Car finance question

[Thordic]

Ok, I have a question, and hopefully someone knows the answer.

I'm buying a car from someone. She owes $10,000 on the car, but is selling for $8,000. (She has a valid reason that I won't get into)

I'm buying for $8000, and she is going to put in $2000 of her money to close the loan and then the title can be transferred to me.

How would this proceed? I've heard various things on the topic, and the two main things seem to be as follows:

1) Pay her the $8000, she adds it to her $2K, pays the bank, gets the title, then signs the title over to me. You'd need some sort of contract here to make sure you didn't get ripped off, obviously, and I'm not so sure I like this idea.

2) She pays her 2K to the bank, then the loan gets transferred to me and I pay off the loan with my $8K. Then the bank gives the title to me. I have the $8K, and wouldn't need a loan, but would I have to go through a loan approval process just to get the loan transferred to me? THis method seems complicated.

Neither one of us is entirely sure how to proceed. I gave her a deposit to make sure the car ends up mine in the end, and monday she is going to call her bank, but I'd like to know what to expect and such.

Has anyone gone through something like this before? Or does anyone work in an industry related to this sort of thing?

Any advice you can give would be great, I'm trying to get this sorted out so I can get the car as soon as possible, since I currently have no car.

Thanks in advance.

[Emily]

Here's an option....

You both go to the bank together. Each of you pay your part to the bank and then get the title. You will have to get the title notorized (sp) and the bank can do that. You kill 2 birds with one stone. You leave the bank with the car and the title.

[cphilip]

I agree. Go together and sit down and let the back work out the whole thing. DO NOT give her the money and all and try and do it all later.. get the bank in on it...

[Thordic]

Well the problem is the "bank" in question is Ford Credit, which doesn't have a "bank" you can go to. Think you could do it at the dealership? Im not so sure..

[fire1811]

i guess a good question is do you know and trust her?

[1stdeadeye]

Have her pay her $2,000 first!

After that is posted, have her complete a bill of sale to you. Get it notarized and then you send in your money to FMC with instructions the title be overnighted directly to you! Once in reciept of it, you run by her home and have her sign off on it.

You will have to pay more to have it expressed, but it makes sense to do.

Also, you will need the bill of sale anyways for the DMV for taxes.

Make sure you speak to Ford first though. If you do not pre-arrange things, it could take you up to a month to get that title after paying them off. Contrary to most people's beliefs, Banks and Credit companies do not store your title in your local office. They are all held in centralized collateral offices usually no where near where you are!

[AssassN]

What kinda car is it?

[Thordic]

Thanks 1DE. I'll talk to her monday after she talks to Ford. Hopefully they tell her what you said.

Its a '99 Mustang Convertible.

[AssassN]

I'm not a Mustang guy but congrats!

[Thordic]

Thanks for the help guys, but apparently Ford does it one way, and its their way or the highway

But in any case, I should have the car in 5 - 7 days (time it takes Ford to process the title, that's as fast as I could get it out of them).

[1stdeadeye]

Originally posted by Thordic
Thanks for the help guys, but apparently Ford does it one way, and its their way or the highway

But in any case, I should have the car in 5 - 7 days (time it takes Ford to process the title, that's as fast as I could get it out of them).

That is actually pretty good! Most places are at least 10 BZ days.

Good luck and enjoy!

[Thordic]

Yeah its not too bad. And the seller is being good about getting everything done promptly, which I appreciate.

I think I can live another week without a car...