Quote:
Originally Posted by cadyshac
So how does it work if you are buying out of state from an individual and financing the vehicle? I guess every lender is different? My bank is telling me they will provide me with a certified letter to show the seller saying I am approved for the loan but they won't release the funds to the seller until I bring them the title, signed over by the seller and notarized.
Not sure I would do this if I were the seller. Anyone have a different experience or any advice?
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Play devils advocate a minute. Your bank is on drugs if they think a seller is stupid enough to sign over a clear title without payment. Financing simply isn't a sellers problem, they want cash and should expect nothing less. Actually, maybe credit card or PayPal but that's a different conversation completely.
I recommend meeting at a branch of the sellers bank to transfer funds and signed title. You will have to pay cash, probably via bank wire which takes 15 minutes to clear here in the states.
This takes care of payment, but the physical source of cash will be your problem. Most out of state buyers "borrow" from themselves and pay cash, then refinance with their bank once the title and registration have been moved in state.
- Obtain a signature loan
- Transfer $xx,000 to your checking account
- Drive/fly out of state
- meet at bank
- sign purchase / sell agreement
- wire cash to seller
- seller confirms payment
- seller signs clear title
- seller gives you keys and vehicle
- you drive home
For what its worth, banks are the absolute worst place to borrow money from for any reason. Shop local credit unions and find one that treats their customers with respect and one that will provide you a signature loan that they are willing to convert to an auto loan once you return in state.