| Vancouver Auto Chat 2016 VAC Community Head Moderator: Raid3n |
 | 
10-08-2013, 03:48 PM
|
#1 | | Ask me about how I answered the question "How fat is TOO fat?"
Join Date: Apr 2005 Location: Vancouver
Posts: 8,135
Thanked 4,146 Times in 1,143 Posts
Failed 1,392 Times in 247 Posts
| Buying a car from someone who is financing it
When purchasing a car from someone who is financing it, what proof must they provide to show they have paid the remainder prior to transferring ownership?
Say for example someone is financing their Honda for 5 years, I choose to buy it while they still have a year left on the finance. They say they will pay off the remainder of the amount owing. Will they receive a letter or verification number from the dealership saying that the remainder amount has been paid off? And how would I verify that they have paid off the amount owing? If they choose to sell it to me, what proof must they provide that they have paid off the remainder of the finance?
in b4 go with your gut feeling
thanks in advance
__________________
I'm so stance my roof rack got a roof rack
░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░ Current
e92 335i 6MT FBO
e90 330i 6MT
Former
e46 330ci 5MT - RIP
uc1 5AT
em2 5MT
db7 5AT - RIP Quote:
Originally Posted by toyota86  the guys over at lambo vancouver said there are 60-70 pre-orders already. don't quote me though. | | 
|  | |
10-08-2013, 03:52 PM
|
#2 | | Rs has made me the man i am today!
Join Date: May 2002 Location: Surrey
Posts: 3,226
Thanked 827 Times in 290 Posts
Failed 282 Times in 75 Posts
|
I'm assuming they will use the money you pay them for the vehicle to pay the remainder of the finance. You should both go to the dealership the car is from or the bank where it is financed and have it paid off. That way you know there will be know lien on the vehicle.
| |
| | |
10-08-2013, 03:55 PM
|
#3 | | Ask me about how I answered the question "How fat is TOO fat?"
Join Date: Apr 2005 Location: Vancouver
Posts: 8,135
Thanked 4,146 Times in 1,143 Posts
Failed 1,392 Times in 247 Posts
| Quote:
Originally Posted by fsy82 I'm assuming they will use the money you pay them for the vehicle to pay the remainder of the finance. You should both go to the dealership the car is from or the bank where it is financed and have it paid off. That way you know there will be know lien on the vehicle. | They're saying that they are able to pay it off completely right now (won't be using our money to pay for the vehicle). I'm assuming he will pay off with savings etc. If he says that he has paid it off, who would I check with after the fact to verify that theres no lien on the vehicle? Bank? Dealership? I have the VIN of his vehicle, of course.
__________________
I'm so stance my roof rack got a roof rack
░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░ Current
e92 335i 6MT FBO
e90 330i 6MT
Former
e46 330ci 5MT - RIP
uc1 5AT
em2 5MT
db7 5AT - RIP Quote:
Originally Posted by toyota86 the guys over at lambo vancouver said there are 60-70 pre-orders already. don't quote me though. | | |
| | |
10-08-2013, 03:55 PM
|
#4 | | Rs has made me the woman i am today!
Join Date: Mar 2010 Location: PM
Posts: 4,477
Thanked 3,341 Times in 842 Posts
Failed 207 Times in 86 Posts
|
^ yeap. Go to bank it's financed through, or dealer if it's in house.
edit: you ninja posted me. Go in with them when they pay it off. Or do a lien search. here: http://www.icbc.com/registration-lic..._a_lien_search
I'm cloudy on what you do if they take a loan through the bank and then use the cash to pay for the car though. Because technically they're still paying it off, but it won't show up as a lien I don't think? And if they stop paying it can still be seized? Forget these details sorry.
__________________ Quote:
Originally Posted by LSF22 Every time I'm there I usually see Jgresch's name under "Best Lap Times" | | |
| | |
10-08-2013, 03:58 PM
|
#5 | | 14 dolla balla aint got nothing on me!
Join Date: Nov 2007 Location: .
Posts: 623
Thanked 304 Times in 98 Posts
Failed 14 Times in 8 Posts
|
You can go with the bank they finance with and ask for a proof/receipt from the teller that the loan has been paid off.
| |
| | |
10-08-2013, 04:06 PM
|
#6 | | I contribute to threads in the offtopic forum
Join Date: Mar 2005 Location: Surrey
Posts: 2,808
Thanked 2,621 Times in 684 Posts
Failed 238 Times in 102 Posts
|
I ran into this issue when I was buying a bike this summer. The gentleman said there were no liens on the bike and that he owned it but turns out he was financing it. That doesn't mean he lied, he may have felt like he owned it but truth of the matter is, the bank does.
My solution was to go to the bank with him and have him pay off the remaining balance and get documentation that the bike was under his ownership. He was willing to do it but I decided not to go that route at the end of the day. Too much hassle and I didn't want to get suckered.
Be careful. I wouldn't buy it unless you went to the bank with him to close out the amount that is owed on the bike.
| |
| | |
10-08-2013, 04:23 PM
|
#7 | | OMGWTFBBQ is a common word I say everyday
Join Date: Jul 2012 Location: BC
Posts: 5,239
Thanked 4,905 Times in 1,655 Posts
Failed 331 Times in 171 Posts
|
So if you bought a vehicle unknowingly with a lien on it from previous owner (suppose you didn't do your homework) they (bank) can repo it and sell it? Or are you then responsible for paying off the lien? Or do they just go after the PO?
