Best way to buy a vehicle from a private owner who still owes the bank?

So I found a vehicle that I would like the buy from a private owner. Of course he still owes the bank therefore he doesn't have the title. The bank does. Not a huge deal. Only thing is we are in CA and his lien holder resides in FL. He told me come next week we can meet at my personal bank (credit union) and have my bank call his lien holder. Wire transfer the money to pay off the "10 day payoff amount". And he will give me the vehicle then. The remaining amount that is his to keep will be at my bank on hold so he doesn't get anything from me that day and I get the vehicle. When the bank sends the title to him we and meet again and he can officially sign it over to me. Am I missing anything? Does my bank do such a thing when they don't get anything out of this transaction?

 

I sold a vehicle that I still owed on (to Toyota) and he just paid in full.

That said though, I think your best bet is going to be contacting the actual parties involved (basically the banks) to ask what is best.

The way Toyota wanted things done and the way his bank recommended were different, so once I contacted both and worked it out they told me a step by step of what all I needed, and what to get from my friend. Completed checklist, vehicle sold.

 

Just did this same thing. Before paying off the owners loan, I had his bank type a bill of sale and we both signed and had it notarized by the bank. They mailed me the title

 

Talk to your bank and have them call his bank with account info, they will handle the money/title transaction part

 

So your bank did all the transfer of money and his lien holder sent the bill of sale? That's my question. I've done it before but I bought from him and his bank was local and took care of everything. In this case his bank he owes is in FL so can I have my bank so the deal is what I am asking?

 

That's what I wanted to know. Thanks. I will talk to my bank tomorrow and we will meet sometime after and do the final transaction. Hopefully I'll be the bew owner of a 2009 DCSB SWB TRD Offroad 4wd Tacoma.

 

Good luck

 

You need paperwork from the bank.
Don't just pay off his loan... do that and he can tell the cops that you stole the truck.

Paperwork from the lienholder.
Joint check for the full amount of the sale.
He signs and sends the check to the lienholder.
They send you the title and send him a check for the excess funds.