Buying a Tacoma with a lien on it, is this problematic?...(california)

sup guys, first time poster but i have lurked before, hope you dont mind me posting here first to introduce myself......

i had a 2008 tacoma up until 2 weeks ago when some young kid rear-ended it pretty bad (have pics if interested)... well insurance totaled it out so i got payed out for it....

now im on a hunt for a newer tacoma, i've only have found one private that i really like, and my other option is dealership which has given me an offer of 32k OTD ( all fees included) (2014 trd tacoma 4x2)....im thinking of offering 30?? or am i too low?

anyways from the pics of the private tacoma and emails back and forth with the owner i was pretty much set in this truck and told him i'd go check it out and than he told me he does not hold the title ( he is still making payments on it ) which was a total buzzkill....

without a title im not sure if this will be a transaction filled with problems, im not too comfortable handing over that much money without a title.. a bill of sale is worthless but he states we would go to the credit union together than dmv afterwards and he'll sign it off.... does that sound right?

my biggest concern is me holding no title and instead waiting around for it at home if it doesnt go as "smooth" as he says...

any advice?


update: ended up purchasing tacoma at dealership

 

So, the truck is financed, no big deal, if you can get a righteous deal you can pay off the balance and title will transfer to you, or you can arrange your own financing along with whatever down payment and have your financing company pay the original loan off..


There doesn't seem to be a problem...what kind of budget do you have?

 

I agree with the seller. Go to his credit union with him (or meet him there) do the deed, get the title and off you go.

Good luck!

 

The risk is reduced if the seller's credit union has a process to send you the title directly. Ask the seller's credit union if they can do it this way:

1. You write a bank draft to the credit union for the lien amount.
2. You pay the seller remaining difference between selling price and lien amount.
3. Seller gives the credit union a letter authorizing them to give you the title directly.
4. Seller gives you the keys.
5. You wait for the credit union to send you the title.

 

Not a problem I sold my 05 sequoia for 14,000 guy trusted me. He made out a cashiers check to toyota financial and I sent it off next day mail and I downloaded a form from toyota to accept payment and to put in his name. But for some reason they still sent title to me which I signed and mailed out to him. But if you can pay it off at a credit union even better atleast it gets paid off and credit union knows you will be new owner.

 

about 31k....im paying it myself, no financing... only problem is he says the "title" isnt held at the credit union, what they'll do is release it and than we go to dmv....is there any way the credit union can get the title or have the title ship to my house?

the title isnt at his credit union, what they'll do is send an electronic release to the dmv and he says we'll drive over to the dmv and he'll sign it over to me

is there a way he can have the credit union do it this way?

this is really what im worried about, i guess im just worried that i might pay off the truck and the title arrives to him and we have some kinda problem after that....i havent met the guy so its not really fair for me to assume the worst so hopefully once i meet him we can come up with a plan

 

As the others have mentioned, as long as you're going to meet up at the financial institution where the bank note is held, I see no problem. They should know how to properly handle the situation. I would doubt it's the first time they had a situation where someone was selling a vehicle they had not paid off yet.

As far as the new truck. $30k certainly wouldn't be a low offer IMO. The worst they can say is no and come back with a counter offer, so I wouldn't worry about giving an offer that's too low.

 

Fill out a Motor Vehicle Bill of Sale (include the vin) and both sign it at the credit union on payment then go to the dmv.
You can find bill of sale templates on the internet. Microsoft Templates is a good source. Some states do have specific requirements on what needs to be in the paperwork.
Then, enjoy your new Tacoma.

 

Thanks I'll email salesman from dealer if they'll take 30k.. It's black Friday so maybe they'll take it lol...

 

This...

While you're at it have the credit union notarize it. The Bill of Sale with notary will make short work of any legal issues you're worried about. At this point you'll have possession of the truck and a signed legal document stating yyou are the new rightful owner. Plenty of proof for any issues you may encounter while waiting for title.