Buying a sled that has a lien

[GMCRMK]

I hope to buy a sled tommorow but it has a lien against it so I won't get a title till it's paid off. Should I hold some $ till I get the title? Any legal paperwork I should draw up? Any advise?

My gut tells me no title no cash but there's got to be a way to do the deal and protect myself. It's also an out-of-state title.

Thanks

PS It's already registered for '08

 

[AKSNOWRIDER]

bill of sale and pay the money to the bank..making sure the machine is paid off in full to the bank first, then he gets the balance of sale price....

 

[Fredly]

I'd head to the lender(bank) and do the transaction there.

 

[GMCRMK]

It was financed through Polaris (HSBC) so no luck going to the bank hand-in-hand.

 

[LRB]

I would give him just enough to pay it off and keep the rest until you get the title and make sure you get a bill of sale and you get the sled thats what i would do then when you get the title give him the rest

 

[AKSNOWRIDER]

he should be able to call them, and give them specific permission to talk to them about paying off the loan..and then you can pay them on the phone..bank transfer/ check....

 

[snowmanx]

he should be able to call them, and give them specific permission to talk to them about paying off the loan..and then you can pay them on the phone..bank transfer/ check....

You need to find out what the payout to the bank is..then send them that much and the owner gets the rest.

If you trust the guy you're buying the sled from, give him the money, and he doesn't pay off the loan, I thnk you'd be responsible for the rest of the loan, otherwise the back could reposses the sled.

 

[Ricta]

He needs to get you a payoff amount from the bank and that amount should be sent directly to them by YOU. Same with any financial institution.

 

[Gromit]

And get paperwork - do not rely on verbal agreements

Make sure you have a paper trail of all agreements and transactions with signatures. If any party is reluctant to supply you with such, run from the transaction. Make sure you have a release from the loan company that says the sled is truly debt & lien free.

This is a business transaction. Even with friends, make sure the papers are in order. My $.02 CDN.

 

[cowboysedge]

I just sold a truck that had a lien on it. We met at the bank, they paid off the truck. The bank sent me the title a month later and forwarded it to the owner. I was in Idaho and they were in Utah.

The truck went with them at the time they payed the cash. All they needed for the dmv was the bill of sale. The dmv said they would issue a temp license until the title showed up and then they would sell the real one. The insurance just needed the vin #.

IMO If I couldn't take the sled I wouldn't give them the cash. I would call the polaris finance company and your dmv to see just what it takes to purchase the sled.

 

[GMCRMK]

Thanks for the replies & advice.

 

[sledn]

Phone the lender for the payout amount,then give the owner a (check #1)check in the lenders name and the remainder (cheque # 2)in the sellers name.Only the lender will be able to cash cheque #1.

 

[Bull Elk]

Phone the lender for the payout amount,then give the owner a (check #1)check in the lenders name and the remainder (cheque # 2)in the sellers name.Only the lender will be able to cash cheque #1.

THATS A GREAT IDEA.

 

[Coxy]

I just bought a truck from Wa state that was financed through ford (lein) and i live in BC. So i need the title at the border 3 days in advance to bring the truck back. I did what others stated. One bank draft directly to ford motor, for the full ammount owing, and one to the gentleman, for the remaining. Bought the truck as a normal individual, and brought it to a friends place right close to home by the border. Now i just wait for the title, and am golden.

 

[LISA]

I sold a sled with a lien and they trusted me to pay the bank which I did and the bank sent them the title. But the people came from far away and only could come on the weekend when the bank was closed so I had the bank call them and work out the details. But your safest bet if you do not know this person is go to the bank for the transaction. There is always the chance they will not pay the bank and you won't get your title. Or maybe a cashiers check made out to the bank that is owed then they cannot cash it. Or a cashiers check made out to the bank and the person.

 

[GMCRMK]

Bought it.

Had a cashier's check made out to his bank. Bill of sale's made out for Idaho & Utah with notations that he is to pay off the loan and release title to me. I think the rest should be smooth. Thanks again.

I'm psyched. I'm retiring my 2000 RMK that just turned 9k miles (what a great little sled) and picked up an '04 700 151" RMK Escape with less than 1k miles.


KEEP ON SNOWING !