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Hi all,

I have just finalized a verbal deal with a private party to buy their minivan. The minivan is currently being financed on their end by Bank A. I plan to pay part from my own pocket and the rest through my Bank B. How does the title transfer happen in such a situation? Because I know it takes time (say X days) for the title to be sent by Bank A to me/Bank B.

(a) Should I make the payment and get possession of the vehicle, while waiting for X days before the title is in our name? or

(b) Should I make the payment and wait for X days until the title comes through to take possession (doesnt seem right)? or

(b) Should I hold off on payment and possession until title comes through (but this is an unlikely scenario, because Bank A wont release the title unless they are paid)?

How is this kind of situation typically handled? Any advice appreciated!  

First of all, you should ALWAYS ALWAYS ALWAYS, get everything in writing. Make sure that the contract states exactly what will come with the purchase of your new minivan.

I just sold my vehicle through private party, and I still owed. Basically, the other party and I wrote up a written agreement, stating that $XXX.XX amount was still owed on the vehicle to the seller's lender, and that the amount given will be used towards the payoff of the vehicle, then the title will be sent to the seller, and the seller sends to buyer within xxx amount of days.

The title will not be released to you if you're planning on financing $xxx.xx amount with a different bank.  The bank will have possession of the title until the loan amount is paid off. Then and only then will you receive the title.

Also, don't forget to mention if the car is sold "as is" or with warranty. And make sure that at the end, you write that if the other party or you for some reason can't continue with the deal, that you get xxx amount of days to report it to the buyer/seller. A fee can be negotiated between you and the seller for wear and tear, or inconvenience charges.

As long as you have a contract stating that the seller will pay off the amount, NOT YOU, and NEVER NEVER NEVER give cash to a private party if you purchase a vehicle from them, get an official bank check, or a cashier's check. Always have a paper trail to protect yourself, just in case the deal goes sour and you end up in court.

If you'd like help in making a legitimate contract, you should try www.carcontracts.net. They wrote up mine.

Good luck, and congrats on your new minivan!