chucktaylu

I need some advise / directions from someone whose been through this before.

The seller, myself and the vehicle are all registered in NY state.

I am purchasing a used IS next week from a private seller who still owes money on it. The outstanding balance is 22,xxx and I am giving him 21k for it. The lender is Toyota financial.

My questions are,
How do I incorporate the balance of $1,xxx that the current owner will pay into this transaction?

And most importantly, how do I make sure that when the lien is satisfied, I will have ownership of the vehicle and not the current owner?

Thanks in advance

I also drafted a Bill of sale, let me know what you guys think. Will this cover my *** from getting screwed over?

I, (seller_______________________________ of (address______________________________________________, hereby certify that I am the lawful lienee and owner of this vehicle:

Year ________
Make ________
Model ________
Mileage ( at the time of sale )_______________________
VIN#__________________________________________

and have the authority to sell it. I acknowledge that there is an existing lien for the amount of $_______________, that is owed to Lexus Financial Services of P.O. Box 5855. Carol Stream, IL 60197-5855.
I hereby acknowledge the payment of $___________ in the form of _____________, from (Buyer_______________________, to Lexus Financial Services towards the payoff of the lien. I (Seller) will assume responsibility of the remaining balance for the amount of $______________.

I, (Seller) will sign over the title for this vehicle, and thereby granting and transferring full ownership of this vehicle to the buyer.
I certify that this vehicle, at the time of sale, is free from all encumbrances, taxes, fees and liens except as those specified on the Title or listed above; and that, I (Seller) will defend and be held fully responsible for such lawful claims and demands with respect to the vehicle, if any.

Buyer accepts full liability for the vehicle, damages, and any third party liability incurred from the vehicle use from the date of sale.

If applicable, Seller agrees to make arrangements for the reasonable delivery of vehicle title from lien holder to buyer immediately.

__________________________
Seller's Signature __________________________
Buyer's Signature
________________
Date _________________
Date

100degrees

iTrader: (1)

Just make sure you get everything notarized. If a bank holds the title, you can get the transaction done at the bank and pay them directly in which they will mail you the title and lien release.

chucktaylu

Lexus financial holds the title, and theyre located in Illinois or something. Yes, I will get the bill of sale notarized.

drftsoarer

iTrader: (3)

Just deal with Toyota Financial directly. Make sure that they know he is selling the vehicle to you and they should take care of the rest. It should be a simple and easy process.

IOWNALEXUS

iTrader: (14)

Agreed... DO NOT just hand him a check for $21K thats just foolish, deal with the finance company directly, most likely you will send them $21k and he can send a check for the balance, make sure he has that money up front because they wont release the title untill its fully paid off.... then they will have to send HIM the title first so he can sign the back of it over to you and then he should send it to you.... it may take 2-3weeks for the whole transaction, i know once its paid off it takes lexus a week or 2 to send out the title, then it goes to him then he has to send it to you so.... There are no guarentees on this type of transaction, you could get screwed and have to go to court but thats unlikely since most people dont want a felony on their record.

Also trash the home made bill of sale, go to the DMV and get a REAL bill of sale and have it notorized in fact do both if it makes you feel better.

P51SN95

If the car is in NYS, the owner should have the Title in their possession, with Toyota listed as the Lien holder on it. At least that's how it always was with the cars when I lived in NYS. Some states like PA where I live now require the Lien holder to hold on to the Title until it is paid off.

I'm no expert so what I say could be way off, but I'd imagine the guy selling to you will have to pay that $1,000 to lexus and then you both sign the back of the title in front of a notary and then you send the title in for a new one with your name listed on it.

+1 I was going to say the same thing. I'm sure the DMV probably has the forms on line for you to download as well. Or there are better forms on line to download that would be better off being used.

chucktaylu

You are correct. He has a certificate of title with lien stamped on it. When the lien is paid off, Lexus will issue a lien release letter which will be mailed to him in about 3 days. I can registered the vehicle under my own name with that letter + the title with the lien stamp.
Lexus will also send out a new title with the lien stamp removed, which will take take several weeks as mentioned above. I can also used this to register the vehicle if I chose to wait that long.
This part of the process I understand, Im more worried about the getting screwed over for 21k part.


I also have the official bill of sale from NY state dmv (see below), but that one has no mention of liens.
http://www.nydmv.state.ny.us/forms/dtf802.pdf
I think this form is more for sellers with full ownership, so I dont know how much weight it would hold if I had to go to court. I suppose I can make him sign and notarize both.

calvin2376

iTrader: (2)

Looks like the above posters have offered some good insights. I'd agree that 1) do most of your work/communication directly with Toyota and get everything OK'd by them, and 2) the DMV should have a list of documents to download, including a bill of sale.

Personally, given all this though, I'd be asking myself if the car's worth all this. If you do your homework and get everything squared away to the last detail, you'll have nothing to worry about. But that will be difficult to do, and not doing so could potentially open you up to problems in the future. I'd just make sure the car is a good enough deal to justify all this added work.