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Purchasing car from private party with DCU auto loan

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Established Member

Purchasing car from private party with DCU auto loan

I'm planning to fly down to Texas on Monday to purchase a car from a private party. He still owes $42k on the car and I'm going to pay $20k directly from my account and $44k from a DCU auto loan. 

 

The lienholder is a local credit union (in Texas) and has the title on hand at their main branch (where we will be doing the transaction) available to sign over. I spoke with the seller's credit union and they said if I paid off the lien by cashier's check, they would hold the title for 2 weeks while the check clears. They also said if I wire the money, they would be able to sign off and release the title the second the payment hits their account. 

 

Do you think I can get DCU to wire the ~$42k directly to the lienholder to pay off the loan and the rest out to the seller? I've been getting conflicting information when I called DCU. The first agent told me that's they could do that, but the second agent told me that the check will only be made out to the seller and that he has to first pay off the lien, obtain a clear title in his name (thus adding another 2 weeks to the transaction), before they will cut out a check to him. 

 

We would conduct the entire transaction at the seller's credit union so they can verify  with DCU the payoff amount and all of the account information. I don't want to fly out 1800 miles just to find out DCU will not transfer the money. Would I be better off going in-branch to discuss with a loan officer?

Message 1 of 5
4 REPLIES
Valued Contributor

Re: Purchasing car from private party with DCU auto loan


@popc0rnx wrote:

Would I be better off going in-branch to discuss with a loan officer?


Sounds like it to me

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Message 2 of 5
Valued Contributor

Re: Purchasing car from private party with DCU auto loan

Are you buying the car for $64,000? $20,000 of your cash plus $44,000 DCU loan?

 

I would not buy the airplane ticket quite yet. Hopefully the DCU representative can help you navigate this multi party transaction.

 

Please let us know how it works out...

Message 3 of 5
Established Member

Re: Purchasing car from private party with DCU auto loan


@Appleman wrote:

Are you buying the car for $64,000? $20,000 of your cash plus $44,000 DCU loan?

 

I would not buy the airplane ticket quite yet. Hopefully the DCU representative can help you navigate this multi party transaction.

 

Please let us know how it works out...

 


Yes $64,000 total, $44000 loan and $20000 of my cash.

 

The loan officer told me in no circumstances would they involve the lienholder at all. The transaction is between me and the seller, and not me, the seller, and the lienholder. I got a check paid directly to the seller. 

 

The seller is worried about cashier's check fraud but the loan officer told me that when he went to deposit the check, he could have his bank call DCU and they would verify availability of the funds immediately - thus eliminating the hold they usually put on depositing cashiers checks. 

Message 4 of 5
Regular Contributor

Re: Purchasing car from private party with DCU auto loan

Man, I wish I could visit a DCU branch like that.

 

2018-07-13 14_19_56-Window.png

 

 

 


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