I'm looking at buying a 2017 RX350 for my wife from a private seller. When I ran a VIN report and it still has a lien. How do you buy from a private seller when they still owe money? I assume it's a little more work to get the title worked out. We'll be paying about half and financing the rest.

 

Seems like you'd have to figure out what bank/credit union is holding the lien & see what the pay off is.....Seems like a few more questions from the seller. Is the seller the original owner or ? I'd be also figuring out what its worth...... condition, miles & w/ what options as well as whats been done/maint.

 

He's the original owner. I called Lexus and my service guy pulled the history for me. Everything looks good. It's in good condition. Only 25,000 miles. I assume there's more paperwork and legwork involved. I would guess my bank pays off his bank and his bank mails the title to mine. Just don't know to go about doing it.

 

I'd call your bank w/ the vin , mileage & condition & ask them what's it worth. As I'd hate to see you pay more then what the pay off is.....Then have your bank go about it. If he hasn't paid it off & have title in hand & your doing the running around, I'd deduct a couple few hundred dollars from what he wants....I'd think if he wanted to sell the unit easier/faster, he'd have the title, which'd be a quick trip to your bank for a cashiers check & then a quick trip to the dept of licencing office.....

 

Talk to your bank/lender. I would think your bank would handle everything. This can't be the first loan they have made with an existing lien. They will probably hold the seller's portion until they receive the release of lien and clear title. I'm assuming you are getting an installment loan from the bank and bank will hold title as collateral.
I'm sure you will need a Bill of Sale, and your bank may have a preferred form they want you to use.

 

He was asking $38k. I got him down to $35k. It's his wife's car and I think he's tired of the hassle of selling it. It's an F Sport with 25,000 miles. From what I can find online and asking in the RX forum, it's a good price. I'll check if he has the title in hand. Would make it a lot easier.

 

Check with the seller's lien holder and see if you can assume the loan and pay the seller the difference.

 

If you buy outright (cash), the seller pays off their loan with the sale proceeds and the bank releases the title to you. If the seller is upside-down, they will have to cough up the difference before the title is released. Either by converting the balance to a personal loan or by paying it off.

 

In Ohio, the days of a bank literally holding the title are gone. When a loan is paid off, the lender sends a letter to that effect to the borrower who then takes it to the title office which, in turn, issues a clear title. Obviously, I have no idea how NM is, but as others have said, check with your lender.

 

It’s pretty easy, just ask your lender. When I have done it before the lender makers a check to the sellers lender to pay off the balance and a separate check to the seller for the difference between what was owed and the selling price.

As far as getting the title, it really depends on the state. In MD we get the actual title to hold but it says there is a lien on the car if it is financed. When it is paid off the state sends a lien release to the owner that looks like the title but is a different color. Then when the owner sells the car you give the new owner the title and lien release. In other states I have seen the lien holder hold the title.

 

the seller will not have the title since he does not technically own it; his lender does! as everyone said, go to your own lender who will be financing the rest of what you will owe. they should know what steps are needed to get this done.

 

This^^^^^^^^....Kinda seems like its a good price, depending on the options it has.....

 

Thats not always true. As I said previously, in MD we get the title even if the car is financed. It really depends on the state you live in.

 

So you get a clear title when even thou the vehicle isn't paid off?.....wow, never heard that one before. New & used, they give you a title w/ your registration in MD?

 

No, in MD you hold the physical title and there is a line that says there is a lien on the car. In other some other states the lender actually holds the title. This can be important to a buyer because if they don’t know what to look for on the title in MD, a seller can give them the physical title with a lien and the buyer may think it’s free and clear.