Car Purchase -- Leins on car?

Question

I purchased a car from a private seller, and I am taking the VIN number of the car to the bank today to make sure there are no lein's on the car.

I am paying $8000 for the car, and the seller is using that money to pay off his $7000 car loan. Will the bank okay me to go througg with purchasing this car?

Answer 1

That just depends on the value of the car. If the car is worth 8000 and you have good credit, then yes. However, they willl want to probably pay the loan off for him instead of giving you the check. Because technically they are the ones buying the car.

Answer 2

Is the bank financing you?

Ask the seller to provide a Carfax report before purchase. It's only $30 an he can email it to you or give you a print out. I don't see why he wouldn't in order to sell the car.

Answer 3

To elaborate on Bull Dog's good post, the bank is the one that will hold the title until you finish paying your loan.  They will probably insist (require) sending the checking directly to the seller's lien holder to pay off his loan and then send a check to the seller for the remaining amount, in this case $1000.

it should not be a problem at all unless the car you are buying is not worth the price you are paying.