Tips on Buying Cars: buying a used car from a private party w/lien, buying a used car from a private party, car tomorrow

Question
Hi. Ok. my question is i am going to look at a used car tomorrow. It is being sold by a private party. She is selling the car for 6000, but owes 7000 on the lien. She says she is selling the car at a loss because the car she wants to buy at a dealership wont take a tradein. So she is selling it for a loss. she will be using the money she gets for the car and out of her own pocket to pay the lien off. Does this seem shady? i am not sure how this works. Buying a used car with a lien on it. Please help an inexperienced buyer! Thanks

Answer
Kyle,

People do this all the time.  Understand that if she does not fulfill this Klein and does not pay it off, that the vehicle can be repossessed and you would be out of a vehicle.  I would require some documentation that she has paid the Klein and require the title when she has paid the title comes in along with a release of lien.  You could be taken advantage of here, I will not hide that from you.  The seller is required to do a lot of things that if she does not do, you just waisted your $6000.  However, again, a lot of people do this everyday and it works out just fine.  I would just make sure that you have your basis covered.

Thanks -

Jeremy