Buying a car private party with remaining loan

[RatLabGuy]

I'm looking at buying a car from a guy in another state. Dude owes slightly more than the value (or at least what I'm going to pay him) to a dealer financing service (Mazda financial). He has an app he can make a payoff payment through his bank, or he can mail them a check (I'd send a cashiers check of my own) but then have to wait longer for it to clear - but I'd assume a cashier's check would clear quickly. We're talking 16-17k range.

How would/have you handle this? Typically I'd just pay cash directly or a cashier's check upon walking away with a title in my hand, even ideally we'd meet at the DMV, sign it there and hand in for retitle on the spot. But being out of state and a few hours away makes it more challenging.

I see 3 options, since its not a traditional bank lender we could both walk into and pay directly.

- I hand him a wad of cash, trust that he puts it in the bank and pays off loan, lender send him the title, he signs and mails it to me. Fastest but I'd need a pretty warm fuzzy feeling about it. I could proably request we meet at his bank and I see the deposit and his shows me that its paid off in app.
- I hand him a cashier's check written to him, he deposits it and pays off as above. At least then I have record of the check and deposit. But then I'm assuming I still have to wait for his bank to clear that check, so time added.
- I hand him a cashier's check written to the lender for the full amount, he gives me the difference between what's owed and paid (his underwater amount), he mails that off. Then I have the check as proof of payment, and I know it went to the lender. Then I have to wait for lender to clear check (hopefully fast being cashier's check).

Regardless I'd take the car immediately with a signed bill of sale and copy of dude's license.

Nothing about this feels fishy, just a kid who's underwater on a cool car and an opportunity for me on a hard to find combo.

I'm actually quite shocked I'm not had to deal with this yet

 

[Ron]

Who holds the lien?

 

[RatLabGuy]

Who holds the lien?

Mazda financial Services
EDIT - I'm assuming bc he bought from a dealer and showed me a screenshot of their app w/ the payoff balance

 

[VortecJeep]

can a Mazda dealer handle the transaction in person?

 

[RatLabGuy]

can a Mazda dealer handle the transaction in person?

Don't know but I doubt it. Why would they want to have their time spent on this, they get nothing out of it.
The Mazda Finances info page on payoff options only lists paying in app or via mail or phone.

 

[Shreddinlettuce]

Ive sold a car I had a loan out on to a private party, but he did a cashiers check to the leinholder with the loan number on the check and I met him at the post office, we mailed the check together, and he paid cash for the difference… if can be sketchy but that was the best we could come up with

 

[skyhighZJ]

Send the check and the title comes to you. Buyer gets the car but can do nothing until you send the cleared title. Collateral on both parties. Done.

 

[83oldyoda4x4]

Make sure payoff is at what you are willing to pay, pay check to bank/loan number. they can make you power of attorney on the vehicle and can send you title directly.

I did this on an Electronic title through trulient.

 

[RatLabGuy]

Make sure payoff is at what you are willing to pay, pay check to bank/loan number. they can make you power of attorney on the vehicle and can send you title directly.

I did this on an Electronic title through trulient.

Can you explain more about this notion of them making me POA on the vehicle? Would that give me the power to sign the title as the owner when it comes in, so it can be transferred to me without having to go back to the guy?

Given we are hours apart from one another in different states I don't want to have to meet hom again.

 

[maulcruiser]

Unrelated, but what kind of Mazda are you buying?

 

[Shreddinlettuce]

Unrelated, but what kind of Mazda are you buying?

Miata is always the answer!

 

[drkelly]

How would/have you handle this?

I would be patient and find another car.

 

[justjeepin86]

I would be patient and find another car.

While I get what you are saying, good deals aren't exactly easy to come by these days. So, it may be worth a little leg work.

 

[jeepinmatt]

Unrelated, but what kind of Mazda are you buying?

I hope it’s an FD RX7 but I imagine it’s a Mazda6 or something boring.

 

[CasterTroy]

I hope it’s an FD RX7 but I imagine it’s a Mazda6 or something boring.

If someone still has a loan on an FD RX7 I would be floored

 

[jeepinmatt]

If someone still has a loan on an FD RX7 I would be floored

They cost more now than they did when new, so I’m sure it’s out there somewhere.

 

[RatLabGuy]

I would be patient and find another car.

I'd love to but the feature combo in looking for already has a search radius from Ohio to South Carolina to find any.

I hope it’s an FD RX7 but I imagine it’s a Mazda6 or something boring.

I got a get kid #2 out before I can give up on 4dr vehicles for a DD.

Mazda3 S (2.5l) hatch w 6spd and reasonably low mileage.
Manual transmissions are getting very difficult to find, they only make a small % of the high trim models. Can't get a basic car w a big motor and a stick anymore wo also getting all the extra shit.

 

[04tacoma4x4]

I feel like the seller can reach out to Mazda financial and let them know he’s selling the car to you. You can deal direct with Mazda financial, pay off the vehicle them and they will send the title / paperwork to you.

They may have a few requirements, like a notarized bill of sale on the agreement or something but that’s easy.