How to Buy a Used Car on Payments from a Private Party?
Hello out there. I received a great question from Ryan. He asked about purchasing a used car from a private party using financing. This scenario, while sometimes a little tricky is quite common. The biggest consideration is the situation of the current owner. Do they have a loan on the car? If so, that is where it gets a little messy. Here is why: Currently the car has a lien against it, meaning that the loan must be satisfied before the lender will release the title to the buyer. The buyer is looking to use a loan to purchase the car. This lender will require the title to be delivered within a certain number of days. This is often a shorter timeframe than that which the current lender will release title. See where I am going here? Buyer and Seller need to make good on their obligations to their lenders, and they are up against the clock to do so. So in this case it is ideal to have the buyer pay off their current loan, receive title and then proceed with the transaction. You could lea