__________________
2021 F150 Platinum FX4
2021 Mustang GT PP1 6MT | |
| | |
10-08-2013, 04:24 PM
|
#8 | | Rs has made me the man i am today!
Join Date: May 2002 Location: Surrey
Posts: 3,226
Thanked 827 Times in 290 Posts
Failed 282 Times in 75 Posts
|
Like everyone has said. The bank can provide paperwork proving there is no lien on the vehicle. I've been through this and its a simple process. Get the lien documentation from the bank and also do the ICBC lien search as well.
| |
| | |
10-08-2013, 06:18 PM
|
#9 | | RS.net, where our google ads make absolutely no sense!
Join Date: Mar 2011 Location: Richmond
Posts: 916
Thanked 692 Times in 227 Posts
Failed 68 Times in 25 Posts
|
Last time I read up on lien, Liens are transferrable and will be your problem once you purchase the vehicle.
One the title is transferred, the previous owner has no legal obligation to pay off the remaining amount.
So get them to pay it off before you even consider a purchase
Posted via RS Mobile
Also, I think if you do a lien check from a accredited credit check place and it shows no liens, they cannot go after your vehicle even if it has a lien. Double check on that
| |
| | |
10-08-2013, 08:01 PM
|
#10 | | MiX iT Up!
Join Date: May 2006 Location: vancouver
Posts: 8,138
Thanked 2,069 Times in 867 Posts
Failed 642 Times in 183 Posts
|
happened to me when I bought my car.
I gave the buyer two options:
1) he call the bank and ask for a temp loan to settle the car loan by himself so I can have a free and clear car. I also requested that we verify this info by going to a branch of my choosing and confirming with the teller while he was present.
2) him and I go to the bank, I pay off the whatever the remainder is and him and I both get a receipt loan was paid and I wait a couple of days before doing a lien check.
He picked #1 and had loan paid off in full few days prior to me buying the car.
__________________
Sometimes we tend to be in despair when the person we love leaves us, but the truth is, it's not our loss, but theirs, for they left the only person who couldn't give up on them.
Make the effort and take the risk..
"Do what you feel in your heart to be right- for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt | |
| | |
10-09-2013, 09:23 AM
|
#11 | | I *heart* Revscene.net very Muchie
Join Date: Apr 2006 Location: 3rdrckfrmthesn
Posts: 3,701
Thanked 3,899 Times in 1,380 Posts
Failed 42 Times in 24 Posts
|
A lien release letter from the lender showing that they have no further financial interest in the vehicle should suffice. You can also do your own lien check through BC Online to see if there are any other lien holders. Sometimes people borrow money against their vehicle and it shows up as a secondary lien.
| |
| | |
10-09-2013, 09:30 AM
|
#12 | | I answer every Emotion with an emoticon
Join Date: Feb 2005 Location: somewhere
Posts: 7,906
Thanked 2,485 Times in 1,007 Posts
Failed 1,234 Times in 307 Posts
|
Get a receipt of full payment or letter from the place they financed from saying it is FULLY paid off...
Then Transfer vehicle ownership and have all the necessary papers ready and prepared at the place of financed and have everything you need done right there on the spot with witness
| |
| | |
10-09-2013, 09:57 AM
|
#13 | | Old School RS
Join Date: May 2004 Location: Port Moody
Posts: 4,601
Thanked 4,052 Times in 1,234 Posts
Failed 129 Times in 79 Posts
| Quote:
Originally Posted by dared3vil0 So if you bought a vehicle unknowingly with a lien on it from previous owner (suppose you didn't do your homework) they (bank) can repo it and sell it? Or are you then responsible for paying off the lien? Or do they just go after the PO? | If you bought a car with a lien on it, you are not responsible to pay the loan, ie it will not in any way affect your credit, however, they are completely within their right to repossess it if the previous owner does not continue to make payments on it.
The safest way to buy something with a lien is that you make out two cheques/bank drafts - one made out to the finance company for the exact balance outstanding on the day you buy it (have the seller call in and get the exact amount for you), and one made out to the seller for the rest. The bank/finance company will not write a lien release on the spot usually, but will give you a receipt for the payment, and will follow up with a letter confirming they no longer have an interest in the vehicle if you ask them for it.
Mark
__________________
I'm old now - boring street cars and sweet race cars. | 
| | |
10-09-2013, 11:10 AM
|
#14 | | My homepage has been set to RS
Join Date: Nov 2004 Location: Burnaby,BC
Posts: 2,053
Thanked 1,185 Times in 304 Posts
Failed 115 Times in 62 Posts
|
^ exactly what I was going to say. I've done it before like that and it worked just fine.
__________________
Fast, Reliable, Cheap
A car can be only 2 out of the 3.
| |
| | |
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts
HTML code is Off
| | |
All times are GMT -8. The time now is 09:59 AM.
|
You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!
The banners on the left side and below do not show for registered users!
