paying for used vehicle from an individual?

yosh1975

Observer
I searched but kept finding how to finance a large sum of money for RV.
So I am looking to purchase a used vehicle (<10K) and it could be from an individual. What would be the best way to pay? Not too comfortable with cash so would a cashiers check work or??
Then when title is transferred I can drive vehicle without plates home as long as I have title handy?
Thanks
 

goodtimes

Expedition Poseur
When I buy vehicles from private parties, I use a check from my credit union.

I apply for a used car loan (even if I have cash but don't want to carry it). When it's approved, they send me a check with a "not to exceed" amount printed on it, and a place for me to write in the actual cost. Along with that, they send a paper explaining the process & their contact info.

Once I decide on a vehicle, I give that 2nd sheet to the owner, explain it all to them, and encourage them to call my credit union, give them the check number, sale amount, etc., so that the credit union can verify that the check is real & not a scam. Then we go to the bank, get the title notarized, I sign over the check & they can deposit it (if we're at their bank) or cash it (if we're at my bank).


When I've sold vehicles to private parties who want to pay with a bank check, I like to do the transaction at that bank so they verify that it's legitimate. If that doesn't work out for what ever reason, I'll minimally ask for a photo of the check (at least the bank its drawn on, the date, amount, & check number). Then I call the bank and verify that it is a good check.

As for driving it once the title is signed over, that's going to vary from state to state. In AZ, I print out a 3-day limited use permit the day that the transaction takes place. It costs about $1, & if IIRC, all I need is the VIN & my name/address/phone. Once it's signed over, I hang the temp in the back window, & I have 3 days to get the emissions test done & get down to the MVD.
 

plainjaneFJC

Deplorable
I meet at my bank if they have a clear title, if it has a lien I meet at there bank and write two checks. One check clears the lien and the other pays them the difference if any. Good thing about the bank is they can notarize the back of the title right there on the spot putting it in your name. I would not buy from an individual if I don't get title on the spot.
I searched but kept finding how to finance a large sum of money for RV.
So I am looking to purchase a used vehicle (<10K) and it could be from an individual. What would be the best way to pay? Not too comfortable with cash so would a cashiers check work or??
Then when title is transferred I can drive vehicle without plates home as long as I have title handy?
Thanks
 

Martinjmpr

Wiffleball Batter
As far as how to pay for it and what to do with the title, you should talk to whatever entity will be loaning the money, as they will tell you what to do with it.
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Back in 2009 I sold my Tacoma (which was still being paid for) and the buyers also were financing. Since my financer was out of state (USAA in Texas) we had the buyer's bank help us out.
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I think what happened was this:
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The buyers had their bank (which was local, in Boulder) send USAA the money to pay off the loan. Once that was done, USAA released the lien to me and FedExed the title to the buyer's bank, essentially to hold in escrow. USAA also sent me a notice that the loan was paid off. Once the buyer's bank notified us that they had the title, we made an appointment to meet at the buyer's bank and the buyer's drew the money that was in excess of the loan payoff (about $1000 IIRC) and paid me, and I then signed over the title to the buyer's, who then immediately handed it to the bank to hold so they could file a lien on it.
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It would have been less complicated if I had owned the truck outright or if the buyers had paid outright, but it worked OK for us.
 

tgreening

Expedition Leader
As a seller, cash only, and if that doesnt work they can walk. Last time I took a check it was from the Navy Federal Credit Union, to sell a Scrambler to a young Officer headed to AfganiPakIranIraqistan. My bank said it was good. My bank said it cleared. My bank said I'm suddenly $12K in the red, and the next day I'm $22K in the red. Turns out it was all a snafu on the credit union end and not some scam, but while they're getting this all worked out I've got checks bouncing from here to the moon before my bank gets a handle on it. In the end I got my money, everybody I wrote a check to got theirs, the bank refunded all my overdraft fees, and life moved on. But you want to talk about a heart stopoing moment to look at your account and see all that red, that was it.

Never again.
 
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Martinjmpr

Wiffleball Batter
As a seller, cash only, and if that doesnt work they can walk. Last time I took a check it was from the Navy Federal Credit Union, to sell a Scrambler to a young Officer headed to AfganiPacIranIraqistan. My bank said it was good. My bank said it cleared. My bank said I'm suddenly $12K in the red, and the next day I'm $22K in the red. Turns out it was all a snafu on the credit union end and not some scam, but while they're getting this all worked out I've got checks bouncing from here to the moon before my bank gets a handle on it. In the end I got my money, everybody I wrote a check to got theirs, the bank refunded all my overdraft fees, and life moved on. But you want to talk about a heart stopoing moment to look at your account and see all that red, that was it.

