March 22, 2007

Hello Tony

I found your site and I have some questions regarding purchasing a car with a lien on it . . .

I am from California and will be buying a car form Nevada. The car has a lien on it at the moment and the title is being held by Capital One. I will also be using Capital One to finance the vehicle when I purchase it.

Do you know what is the best way to approach this? Capital One will be sending me a "Blank Check." Could I write this check to Capital One to pay off the other guy's loan so I can get the title? Then bring it back to my state of CA and get the car registered with the NV title?

Then I assume that when the new CA title is issued it would be sent to

This is my first time doing something like this so I have no idea what needs to be done!

Thanks!

Kelvin

Answer:

Hi Kelvin,

You should contact Capital One and tell them the situation. I'm sure they can advise you on the easiest way to pay off the old loan.

Once you get the title the seller will have to sign off on it then you can take it to your local license agency in CA and transfer the title and put the lien on it for Capital One. They will hold the title until the loan is paid off.

When you talk to Capital One ask them how they want you to handle the title transfer. They can probably give you some advice on this as well.

All my very best...

Tony Iorio