Used Cars: Car title, lien holder, bill of sale

Question
I am in Alabama buying a car from a private seller in Georgia. The title is held by a credit union in Michigan. He will be paying the car off at the bank when I purchase the car, but how do I ensure that he signs the title over to me? The credit union will be mailing it to him and it will still be in his name. Does a bill of sale legally protect me if he tries to keep the title and claim that the car is his?

Answer
Hi Erik

I been down this road many times before, lenders don't all have the same way of terminating a lien and release title along with the DMV in some states will help you along more than others to transfer title.

I would not buy any car privately without a clear title, unless it's arranged in such way the lien holder will send you the title, and that can happen with a 3 way conversation where you submit the payout to the lender, and balance of funds negative or positive is worked out between you and seller with a bill of sale.

Buying privately is risky at any time, with a lien outstanding many buyers have been burned, read all the negatives buying private VS dealer at this link on my website   http://www.usedcartips.org/privatevsdealer.html  

To contact a DMV in any state or to find further information, this link will help you along    http://www.usedcartips.org/DMV.html