Tips on Buying Cars: buying a used car that has a lien on it, honda finance, duplicate title

Question
QUESTION: Hi,

I am planning to buy a pre-owner car from a private seller. The seller is moving out of country soon and wants to sell the car asap. He has settled the loan on 8th Jan, but HONDA FINANCE has just shipped him the title and papers. He hasn't received the papers yet as of Jan 26th.

1) Can he transfer ownership of the vehicle to me without the title or lien release papers?
2) He says that DMV can issue him a duplicate title by calling up the lienholder and confirming release.
3) If I go to a DMV with him, and proceed with the transfer process (without a title or lien release paper), is there any chance that the lien will get transferred to me without my knowledge?

Thanks,
-Swapnil

ANSWER: Hi, I am really trying to read into your question and it leaves me empty, I make that statement becauce maybe I seen to many scams.

I am not saying your deal is that way but your question makes me think in that direction. Unless all the proper documentions are in order stay away.

There is nothing wrong with buying a vehicle from a private seller as long as you know whats involved compared to buying from a dealer check out this link on my site    http://www.usedcartips.org/privatevsdealer.html   from there should you have further questions feel free to ask

  Ray

---------- FOLLOW-UP ----------

QUESTION: Hi Ray,

Thanks for the prompt response. The seller actually showed me his honda financial account online which show the loan as paid off on 8th Jan, 2008.

If the title is not received, is there any way DMV can protect me while I apply for registration saying that there is a lien on the car or if the title is not legitimate. Or, would I have to wait the 90 days that DMV takes to generate a new title.

thanks,
-Swapnenil

Answer
Hi Again

Something is still not right, owner leaving country, showing you his financial account online dont pull any weight with me.

Let me explain how a dealer does it, when you run a history report on a trade-in and a lien is showing, a fax request will be made to the lender to confirm there is no lien outstanding and it's a clear title.

You really cant afford to skip a step in the transaction, dealing with private sellers, buying from a registered dealer you dont care if there is a lien suddenly showing up down the road, it will be the dealers problem not yours.

If you want a more detailed answer contact me through my website email and leave a # with best time to reach you, I got free calling for all of north America

PS, sorry for the delay, was away for the weekend

  Ray