I'm looking at a car out of state (in CA). Its a BMW financed by the seller through BMW Financing. I want to buy it outright (cash).

I contacted BMW Financing, they said I would have to pay off the loan. Once funds are clear, they would send the title to the seller, he would forward it to me. I feel like I am kind of hanging my ass out here. So, I'm looking for a safer way to pull this off.

I've bought and sold lots of cars, but always with clear titles. Never with an out of state lien.

How can I purchase this car and protect myself?

If I had to guess, I would say every communication by CERTIFIED MAIL/RETURN RECEIPT and keep copies of everything.

But, I don't really know.

jasons,
What you want to get is an "Authorization to Payoff" form. The form basically allows for the buyer to make the payoff on behalf of the owner/seller and upon receipt of the payoff balance, the lender would surrender the title and forward it to the buyer (person sending the payoff check). You also absolutely, positively must get the seller to sign a Power of Attorney, whereby he, the seller, allows you to get the vehicle out of his name and into your name. Also, I'm sure you need a (seller) signed odometer statement.

Some, or all of these forms may be available from your State BMV or from a friendly, sympathetic car dealership.

Since I do this sort of thing frequently in my profession, if you need an example of these forms, pm me w/your fax # and I'll forward copies to you. Just keep in mind the forms we use have references to a "dealer" rather than an individual, such as yourself.

Paul

OK, so most of that makes sense. Couplaquestions.....

I contacted BMW Finance, they said to have the seller request a "payoff packet", would the "Authorization to Payoff" be a part of that or is that something I would get from my MVD. I'm guessing the MVD. Also, I already thought about getting a power of attorney, but I don't completely understand how that protects me. I know it allows me to transfer the title, but wouldn't I have to possess the title? Or does it give me full power to request lost titles etc? Finally when should I expect to take physical possession of the car... When I send the payoff, or when the seller gets the title? I'm inclined to believe, once I send the money I should have the car.

Thanks for the advice...

I had to do this on a 914-6 I bought the power of attorney basically is the other person signing over all rights to said property. Make sure it has important info (vin#) You can find PoA forms on most state websites.