Article: If you're interested in buying a used car with finances owed, you may want to first insist that the seller pays off his debt before you give him any money. You may want to suggest that the seller take out a personal loan to cover the costs, in order to secure the title before you buy it from him.  If you insist that the seller pays off his loans before you buy the vehicle, make sure you get a signed, written proof of payment from the seller's bank or financing company. If you can, accompany the seller to the bank or financial institution so that you can oversee the process and know for certain that the vehicle's loans have been paid in full.  If you cannot get something in writing from the bank verifying that the loans were paid in full, you may want to run another search through PPSR or HPI, if those options are available where you will be purchasing the vehicle. This will allow you to verify that the loans have been settled. If you're still interested in purchasing the vehicle, try to renegotiate the price you would pay to the seller, after factoring in how much he still owes on the vehicle's loans.  Subtract the amount that the seller owes to the bank from the price you initially thought was a reasonable sales price for the vehicle. Offer to pay the seller that amount, after you've paid off the remainder of the seller's loan to the bank or financial institution who has a lien on the vehicle.  Have the seller send a dated payout quote directly to you. Once you've paid off the loan, and given any remaining money to the seller after agreeing on a price, you can have the title transferred to your name. If you worry about the seller not holding his end of the agreement to pay off his car loans, you can always set up an escrow account. This would hold your money for a stipulated period of time, during which the seller must pay off his loans and transfer the title to you in order to receive your money. In the United States, the Department of Motor Vehicles recommends using PaySAFE Escrow.  Set up an account at https://paysafeescrow.com/car-escrow. Create a transaction, and have the seller agree to the terms and conditions.  Deposit your money. PaySAFE will not release the money to the seller until the loans have been settled and the title is ready to change hands. By getting a dealership involved, you ensure that there will be a paper trail that proves all payments were made and that ownership is legal. You may have to pay more, as the dealer will want to make a profit by buying the car from the seller and in turn selling it to you, but you will have peace of mind with your purchase. Expect this to be a costlier option, as the dealer will want to make some money from the sale. You could ask the seller to pay the dealer out of his or her profits, so that you do not end up having to pay more for the car.
What is a summary of what this article is about?
Ask the seller to pay. Renegotiate the price. Set up an escrow account. Ask a dealer to broker the sale.