Used Cars: another lien question, mechanics lien, mechanic lien


Question
QUESTION: jay, I am sorry, I have been asking you lein questions all afternoon.
The seller is the leinholder. I believe it is a mechanics lien. he is a mechanic.  does this make a difference?

ANSWER: Well it would make for a little more piece of mind, I would much rather it have a mechanics lien vs. a bank that had repossession problems. I would probably feel quite a bit better, though I would inquire why somebody just left it with him, must have been an expensive repair....what was it?

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

QUESTION: Jay I am sorry, I know the story keeps changing. It is a NOT a mechanic lien. This is the story from the dealer:
He sold someone this car, the buyer paid(directly to the dealer) on the car until it the balance was about $500, the buyer stoped paying, the lien was taken out. The dealer and the buyer agreed that the buyer would bring the vehicle back, effectively trade in the vehicle and a little cash for a different vehicle. The dealer says he has the title and that it is clean a transferable, and that he is absolutely sure that there wont be a problem switching the title over. The dealer said that he goes to a place to (not tax office) to switch the title over. he called it a title office or something. He said there were only three of  the offices in the state of Texas.

You have been a huge help! late me know what you think.


Answer
Well if the dealer is a reputable one, I guess you would just have to trust him, that is not something that a dealer would really try and lie about, because it would DEFINETLY come back to get him.  It sounds like a legit incident, and I dont think I would be to concerned with purchasing this car.  I would however make him get the title right, before you purchase, which he should be able to do.
I am not sure the EXACTS of Texas law, but here is what he should somehow do, in my opinion.  He should get a title in the dealers name, with NO lien on it, since he is the lien holder.  Then when he sells it to you, he can sign as the seller, and there is your one way to make sure it is all good before you purchase.  Again, I know that could happen here in oklahoma, not sure in texas, but that is what I would tell him you want, and see what he says about that.