Title Transfers on used car with existing loan?

[fellowx]

I'm thinking about buying a used 2003 Mitsubishi Evolution. The seller is selling it for $24,400 with only 16K miles on it. The car's owner is a female. She recently received a company car for her commuting and I'd be more than willing to take it off her hands..

But I've alawys bought used cars that were paid off. Normally they sign the title over to you and then you sign it--bring it over to the DMV--and pay the taxes, within 6-8 weeks a Title comes in the mail.

Now is this the same process if I buy a car that the original owner still owes a balance and their bank holds a lien on it. I'm assuming they would have the Title and would just sign it over to me. And then repeat the process above? Or would their existing loan have to be paid off first--what would be the title transfer process?

[docopharm]

Originally Posted by fellowx

I'm thinking about buying a used 2003 Mitsubishi Evolution. The seller is selling it for $24,400 with only 16K miles on it. The car's owner is a female. She recently received a company car for her commuting and I'd be more than willing to take it off her hands..

But I've alawys bought used cars that were paid off. Normally they sign the title over to you and then you sign it--bring it over to the DMV--and pay the taxes, within 6-8 weeks a Title comes in the mail.

Now is this the same process if I buy a car that the original owner still owes a balance and their bank holds a lien on it. I'm assuming they would have the Title and would just sign it over to me. And then repeat the process above? Or would their existing loan have to be paid off first--what would be the title transfer process?

Existing loan has to be paid first - title is mailed to seller - seller signs title over to you - you go to dmv to do transfer. Seller assumes the risk that you won't wreck the car, b/c you cannot get insurance on it until the title is in your hands. When I have done it, I send a tellers check to the lender for the balance of the loan and then another check to the owner for the difference (if any). Also be sure to get a notarized bill of sale.