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Question about buying a car with Lien title

Discussion in '2nd Gen. Tacomas (2005-2015)' started by bareefer, Jan 3, 2013.

  1. Jan 3, 2013 at 1:04 PM
    #1
    bareefer

    bareefer [OP] Well-Known Member

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    Hi im looking to buy the 2007 tacoma that i have a few questions about before i buy. Im hoping that some people might have some insight on how to do the transaction. I live in California and the car is located here. The owner originally bought the car CPO from Toyota in Oregon. He is the 2nd owner and moved to cali 2 years ago but did not register the car. Now he wants to sell the car but the car still has a loan / lien on it. Toyota Financial still owns the car. questions i have are:

    1.what is the best and safest way to purchase the car since i will be paying off the car for him first and plan on having a bill of sale, power of attorney form, lien satisfied/legal owner/title holder release form all going to be signed and notarized. he will then give car over to me and we will wait for the title to go to him and then sign it over to me.

    2. the car is from oregon and i will need to register it in cali. any fees i need to know about or problems with registering the car, smog. etc.

    Thanks in advance for any input would be great. i just want to make sure im protected. anything i should get from him?

    SORRY EVERYONE I MUST HAVE GOT THEM CONFUSED THE CAR IS FINANCED THRU TOYOTA AND I THOUGHT LIEN WAS THE SAME THING.
     
  2. Jan 3, 2013 at 2:21 PM
    #2
    Jimmyh

    Jimmyh Well-Known Member

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    If you didn't or don't know this dude very well. I would not do it, way too much trouble.
     
  3. Jan 3, 2013 at 2:30 PM
    #3
    Palehorse1

    Palehorse1 Official TW Burrito Inspector

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    Don't know the answer to your question but many legitimate sales of vehicles happen where the current owner still has a remaining balance on it. The fact that the seller lives in California and hasn't registered it in California leads me to believe that they are avoiding taxes by keeping the registration in a state they formally resided in. If you pay attention you will find many high ticket vehicles in California with Oregon tags for that same reason.

    If you still want to go through with this I'd say get ahold of Toyota Financial yourself to see what they would require to relinquish the title to you instead of their current borrower.

    Toyota Financial contact page.

    Regardless, I hope you find something that works out for you and you enjoy your truck.
     
  4. Jan 3, 2013 at 2:31 PM
    #4
    NoSoup4You

    NoSoup4You Well-Known Member

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    x2 .. if the truck has a lien against it that he isn't paying the truck will get repoed sooner or later. It's possible this is a contractual lien between him and Toyota, but unlikely.

    If it's just a regular loan I would work through his financial company to see if it can be transferred to you before the payoff and title issuing.
     
  5. Jan 3, 2013 at 2:33 PM
    #5
    hetkind

    hetkind Well-Known Member

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    And you might be liable for California tags and title...
     
  6. Jan 3, 2013 at 2:34 PM
    #6
    NoSoup4You

    NoSoup4You Well-Known Member

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    Definitely. Have to pass CA smog and pay an import fee.
    Also there might be sales tax collected as well.
     
  7. Jan 3, 2013 at 2:35 PM
    #7
    blakes09

    blakes09 Toyota Tech..when im not Fishing

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  8. Jan 3, 2013 at 2:37 PM
    #8
    NoSoup4You

    NoSoup4You Well-Known Member

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  9. Jan 3, 2013 at 2:37 PM
    #9
    Cr250jumper

    Cr250jumper Señor member

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    Ummm anytime a bank owns a vehicle (or anything else) they are the lein holder of the title. It has been this way for about 10 years that ALL creditors are the lein holders until the loan has been paid off. It in NO WAY means he has or has not made payments on time
     
  10. Jan 3, 2013 at 2:41 PM
    #10
    Cr250jumper

    Cr250jumper Señor member

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    Also OP, when you purchase a vehicle that has a lein you make special instructions that the check you provide can only be used to satisfy the loan and by cashing the check they must release the lein on the title to YOU. That is what happens anytime you re-finance a vehicle as well, its called a lein release people :rolleyes:
     
  11. Jan 3, 2013 at 2:43 PM
    #11
    DeeKay21

    DeeKay21 Lieutenant Dan.

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    Sounds kinda shaddy to me. :cool:
     
  12. Jan 3, 2013 at 2:44 PM
    #12
    NoSoup4You

    NoSoup4You Well-Known Member

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    Pretty sure most of us thought of this when he mentioned lien:

    Definition of a lien sale.

    If a person has repaired, furnished supplies or materials, towed or stored a vehicle AND has not been paid for the services rendered, that person has a lien against the vehicle. The lien arises at the time the registered owner is presented with a written statement of charges for completed work or services.

    If it's just a regular loan, there are easy options to get it transferred to you.
     
  13. Jan 3, 2013 at 2:46 PM
    #13
    Cr250jumper

    Cr250jumper Señor member

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    That would be a mechanics lein in which they have the right to sell your vehicle because they rendered services you didnt pay for. This a lein to Toyota financial, not the same thing
     
  14. Jan 3, 2013 at 2:55 PM
    #14
    Gincoma

    Gincoma Special Edition Member

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    Seems nothing wrong to me just cause its from another state, 75% of vehicles on the road have a lein, I sold a vehicle before with a balance owed on it doesnt mean im doing something wrong. I work at a bank I see this all the time I say its fine some people are looking to hard into it.
     
  15. Jan 3, 2013 at 2:57 PM
    #15
    NoSoup4You

    NoSoup4You Well-Known Member

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    yeah, I was just trying to clarify why some people including me jumped right to "no" when they saw the word lien.
    I'll admit it threw me because I don't deal with loans that often. Honest mistake.
     
  16. Jan 3, 2013 at 3:18 PM
    #16
    Gincoma

    Gincoma Special Edition Member

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    Why? People have to pay for taxes and registration in there respective state regarless if its new or used or from another state. Why would anyone sell a vehicle in there right mind consider ones taxes and registration. Its unheard of unless there family.
     
  17. Jan 3, 2013 at 3:24 PM
    #17
    Cr250jumper

    Cr250jumper Señor member

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    X2. In Arizona the seller keeps the license and paid registration to put towards your next set of tags. So even if the registration is good and I sell you a vehicle, I keep the plates and you have to purchase new ones for yourself
     
  18. Jan 3, 2013 at 5:51 PM
    #18
    maineah

    maineah Well-Known Member

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    What difference does the lien make it sure sounds like a finance lien once the thing is paid off you get a title with no lien and then you register the truck with a clean new title. I sure would advise sitting in front of the loan officer when there is money exchanged.
     
  19. Jan 3, 2013 at 6:02 PM
    #19
    cheech1

    cheech1 Well-Known Member

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    And if you finance the truck, your lending institution will now have a lien on the truck.
     
  20. Jan 3, 2013 at 8:05 PM
    #20
    Rich91710

    Rich91710 Well-Known Member

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    The lien is not the problem.
    You get paperwork from the bank and write a joint check.
    The bank cashes the check, releases the title to you, and gives the seller the change.

    The way you are proposing to execute the sale leaves you wide open for problems... namely, he gets the title from the bank and then calls the cops claiming that you stole the truck.
    If the guy has half a brain, you won't get a PoA... ANYONE who signs one of those in a private party transaction is a fool.

    The problem is the registration.
    California does not take kindly to people not registering their vehicles, and there very well may be a secondary lien on the title by the DMV that the bank is unaware of and will need to be cleared before you can take title.
    Registration fees plus penalties can exceed $1000.

    I wouldn't touch it with a 10 foot pole.
     
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