Bill of Sale / Promissory Note

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  #1  
Old 05-21-14, 12:56 PM
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Bill of Sale / Promissory Note

I may be taking a trip to NC this weekend to look at a vehicle. It's a 10-hour drive round-trip and the bank needs to send a check to the lien-holder in the exact amount (not yet determined). Problem is, I'm not sure I will be buying the car until I go look at it, and if I like it, I want to drive home in it, not have to take another trip down there after the lien-holder receives the check. I figured a small deposit ($500?) and a promissory note would appease the seller so that I could drive the car home with me. Is this a legitimate way of purchasing an out-of-state vehicle? If I have to take another trip down there, I don't think I'll go in the first place. It's a really nice car at a good price and they are extremely hard to come so I don't want it to slip away.
 
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Old 05-21-14, 01:28 PM
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I am not a lawyer so this is just my personal opinion but I think you should stay with the lien holder. The lien holder too needs to be an honest company and preferably a bank you know and trust. The owner should be willing to at least let you test drive the car and have it checked by a mechanic you choose before the sale goes through. Once you are satisfied then you can then let the lien holder know that you are and then they can release your money to the seller. It really is the better way and avoids complications down the road.
 
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Old 05-21-14, 01:52 PM
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I think Hedge is not reading it correctly?

The way I read it, YOUR bank needs to transfer the exact amount to the lien holder in NC, yes? But they can't do that til you agree on a price and it may take a few days to complete. So you want to give a deposit and a promissory note and take the car?

If thats correct, then the lien holder will prob be the one that determines if you can take the car before payment in full is received, not the person who has the car now if they are different. If this is a dealer or a title loan place or even a repossession, I'm sure they want ALL their money.

If I were either the owner or lien holder...I'd say no way, no how is that car leaving until payment in full is received, esp when it will be going across state lines! Esp with all the CL and internet scams that go on.

And, if they did, I don't think I'd want to be driving a car that may have issues with the title or registration. What if the plate number is on some LE hot list somewhere? And what about insurance if something happens? What if they decide to make a little fast cash and report it stolen?
 
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Old 05-21-14, 04:28 PM
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Yeah, I started to reply earlier, and had to take care of something else, but agree with Gunguy. Title, registration, insurance, third party involvement, a weekend, holiday weekend to boot, and a long 10 hours to get back home, it has too much potential to turn into a way longer weekend than you want, even if you do happen to get an understanding magistrate. I would count on two trips, with the first being strictly to work out the details, or look for one closer to home.
 
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Old 05-22-14, 06:37 AM
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The way I read it, YOUR bank needs to transfer the exact amount to the lien holder in NC, yes? But they can't do that til you agree on a price and it may take a few days to complete. So you want to give a deposit and a promissory note and take the car?
Exactly.

It's a private party, we would both sign a promissory note saying that I promise to buy said vehicle for such amount and that if full payment isn't made within X amount of days, then I would have to return the vehicle or face legal action, which I would have to pay for, blah blah blah. I would be taking off the tags and towing it home and my bank would send a check made out to him AND the lien holder for the remaining balance.

look for one closer to home.
There aren't any. Try searching for a white 2009 Acura MDX with tan interior for under $19k within 200 miles of 22025 and you won't find anything. I've been looking for weeks. Found a couple, but they slipped away, and I'd prefer to deal with a private seller. This vehicle sounds to be in excellent condition, one owner, garage kept, highway miles only, etc.
 
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Old 05-22-14, 06:51 AM
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I thought about it from his perspective, and there's no way I would let someone drive off in a vehicle I was selling just because he/she signed a promissory note. I've been talking back and forth with the seller and have seen several photos so I trust it is in as good of condition as he claims. I'll likely just have my bank cut the check and have the vehicle shipped to my home for $500. It's a little bit of a gamble, but no different than buying a vehicle on eBay, which I've done before (other than the buy back protection).
 
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Old 05-22-14, 06:51 AM
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Well, now that everything is clear, I think your best bet is to deal with the owner. The lien holder doesn't know whats going on with the vehicle. If the owner agrees (I sure wouldn't) then thats all that matters. You'll just have to trust him or the lien holder to forward the title when it's time.

I'd call them and discuss it before I drove down there.
 
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Old 05-22-14, 06:54 AM
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I agree with GG, no way is a lien holder going to allow you to take ownership before they have the cash in hand. The recourse once the vehicle is gone is far too complicated for them to go that route.

If the lien holder is an institution (bank or other) they are the ones to be talking to as they do this all the time and assuming your loan organization does as well, they will know how to shake hands and make this happen. For one, they wire money all the time. Establish the final numbers, call your bank and have them wire the funds to the lien holder.

Once you own it, call your insurance company and confirm the deal, which you should have already informed them about. Most insurance companies who are already insuring other vehicles for you will cover a vehicle for a few days based just upon a phone call but I prefer to stop in and discuss the exact coverage I would be wanting.

Bud
GG you're just too fast for me
 

Last edited by Bud9051; 05-22-14 at 06:56 AM. Reason: comment
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Old 05-22-14, 06:54 AM
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Oops...nevermind...sounds like you came to the same conclusion w/o me.

You may want to see if someone would drive it up for less money. Heck, I'd find a buddy and drive 10 hrs up and back for $300 or so.
 
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Old 05-22-14, 08:09 AM
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I'd call them and discuss it before I drove down there.
Yes, of course.

You may want to see if someone would drive it up for less money. Heck, I'd find a buddy and drive 10 hrs up and back for $300 or so.
Changed my mind. I would pick it up and keep the $500 in my pocket.
For one, they wire money all the time. Establish the final numbers, call your bank and have them wire the funds to the lien holder.
It will be a Sunday and Monday is a holiday so I won't be able to wire anything until Tuesday, at which point I will be back home vehicle-less.

The seller needs to talk to his bank to figure out the payoff and he will be getting back to me. If that happens quickly (later today or early tomorrow), I bank could cut me a check and I'd take it down there with me. But that would require the lien-holder to send a copy of the title on a short notice, which I feel wouldn't happen. I'm headed down that direction this weekend to visit family, and planned on driving the extra 3 hours to get the vehicle. Doesn't look like it's going to work out that way, and I'll probably be making a special trip next week sometime. Oh well.
 
  #11  
Old 07-20-14, 03:15 PM
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You are actually in a good position if the seller is willing to "lend the car to you" receiving the nominal $500.00 deposit and signing some of the paperwork. You would need to secure the car once you get it home, then complete the paperwork using a different car for transportation.

I would be very uncomfortable making a big payment first and not able tot ake possession of the merchandise.
 
  #12  
Old 07-20-14, 03:37 PM
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Allan: A little late to the party, mossman bought the car and has started another thread about some problems with it:

http://www.doityourself.com/forum/bu...-out-deal.html
 
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