not register the car with a lien on it. So I had to pay it off first, then she could register it.

 

[ctbktb]

I'm thinking they would use the sale to remove the lien so you can buy it.
What is the safe way to do this?

Provided the lienholder is local, you and the Seller go to the lender with your Bill of Sale and Title. You, the Buyer, handover a cashiers check for the purchase price. The lender cuts a check to the Seller on the balance owed to them. Lender gives you a lien waiver. Buyer signs over Title. Done.

 

[Qs Laptop]

But let's say I find a sane person to sell me a car for $4k. What's the process?

- Meet at a public place?
- Pay cash, or meet at local credit union to cut a check?
- Meet at DMV to do the title transfer?

I'm actually pretty completely clueless in this area and could use some ideas and opinions.

All of the above. I just sold a car on Craig's List.

The buyer wanted to pay cash and have me sign the bottom of the title as "Seller" hand him the title and then he promised to go to the DMV and complete the title transfer. No, no, and no. I have no assurance he will follow through on transferring the title. I could be liable for parking tickets, or worse, if he were to be involved in an accident I'm sure the insurance company would come after me, the owner of record of the vehicle.

As a buyer I assume you want to be sure you get the title in your name. Therefore, I would suggest meeting at the DMV (which is a public place with cameras), paying cash, and transferring the title. Just get it all done at once.

 

[JoeWras]

Great discussion, thanks.

I saw one car with lien. I clicked in the opposite direction. Don't want that complication.

I don't do Venmo. I suppose if the seller wants it that way, I'll also have to decline.

 

[punkinhead]

I may be overthinking it, but if someone has a loan on a $4k car did they have the resources to keep up with the maintenance? That's also why I wouldn't buy a car from a "buy here, pay here" lot. I don't want a car that was repossessed from someone who couldn't afford oil changes.

 

[JoeWras]

I may be overthinking it, but if someone has a loan on a $4k car did they have the resources to keep up with the maintenance? That's also why I wouldn't buy a car from a "buy here, pay here" lot. I don't want a car that was repossessed from someone who couldn't afford oil changes.

You are not overthinking it.

 

[Montecfo]

My usual is to meet at DMV. Here in Va the plates go with the person so they need to register it to drive it after I remove plates.

Buyer brings cashier's check or cash.

Sign title and bill of sale.

Bring screwdriver to remove plates. And maybe WD40.

 

[JoeWras]

I'm getting cold feet while wading down in the bottom of the market. I may stand down for a while.

Some really strange people out there.

Although, some have been very good... the ones who already sold it. I suspect their good vibes are attractive to other potential buyers too.

 

[rodi]

We have bought and sold cars on craigslist. If the buyer is interested, we go to my credit union and deposit their *cash*. Money orders and cashier's checks can be forged. Tellers can verify the bills aren't counterfeit. We get the buyer to sign over the DMV form releasing us from liability.

If we are buying we drive to either AAA or an auto tags notary to sign over the title. And give them cash. If they asked us to go to a bank we would.

 

[kgtest]

Despite my heated statements that I'd never do a private party used car sale, I'm seriously thinking about doing one, as a buyer.

I'm looking at used minivans as a stealth work vehicle. I'm down in the weeds of high mileage, 15+ year sales, for less than $5k. I only see my need for a few years, and won't put a lot of miles on it, so that's why I am where I am.

The flakiness of sellers, some of whom are scammers, others who are just flaky, is another matter and is covered somewhat in the thread I linked above. This market also is rife with the shady dealers that peddle bad cars to people with no money or credit. That's one reason I'm staying with private sales. The dealers in this market are a scary bunch, and some even present themselves as private sellers on FB Marketplace.

But let's say I find a sane person to sell me a car for $4k. What's the process?

- Meet at a public place?
- Pay cash, or meet at local credit union to cut a check?
- Meet at DMV to do the title transfer?

I'm actually pretty completely clueless in this area and could use some ideas and opinions.

I sold our Camry for 7k. It had 200k miles and the person who bought it thought it was basically brand new. It was in great shape, but there were some issues.

Likely high mileage vehicles will need something. Ours needed breaks, rotors, new axle seal, battery, shocks and struts. So we sold it.

The buyer met at my house with cash. Nice guy who was buying the car for his niece. I forgot to have my wife sign the title over, but I did (both our names were on it) so they had to come back a while later when they were finally ready to transfer the title to get her signature.

I think by the book would be to meet at a bank to make sure the money clears whether its cash or check. Our buyer actually had the pen that they use at banks and stores to check if a bill is counterfeit or not. That alone gave me the confidence that they were not trying to rip me off.

I should have met at the DMV, but like I said he was not ready to transfer the title to his niece until she was in the state (out of state at college). When she did finally come home, and went to the DMV since only I signed the title they needed my wife to also sign it. I also needed to give them the letter saying the loan we had on it a looong time ago had been paid off.

Just some tips for when you make a purchase. I would meet at the DMV if the seller is willing. If not, it might be a red flag unless they have a good reason.

 

[mabuhay]

Not what the OP asked, but you get so much more going up a bit on price. It is not a linear progression down the price ladder - the bottom is really bad, not only the vehicles but the sellers. As an example, I just scanned a couple of the local new car dealers I have done business with locally - Tucson Audi and Volvo of Tucson, and they have lots of clean looking used cars in the 7-10K price range. Like a 2014 Ford Focus with 120K, a 2016 Fusion with 120K, or a Subaru or Honda Accord with 150K+ mi. Good drivers.. These are reputable dealers. And no rust out here either, although you might have some sun damage.

As to the original question, I most recently have sold a couple BMW motorcycles and generally have them meet at my bank with the cash, and have the bank count it, and get the title notarized. Or meet at their bank and they get a cashiers check in front of me. The tricky part with motorcycles is the test ride.. ugh.. but fortunately with these bikes most riders are experienced.

 

[JoeWras]

Not what the OP asked, but you get so much more going up a bit on price. It is not a linear progression down the price ladder - the bottom is really bad, not only the vehicles but the sellers.

Yes. This is dawning on me right now. I actually visited a reputable dealer yesterday and put him on BOLO watch for something a bit up the scale.

 

[atmsmshr]

Our used car buying checklist.
- Research type of car desired
- Ask seller about accepting personal check
- Get VIN to check CarFax
- Avoid vehicles from the salted northern roads
- Meet in a decent place
- Verify Clean title
- Check tire wear
- Check engine, brake, transmission and coolant fluids
- Check engine belt wear (cracks in belt)
- With engine running, remove oil filler cap to check for any blowby to screen out failed piston rings.
- Check for engine codes with OBII reader
- Test drive
- leave engine running and look for leaks
- Negotiate price
- Verify ID of seller
- Bill of sale from state DMV (bring two blanks)
- Sign check
- Seller signs title and hands over
- Put on new plates that you bring, or else get address to mail old plate back to seller.

Maintenance on used cars is usually deferred. At a minimum, change engine oil as soon as practicable.

Drive it till the wheels fall off.

YMMV

 

[finnski1]

Yes. This is dawning on me right now. I actually visited a reputable dealer yesterday and put him on BOLO watch for something a bit up the scale.

You do realize that the $7-10k "up the scale" car the dealer is selling you is the same 4k car sold in private sales on craigslist etc. They just might wash it a little better.