Tips on Buying Cars: Buying a car from private party, purchase experience, bill of sale

Question
After much research & looking, we found the car we want from a private party.  This individual is moving back to India next month and needs to sell his Nissan.  We test drove and agreed on a price. The car is KBB for $13,300, but he is selling us the car for $10,000. The problem is that he still owes $6,000 on a loan thru a Credit Union in another state.  He has a very pronounced accent which makes it even harder to work out these details.  We are prepared to pay cash, but want to make sure that will give us a clear title.  Obviously, we will not give him cash and just assume he will pay off his loan.  How do we close this deal?  Thank you,  Kathy B

Answer
Kathy,

Thanks for your question.  You are right to make sure that you protect yourself in your purchase experience.  As I have told many people, buying a car from a private seller is always a little dangerous, but most times it works out perfectly fine.  Your situation is even more difficult, because your seller is moving out of the country very soon.  I would call the lender that he owes money to together with him, and explain the situation.  See if they can expedite the process of sending the title out.  Typically it takes 6 to 8 weeks to get the title cleared, and obviously, you don't have that much time.  I would make this agreement with the seller and draw up a bill of sale, and have both parties sign it and get it notarized together.  First I would have a cashiers check made out to the lender who he has it financed with, for the amount of the payoff.  I would then spell out in the bill of sale that upon receipt of the title you will agree to pay him the remainder in cash.  He should be okay with this, if he is truly on the up and up.

Hope this helps.

Thanks - JB