Tell me I did the right thing?

[Rider]

2013 FJR1300A, ~2,000 miles, Bought Jan 2014, $10,500.

The seller has a $14.8K loan. He wanted to go to notary to draw up a contract, then we go to an affiliate branch (since the actual credit union that has the title is too far away from him, one hour drive) and I pay $10.5K on his loan, he uses his equity line of credit to pay off the rest, then when they send him the title, he will mail it to me. I get to take the bike first thing.

I couldn't do it, despite believing the guy is a stand up guy (everyone with young kids is a stand up guy, right?).

I figured either his loan would not get paid off for some reason or the title would never come, and one day I get pulled over and the bike is repoed.

I think the guy is selling cheap because he want's it gone quick and he is getting divorced, so I guess he'd rather not give the money to his ex.

It's 6 years and counting... one day I'll be part of the team...

Anyway, anyone in California, it should be easy to find on CL. That's the only consolation I can offer for the fiasco last week. I know excuses won't wash.

Thanks

 

[rockdude]

Sounds like a scam to me .... you did the right thing.

 

[GL4435]

You did the right thing. Convoluted financial arrangements can spell disaster in so ... so many ways.

 

[SoCalFJR1300]

You did the right thing.

Too many chances to get screwed with that deal.

There are plenty of other low mileage FJR's out there.

Thinking of selling my 2008 with only 15,000 miles for about $8,500 because I work weekends now and don't ride much..........

 

[Road_Runner]

There is no reason to do it this way. As long as the loan is satisfied, and with the current owners permission, the finance company can mail you the title.

 

[gregory]

no way in hell I would do that.

 

[Jester6]

I had to go through something similar when I bought my FJR. At the end of the day its a risk. I talked to a lawyer and there is really only a few things you can do to even remotely ensure you won't get completely screwed. I had to do this because the guy used state farm bank and they don't have brick and mortar. So I couldn't have them mail the title to the bank, walk in with cash, pay the loan, get the title.... I had to trust the guy would mail it to me.

1) Take possession of the vehicle after making the payment

2) Make the bank carrying the loan aware and they can keep a record of who you are and why your making the payment.

3) Draw up a contract stating that upon receipt of the title the seller will mail to the buyer and who is responsible for what actions (this really doesn't mean shit but I did it because I felt it would make the whole process be perceived as very serious)

4) Draw up Bill of Sale per normal procedure

You still risk the guy not paying it off, I didn't deal with that as I covered the balance. You also risk the guy not sending the title but at least you have leverage because you have the bike and he's not getting possession without a legal battle. At which point if you do end up in court you have all the documents and records proving ownership.

It is a risk, I took it but I got to know the guy and felt he was a good person through countless conversations. There is no clean and guaranteed way to do this, nothing beats handing over the money, receiving a title, and getting everything notarized all at the same time. Once you introduce external factors beyond this.

The best thing you could do is have the guy pay his part with the line of credit first. Then arrange to have the title sent to brick and mortar bank, walk in with cash and pay off the balance, YOU walk out with the title in hand. If he doesn't agree to that he is clearly trying to run a scam and the way he tried to process this sounds wrong.

 

[dcarver]

Run like hell away from that deal.

 

[MCRIDER007]

A one hour drive to the Credit Union to get the title doesn't sound that difficult for either of you.

 

[BkerChuck]

I don't think I would have gone for it either. A one hour drive in the scheme of a near $15k transaction is squat. There should have been some reasonable way to coordinate the both of you going to the main branch and handling it there where the title was. Smart move to pass n it.

 

[07FJRVegas]

++ for all the aforementioned!

 

[Fly Bye]

You did the RIGHT THING.

You pay off the loan and he holds the title. NO WAY.

 

[lonerider]

Smart move on your part, IMHO. Any time I buy a used vehicle (private sale), I expect a clear title signed over to me at the time I make payment or the deal's off.

 

[Twigg]

Yeah ... There is a way to buy vehicles that have liens, but that was not it

He should clear the appropriate amount first, with the line of credit. Then you get a Bill of Sale showing the amounts outstanding and to whom. You get the Title when you hand over any balance to the seller, and you get the bike ....

.... Then YOU pay the finance company (who you discussed it with first), and they give you a lien release.

It's simple enough if you do it the correct way round.

 

[Rider]

It's tough because I think banks typically keep the titles out here, so the seller has no paperwork. I've never done an auto loan, so not sure myself.

Anyway, once it became clear I was only going to do it at the branch that can sign title over, all at once, he suddenly got another buyer.

At least we had a cordial discussion and parting.

Someone may be getting a great ride one way or another. $10.5 would have been an amazing deal.

If I wasn't so cheap I'd just go buy a new one. I have to feel like I'm getting a good deal.

 

[dcarver]

Hey, look.. if Fred W, the FrugalYankee, can buy a new one, you can too!

 

[hppants]

Twigg is right - seller uses his LOC to pay down the loan. Then you show up with the loan balance and walk away with a bill of sale and a clear title signed over to you. Otherwise... see ya.

 

[FJRBandit]

My guess is the bike is still available. Simple enough to ride "his" bike and hour to the main branch. Ride away on "your" bike with the title. If the seller isn't open to something that simple, then find another FJR.

 

[Fred W]

I just recently sold a car (Jeep Wrangler) that had a sizable lien on it. Luckily for me I sold it for more than the lien, but that doesn't really matter for this discussion.

The way to go about that sale is for the seller (current owner) to call the lien holder and tell them to procure the title and have it at XYZ branch location, and that you will be there on such and such a date with a new buyer to close that loan.

Seller and buyer go to branch, exchange the appropriate fees to satisfy the loan, and the title is handed to the seller to sign and then hand to the buyer. No waiting or possible screwups.

Otherwise... faggetaboudit.