selling a car that has a lein ?s

[Igovert500]

This may be a really stupid question, but I havn't ever sold a car that I've still owed money on and want to make sure I'm not getting screwed over.

Long story short, I bought a more practical car for my gf, however she still owes $7,500 on her current car. A guy on craigslist stating he's from a small dealership an hour away contacted me and is interested. We have spoken on the phone a half dozen times over the last week trying to schedule a meeting and discussing the condition of the car. He is proposing, that:

a) I fax him a copy of the 10-day payoff amount still owed on the car tonight
b) he comes to see it tomorrow
c) if he likes it, we sign over a power of attorney for the car to him
d) trust that he pays off the loan

I'm somewhat skeptical of c & d. I don't know how to insure we don't get shafted for $7,500. He states to wire a payment from his business acct, he would need to pay an extra $10 or something and sign paperwork at his bank before initiating any transfer near that amount.

He states that the car without the title is useless to him, and that is his motivation for not canceling any type of payment after I sign over the car. I disagree lol. However, he did point out he is from a dealership that I could drive out and see/meet, that he is willing to let me photo copy his driver's license, dealer registration(?), and that I'd obviously see his dealer plates, and he can prove he is the owner of said dealership.

My thoughts are:

a) I've always been able to call the bank that owns the car and give them my routing and acct #s and they were always able to take a payment over the phone...why can't he do the same and I wait to sign anything over until bank verifies they have recieved payment.
b) What if I tell him to bring a cashier's check, I call bank listed on cashier's check and verify, we seal it in an addressed and stamped envelope to my bank, and we drop it in a blue USPS mailbox together. However, I've heard some banks will even do stop payments on cashier's checks (Wachovia for instance).

What's the safest way to do this?

[Emilie@GZP]

stay away. If you are not familiar with how the process works, STAY AWAY.

*edit* why does he want this car so badly?

[mb3000]

I wouldn't do it, but thats just me. You could probibly find someone who would be willing to pay in cash. That's only way to go IMO.

[Igovert500]

stay away. If you are not familiar with how the process works, STAY AWAY.

*edit* why does he want this car so badly?

That's the thing, I've had it up for sale and gotten a bunch of deadbeats. He has shown interest and presents himself well over the phone. On top of that he's tried to negotiate the price over the phone 2x already, which I wouldn't expect a scammer to bother with...

Cash would be fine in my eyes, but the lender isn't local, so I'd need to deposit it, make a payment myself, then wait 7-10 days for lender to mail me the title, then sign it and mail it to him. He's not thrilled with that solution either...

[91stealthrt2]

woah, i wouldn't do that.

Sorry he's going to scam you. Why is he in such a hurry to get the title? He can't wait two weeks?

[RealMcCoy]

If the financial institution that holds the title is local, he should simply accompany you there and pay it off...

If he is a legit dealer, he will pay it off. he can't get the title otherwise. I suspect what he's doing is a financial dance with his own bank or investors to get it on his lot using someone else's money. If he has the power of attorney, he can obtain his own financing and go pay it off.

It's up to you to decide if you want to participate in that dance or not... I'd probably pass if it were me.

[91stealthrt2]

curious how this has worked out, surely he is in such a hurry that he's tried to get the car by now.

[jba3]

Sounds fishy. I would accept his payment for the car, give him a bill of sale stating the vehicle has a lien, and that the title will be transferred when it is given to you as clear by the lienholder, with the date for receiving the money, and the date of the payoff amount being sent as the following day.

It's a bit complicated, the better way is if you can, pay off the lien now, sell the car, then take that $7500 from the lien and put it back wherever you got it from. Easier for buyer and seller.

[RL7]

A lot of banks have just started charging domestic wire transfer fees. 10 is not bad, I had to pay 25 a little while ago and that's ridiculous, especially when you consider the transfer only costs the bank 10 cents or so. I wouldn't consider the fact that the guy works at a dealership to mean he's a person of high-moral character. If anything, I may think the opposite. He is likely trying to trick you to legally sign the car over to you without paying for it. Only way I would do it (I've done this before): first both of you sign a bill of sale indicating the purchase price and deposit (if applicable), both of you go to the lending bank, he hands the full amount to you and you hand the balance of the loan to the bank employee. Bank gives the title to you, you sign it off to him. You will definitely want to make arrangements with the bank ahead of time and let them know what you are doing. They should be familiar with transactions like this, it's nothing too out there. I just read the lender isn't local. That's bad news for you. I would contact them to see what solution they can propose.

Sometimes credit card companies like capital one send out no transaction fee checks, I used one of these to pay off a car loan once. As long as you pay the balance before that statement's bill is due or transfer it somehow, that can cost you nothing.