Buying a car from a private owner whose credit union still holds the tittle-Any help?

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nismoZtuner
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Buying a car from a private owner whose credit union still holds the tittle-Any help?

Postby nismoZtuner » Fri Apr 17, 2015 7:14 pm

A few weeks ago i was going to buy a car since my current one is having issues and would like something more new. i went to a dealership and liked a car but still was debating about it- the sales guy who was helping me at the moment gave me his info and asked me to come back when i wanted the car. On a Thursday i called the sales guy wanting to buy the car- the sales guy asked me to hold till the next day because he had the day off- i did- but then Friday came i went to the dealership and the sales guy told me that car just sold in the morning. hmm so then he tried to covinve me in another i liked it but it was $6k more than the one i wanted.. so now i went online looking for the same or better car.. i found one that is about an hour away from me with a decent price and way better than the one i was going to get..

so i got a hold of the guy selling the car- he told me everything about the car and then told me his union holds the tittle. That person is selling his car wants x amount for his car but owes less than what he is asking. I was already approved for my car loan at 2.49% (BTW my first car loan ever).

How would my union buy out his loan and transfer everything under my responsibility?
Can this be done on a weekend since banks/unions are usually closed on weekends?
Is there anything i should know from someone who has done something similar like this?

That person also lives about an 1hr away from me so not sure how this will be done...
Should i buy of the car on a weekday, go to his credit union and have them contact my union so that they can work on it?
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whit
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Postby whit » Sun Apr 19, 2015 6:40 pm

Not sure if this answer is coming too late; but, you need to find out if the credit union you got preapproved for does financing for private party sales.

If not, than you're going to have to pay cash.

If they do, you're going to have to change the paperwork done for the approval (I prefer preapprove term) and see if the rate sticks. If the car is similar in make, year and resell factor than..probably wouldn't change much, if you're sticking with same term and amount asked.

Once the paperwork is changed to reflect the correct vin and everything, the credit union should cut a check for you to give to that owner, or a transfer (if those services are available) would be made..that's a question you'll have to ask your credit union.

I'd ask for a check to be cut to you if possible, so you can pay a direct portion of that to his credit union that's holding the loan--and recognize that you need to protect yourself to have something making him legally liable to sign the title over to you because regardless of who pays for it, once the credit union receives the pay off, they'll notify the dmv where the note is held, that the lien is released and to send the pink slip to the owner, eg..the seller.

The seller than has to transfer it over to you. So before you pay off the loan, and give him the rest of the amount (that's if your credit union does financing for private party sales..that can get tricky in of itself from what I'm describing which is why big banks don't do it) that's over the remaining loan amount (his asking price)

Make sure you cover yourself

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Postby takeshi » Mon Apr 20, 2015 9:40 am

My bank has always directly paid the other bank with the other bank releasing the title upon payment. I've never received the title myself -- it has always gone directly to my bank. Your credit union should be able to answer your questions.

Have you had the car inspected?

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Postby nismoZtuner » Tue Apr 21, 2015 1:27 am

I took a look at the car today its very well maintained and it looks better than the ones my local delsrdhips offer for way less. Driving it was awesome!

Now the thing is that my union wants the owner to come to them- he lives a little over an hour away. I asked the loan offficer about just making the payment to the other persons credit union- she said it cant be done. After letting the guy know what my union told me he said that he was going to call them in the moring because he said that he has sold cars from union to union before and they havent made a big deal about it.

Now the other thing tripping me out is taxes- the loan officer told me i had to pay sales taxes ontop of the loan. Im looking at approximately $1995 in sales tax..my friend who his dad is getting into the car sales told me that they should not be charging me sales tax due to sale coming from a private owner- is that true?
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Postby whit » Tue Apr 21, 2015 1:49 am

In CA you have to, I only know this because I help notarize some forms..and the guy was having his "waived" because it was being sold to his wife if I remember correctly

I found this http://www.dmv.org/buy-sell/tax-and-tags-calculator.php

Nevada; one of the states that doesn't charge the sales tax for private party sales, isn't on that list.

CA is, but I believe you're gonna to be paying that to the dmw rather than the seller or the cu directly

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Postby flan » Tue Apr 21, 2015 7:11 am

takeshi wrote:My bank has always directly paid the other bank with the other bank releasing the title upon payment. I've never received the title myself -- it has always gone directly to my bank. Your credit union should be able to answer your questions.

Have you had the car inspected?


If there is a lien, the bank making the loan will only the lienholder. The lienholder then issues a refund to the owner. (Some banks will talk to each other, and issue a check for just the payoff, with a second check going to the owner, but that's not usual.)

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Postby nismoZtuner » Tue Apr 21, 2015 3:13 pm

whit wrote:In CA you have to, I only know this because I help notarize some forms..and the guy was having his "waived" because it was being sold to his wife if I remember correctly

I found this http://www.dmv.org/buy-sell/tax-and-tags-calculator.php

Nevada; one of the states that doesn't charge the sales tax for private party sales, isn't on that list.

CA is, but I believe you're gonna to be paying that to the dmw rather than the seller or the cu directly


One thing the loan officer told me is that "you can have the owner write down he sold you the vehicle for less, that way you can pay less sales taxes".. I didnt ask her- if the owner writes down that he sold me the vehicle for less on the bill of sale BUT the unions are reporting different amounts on their sides.. how that will work out?

may be im just over thinking it now...
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Postby nismoZtuner » Tue Apr 21, 2015 3:21 pm

flan wrote:If there is a lien, the bank making the loan will only the lienholder. The lienholder then issues a refund to the owner. (Some banks will talk to each other, and issue a check for just the payoff, with a second check going to the owner, but that's not usual.)

My union wants the owner to do an office visit- that they dont work union to union. His union was ready to work with mine but that wont seem to happen since they want him to come
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Inquires: TU(?) EX(?) EQ(?)

TCL-$19,800

Age-22



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