Advice on buying a vehicle with no title?

[Roo]

I'm hoping a snuson buddy can offer some good advice. I found a 2009 Honda Ruckus (scooter) on craigslist today for $1800. I talked him down to $1650. He bought if for his wife and she only put 700 miles on it. Brand new, with all the fees and sales tax, the same scooter with zero miles would cost me $2445. I'm trying to buy a replacement for my 2007 Honda Ruckus that had almost 7,000 miles that was stolen in January. $1650 for a ride with 700 miles is a steal compared to the same thing brand new for $800 more.

Here's the catch: He still owes money on it to the dealership, so the dealership has the title. The obvious answer would be to meet him at the dealership, pay it off, get the title and the scooter, and go home. He is envisioning a scenario in which I pay him for the scooter, he "writes a check" to pay it off, gets the title, and mails it to me. To complicate matters, he lives in Bellingham, WA, up by Canada about 1 hour 45 minutes from Seattle.

I know people buy and sell vehicles that aren't fully paid-for all the time, I've just never done it and I'm not sure how it usually works. One idea I'm thinking about is to offer him $1650 if we can meet at the dealership, or $1500 if not and I'll send him $150 when he mails the title. This still puts me at risk. My biggest concern of course is that he doesn't pay it off, and the dealership comes after me for the loan and/or repo's it. He says he will sign the registration over to me at point of sale then mail the title later. Can one of you studs help me out with any personal experience you may have? Much obliged. ~ Roo.

[Premium Parrots]

You are supposed to meet at the dealer. Anything else wouldn't be kosher....in my book. A friend recently had a stroke and had to sell a Dodge superbee with 400 miles on it. The buyer was from another state. If I remember right the bank required both parties to show up for the transaction. He showed up and the deals been done and neither party had to sweat anything.

If you are in doubt contact the sellers bank and ask them what their policy is. Thats easy to do. They may have you make the money order out to them, to be safe. Good luck.


Get that seller down another $150-$200. Sales of everything are slow now. You should still get it and maybe cheaper.

[lxskllr]

I'm with PP. With any other method, you're asking to get screwed. When doing prices in your head, don't forget to include any pickup/transportation costs that may be involved in getting the scooter.

[Snusdog]

You are supposed to meet at the dealer. Anything else wouldn't be kosher....in my book. A friend recently had a stroke and had to sell a Dodge superbee with 400 miles on it. The buyer was from another state. If I remember right the bank required both parties to show up for the transaction. He showed up and the deals been done and neither party had to sweat anything.

If you are in doubt contact the sellers bank and ask them what their policy is. Thats easy to do. They may have you make the money order out to them, to be safe. Good luck.


Get that seller down another $150-$200. Sales of everything are slow now. You should still get it and maybe cheaper.

I Absolutely Agree!!!

And if he balks at those terms then 10 to 1 something's up.

[wa3zrm]

PP is correct!

[lxskllr]

PP is correct!

Also- be aware that when you get the title it will be marked SALVAGE. If you ever try to transfer the title, when the person sees salvage on the title, I doubt they will want the vehicle.

Why salvage? I don't think it's been wrecked.

[Bigblue1]

Well I've been in the car business off and on for the last 15 yrs, the last 6 as an F&I guy. being the finance guy I can give you a pretty definitive answer.

Don't do it. Unless you see the paperwork and can call the bank to see if it has been paid off or not. Now all states are different but most require a released title, if you are going to transfer. It sounds to me that this guy is pulling a fast one. I could be wrong. Nonetheless you need a release of title from the bank. If that's not available contact the bank with said party, and find the payoff. there is a good chance that he will let you settle the bill to take ownership. If not let him move on to the next sucker......

[Roo]

Thanks PP. Bellingham, Washington is not a huge town (yes it's the seat of Whatcom County of recent beastiality fame) so I don't think it will be hard to determine who sold this thing to him. They are hard to come by in smaller towns. I think I'll start by calling them tomorrow and saying I have reason to believe I'm about to privately buy a scooter that belongs to them and find out not only what they suggest, but what they could potentially do to me if the guy bails on his payment. Thanks again. Anyone else with experience in these matters who would like to share would be appreciated.

[wa3zrm]

I edited my response.... I read to fast... I was thinking it was a salvage... my mistake.

[Snusdog]

Think of it like this…..in essence he is asking you to send him $1650 for a scooter that he does not own.

Well hell Roo…………………. I’ll sell you the scooter for $750



Probably best to buy it from the owner.

[Roo]

Wow thanks lx and snusdog and bigblue1 and wa3zrm. I was busy clackin away to PP while you were offering more good advice. BigBlue1 I'll look into those terms to get a better understanding. I don't want to lose the deal, but certainly if I have reason to believe it's shady I will exercise patience and wait for something legit. Thanks again guys. I'm going to ask him if we can meet at the dealership and calculate my next move based on his reaction to that. If he falters, ya'll are right and I almost got played for a sucker.

[Roo]

there is a good chance that he will let you settle the bill to take ownership. If not let him move on to the next sucker......

Thanks again Bigblue1. Yeah I think I'll offer to sow up at the dealership with the amount due and give him the rest in cash, or at the very least give him a money order made out to the dealership for the amount due plus whatever's left in cash. You guys are great. Thanks again

[Snusdog]

find out not only what they suggest, but what they could potentially do to me if the guy bails on his payment.

The guy you are buying from (Mr. X) does not have the authority to act on behalf of the loan holder.

Any deal that you and he make will be strictly between you and him. It will have no bearing on the loan or the loan holder’s claim against the real property

In other words, if he defaults, they will come get the bike

[Roo]

Yeah that's what I meant snusdog, talk to the dealership (title-holder) about their ability to come after me for the bike, and come after the bike itself, if it's registered to me but there is still money due on it. Thank you all again, you have reaffirmed what seemed right to me -- gotta get this guy to meet me at the dealership or whatever it takes to get the title in my hand upon receival of the bike or the deal is off

[Snusdog]

Well done……………….. I just poured you a glass Tulla DEW on the rocks…………….but since you’re not here…......…and I don’t want the ice to melt and water it down…………..well……………..it’s good.


tha D 8)