I'm looking into buying an '05 F250 but the title still has a lien on it from the loan the buyer took out when he purchased it. I've never bought a used vehicle before where the seller didn't have the title in-hand so I'm a little leary and trying to figure out the least risky way to proceed.
Wire the money from bank to the Lien holder (Ford's Financing group) for the full amount of vehicle sale. Payment overage will be refunded to directly to seller. (think it would be better to just pay lien amount then give rest on title transfer day?)
When wiring the money, get signed and notarized bill of sale stating I paid off the vehicle and am the vehicle owner, but not financially responsible for it or insurance until title transfer is completed. Probably could only say I'm the owner if I wired full purchase price to lien holder)
Within 24 to 48 hours, lien holder will fax a lien release form to the vehicle owner. Seller must contact buyer immediately upon receipt of lien release fax.
Buyer and Seller go to Harrisburg with the lien release letter and get the title.
Seller signs over the title at Harrisburg and buyer registers the vehicle at the same time.
Seller must keep full insurance on vehicle unit the title transfer is completed.
Will ask seller about parking the truck in my driveway once the money is wired to lien holder. I could then park a vehicle or 3 in front of truck to prevent its easy removal by seller and I wouldn't have keys to drive the truck myself.
There is no local bank involved on the seller's side since it was financed through Ford.
Going to Harrisburg can save ~10 days it might take for the state to send the title to the owner and isn't too terribly far away.
Has anyone heard that if I can show sales tax was already paid on the vehicle in PA when it was new, that I wouldn't need to pay tax again? I spoke to two different people at the DMV in Harrisburg, one told me I would need to pay sales tax on purchase price, the other one said I wouldn't need to if I can prove through a bill of sale that tax was already paid on it. I've never heard this before but thought I'd see if anyone else heard that. Called a local tag place and they said I will have to pay sales tax.
Truck I'm looking about I posted here for opinions:
Questions about truck I'm looking at buying
clean oasis and carfax reports.