Never again.
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I'll agree, never ever take a personal check (or even a cashiers check) for that much $$. We just sold our little Teardrop last night and the buyers didn't want to carry cash. They wanted to write a personal check but I said "no way" so what we did was I hooked up the trailer and met them at the local branch of THEIR bank. That way they could draw the cash out and hand it to me. Once I had it in my hands I signed over the title and BoS to them and we were on our way. I hooked the trailer up to their truck and they were gone. I immediately drove to the local branch of my bank and deposited the money.
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I can certainly understand not wanting to have a large amount of cash when buying from a stranger but a check - even a cashiers check - would be a no-no to me.
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bknudtsen

Expedition Leader
The best transaction I had was when I sold my Cherokee. We both banked at Chase, so we walked into a branch and did an account to account transfer. No money or checks exchanged hands, and I had instant proof of funds.
 

98OzarksRunner

Adventurer
I sold my 65 Mustang a couple of years ago. Went to buyers bank. The bank wrote me a cashiers check and I signed over the title. You could have the seller meet you at your bank if he wants a 'fresh', and validated cashiers check. If he has a lien, I'd meet at his bank so he can pay off the loan and get the title, or lien release.

I wouldn't carry cash to buy a car (though I have when I knew the seller - and I usually request cash, or go to their bank for a check). I did sell a 4Runner to a lady a few years ago and she brought me $8k in cash and a cashiers check for the rest. I am nervous even carrying a large cashiers check since you can't stop payment on them - it's pretty much the same as cash (though you could press charges against whoever cashed it, but recovering the money would probably be a civil matter).
 

Saharicon

Adventurer
As a seller, cash only, and if that doesnt work they can walk. Last time I took a check it was from the Navy Federal Credit Union, to sell a Scrambler to a young Officer headed to AfganiPakIranIraqistan. My bank said it was good. My bank said it cleared. My bank said I'm suddenly $12K in the red, and the next day I'm $22K in the red. Turns out it was all a snafu on the credit union end and not some scam, but while they're getting this all worked out I've got checks bouncing from here to the moon before my bank gets a handle on it. In the end I got my money, everybody I wrote a check to got theirs, the bank refunded all my overdraft fees, and life moved on. But you want to talk about a heart stopoing moment to look at your account and see all that red, that was it.

Never again.

Thats interesting. I've had Navy Federal for 12 years now, best bank I have ever had. Sucks you had an issue.

I've bought 4 vehicles using a cashiers checks from Navy Federal. 3 vehicles with a Navy Federal personal check.

I normally just take whatever check the seller prefers and sign the title and paperwork there. In some states other paper work will be needed, but this should be worked out before the transaction.

I absolutely will not take cash to someone insisting on cash off the internet. To many people get set up that way by people they have never met. I wouldn't want to unholster because of something as petty as cash.

With that said, if its someone I know or that a good friend vouchers for. Then cash is by far the easiest solution.
 

cdthiker

Meandering Idaho
Gonna go with cash on this one.
There is just too many scams.

I have a few rules.
I always bring another person, I always meet in a public place, and I always OPEN carry when I go.
Over kill? Perhaps. I never open carry but in Idaho it is both common and legal. It sends a crystal clear message.
I always know who I am looking for going in to the scene and I eye ball the situation before getting out.
If they want to go for a test ride the cash stays with me, or I get their Keys.
when I bought my 4 runner I arranged to have it dropped off at the Toyota dealer ship and I paid to have an inspection done. The transaction happened in the parking lot and I drove it home.
I have bought a hand full of cars and motorcycles and sold just as many this way.

Checks are just to easy to mess around with. The only time I have bought a car with one was from a friend that my wife works with. All of the above was mute and void, she and her husband brought the car to my house the day before it all check out and I met her at work the next day with a personal check from my bank.

I dont like people having my account number so thats why I always pay cash.
 

tgreening

Expedition Leader
Probably a debate for another forum but as far as open carry goes....he who draws first wins. I would much rather a potential bad guy not know I'm armed than to know and be able to plan around it.
 

tgreening

Expedition Leader
On the Navy Fed, it was a simple stupid mistake on their end. Someone required a signature on the check (mine) which was clearly not required based on the paperwork sent. In fact there was no place for me to sign, only the buyer, but somebody back at the CU got their wires crossed and kicked back the original, starting that whole nasty chain of events. I had my bank loan officer go over the replacement check, along with all the paperwork, and she verified that according to what was on hand my signature was not required, nor was there even any provision for it. Bottom line those was "just sign someplace that looks satisfactory", and go with it. I did and happy ending.
 

dddonkey

Adventurer
When I sold my truck last year I went to the buyers bank and had had them cut me two checks for different accounts then handed over the title. When selling my motorhome last month it was a little different, the buyer also had to finance it but did through USAA. USAA does not have a local branch anywhere but I am a member, I called and verified the check and then went right to my bank to deposit it. Both transactions were good, but when dealing this that much money I always go to there bank in the case of USAA call. In the past I have applied for a loan to buy a vehicle and paid it off when the bank was done with the leg work and made sure everything was good.
 

code7phil

New member
Cash is king. Cash gives you negotiation power. And I never finance vehicles. If I can't pay cash, I can't afford it. I budget to put aside money each month till I can pay cash.
 

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