Buying a new used car

[Auto1]

Shawner,

I would stay away from any vehicle that isn't paid off, free and clear. Yes, the seller was honest with you about the amount owing, but has this person always been current in payments? Has the truck already been ordered repossessed?

Can you phone whoever holds the loan, (with the seller) and make sure of the 'conditions'? Can you write them a check directly?

ICBC used to offer a search for vehicles that would show if they were in collisions, or had liens on them. I would pay and get that done....

I would make the check directly out to them. That is a fair chunk of money to lose if things go sideways.

I am sure others will have better advice, but I see a red flag or two.

[Bsuds]

I would want to check with the lender to see if there is a lien on the car. I had many loans where the car was not used as collateral and therefore no lien on it. If there is then see if the lender will release the car if the money is paid to them directly.(and get it in writing)
Also if you are getting a really good deal then it might be worth it to just pay the full amount owing to be safe.
If it becomes too much hassle then walk away!

[my5cents]

Still looking for a truck. My inlaws have agreed to lend us the cash so that's no longer a problem, but now I've got a different question that a guy at work brought up.

I'm interested in a truck. The guy still owes $9500 on it but said he'd be happy if he could sell it for $9000.

- If I just gave him a cheque, he could decide not to put the money down on the truck loan, there would then be a lien put on it and they could take the truck, correct? Is the only to prevent this to go to his lender when I give him the money to ensure that it's put down on the loan? Do I get a letter or somethign stating that it's clear?
- If he only put down 9000 of the 9500 loan and doesn't have the 500 to pay off the remainder... is that 500 still against the truck? Again, could he decide that he doesn't want to pay that 500 and then his lender comes after me?
- would any of this be an issue if I bought from a dealership (either large dealer or small private one)?

Thanks

Issue the cheque to the buyer and the lien holder. Pay to: "Joe Blow" and "Acme Finance". The $500 is still against the truck and even if they don't come for the truck, if and when you go to sell it the lien will be there.

[Shawner]

How can I tell if a vehicle is paid off free and clear? Does that carproof check that?

If I buy from a dealer, do I have to worry about this?

[Dizzy1]

How can I tell if a vehicle is paid off free and clear? Does that carproof check that?

If I buy from a dealer, do I have to worry about this?

I'd check anyways, regardless if its from a dealer or not.

1. How can I check if there is a lien on a vehicle?

In B.C., liens are registered by the Personal Property Registry in Victoria. If you have the vehicle’s VIN (Vehicle Identification Number), you can have a lien search done by:
•some ServiceBC centres (in person only), or
•the Personal Property Registry (in person or written requests).

Please note: ICBC driver licensing offices no longer do lien searches.

If the vehicle you are interested in is from another province or state, a lien search should be done for that location. You can get Canada-wide lien information by ordering a CarProof™ VerifiedBC vehicle history report.

http://apps.icbc.com/registration/vchr/faq.html#Q1

[Shawner]

I understand the lien search, I've done that in the past.

But what if:

- I checked, no liens on vehicle.
- Bought the vehicle, gave him the money.
- He decides not to pay off loan, lender puts lien on vehicle 2 or 3 months later

As noted in the posts before, I'd have to speak directly to his lender to prevent this happening.

If I decide to pass on this truck, is there any way with future vehicles to determine if there is money owing on it or if it's paid off?

[Tacklewasher]

I don't think he can put a loan on a vehicle after it is sold. As long as the registration happens right away. So if there is no lien now (and I don't know how long it takes for a lien to get registered), he can't suddenly use the truck as loan collateral after it is registered to another person.

If you own it and the finance company had no prior charge against it, they can't put a charge on it if he no longer owns it. If they have a charge against it, that would come up in the lien search.

But My last vehicles were either bought from my dad or at auction, so I have not had to deal with this.

[my5cents]

I understand the lien search, I've done that in the past.

But what if:

- I checked, no liens on vehicle.
- Bought the vehicle, gave him the money.
- He decides not to pay off loan, lender puts lien on vehicle 2 or 3 months later

As noted in the posts before, I'd have to speak directly to his lender to prevent this happening.

If I decide to pass on this truck, is there any way with future vehicles to determine if there is money owing on it or if it's paid off?

If there's money owed on the vehicle, make the cheque payable to both.

Make sure you write out a bill of sale and have it signed, (you and him, plus witnessed) including the date of sale, identifiers of the vehicle etc.

Any lien placed on the vehicle after the date of sale that is not a lien in your name won't be valid.

[Bsuds]

Any lien placed on the vehicle after the date of sale that is not a lien in your name won't be valid.

From talking to a Banker I know. If the Bank has loaned money for a vehicle there will be a lien on it all ready. They register one right away until the loan is paid in full. So if the seller does go in arrears on the last $500 then you will be *bleep*. and they will repossess it. Of course you can always pay off the bank at that time if you want to go thru that hassle.

[my5cents]

From talking to a Banker I know. If the Bank has loaned money for a vehicle there will be a lien on it all ready. They register one right away until the loan is paid in full. So if the seller does go in arrears on the last $500 then you will be *bleep*. and they will repossess it. Of course you can always pay off the bank at that time if you want to go thru that hassle.

Actually that's not correct either. There is a minimum percentage that the loan has to be above before a repo can be executed. If you have paid 2/3 of the debt, the collateral can not be seized.

[Shawner]

Thanks everyone, very informative.

[dodgerdodge]

A quick question that comes to mind. How do people generally pay for used vehicles that they purchase from a private seller?
It's all well and good if its a $2000 beater you can pay cash, but what about more expensive options? Can you trust someone's personal cheque for $20,000? Is a bank draft or similar any safer when taking someone's money? Or do you wait for their money to clear before handing over the keys?

[my5cents]

A quick question that comes to mind. How do people generally pay for used vehicles that they purchase from a private seller?
It's all well and good if its a $2000 beater you can pay cash, but what about more expensive options? Can you trust someone's personal cheque for $20,000? Is a bank draft or similar any safer when taking someone's money? Or do you wait for their money to clear before handing over the keys?

It's a toughie. I've heard even a certified cheque can be stopped. Not sure about a bank draft, likely a better option.

A friend sold a vehicle and was given $8000, in a paper bag. Before he could deposit it, he had to answer questions at the bank. No worse than (not sure if they still do it) Rockets games where they give you your winnings in cash.

[Tacklewasher]

A quick question that comes to mind. How do people generally pay for used vehicles that they purchase from a private seller?
It's all well and good if its a $2000 beater you can pay cash, but what about more expensive options? Can you trust someone's personal cheque for $20,000? Is a bank draft or similar any safer when taking someone's money? Or do you wait for their money to clear before handing over the keys?

Arrange to do the final payment at your own bank. Trust the bank to know how to avoid a fraudulent cheque and deposit it right away.