Buying car from private seller out of state - need advice

[rob.]

Hello,

I live in Florida, I’m buying my dream car from a private in New Jersey.

I have a purchase agreement between us. I’m in the middle of trying to obtain financing. Only had time to go to two credit unions today who explained they rarely do out of state and if they do, seller has to record lien on title before they release funds which will complicate things I don’t think anyone is going to do anything with their title except transfer at the DMV when they get their check.. I didn’t get a hard no but was advised to go buy the car in state..

Another one flat out told me they only do in state loans

What are my options here? Credit is good, down payment is good. Just worried about logistics here.

I’m considering these options:

Discuss this with a friend who’s a sales manager at a dealership to see if they’ll buy the car and resell to me.

Try more credit unions

Try the credit union the private seller used to finance through(might make it easier, might not..)

Fly to New Jersey and finalize this over there with the seller to facilitate the process…

Contacting a titling agency in New Jersey to ask for more guidance

[86Zed]

Have you tried any of the online credit unions? I financed cars through LightStream in the past including two purchased out of state. There were no requirements placed upon the seller or title.

[rob.]

Originally Posted by 86Zed

Have you tried any of the online credit unions? I financed cars through LightStream in the past including two purchased out of state. There were no requirements placed upon the seller or title.

Are those personal loans or secured auto loans? I’ve heard interest rates tend to be slightly higher there?

[MartinInKansas]

You might try to get the seller to list on Autotrader.com. They have a “Private Seller” process where Autotrader handles all of the details of the purchase and transfer process. There are some lenders available also.

For example, funds are wired to Autotrader and held in escrow until all conditions are met.

Autotrader Private Seller

[Gemini562]

Flying to New Jersey is the most practical. It’s direct, gives you full control, and allows you to get everything done quickly.

[BlkGS]

What's so special about this car that you're having to buy it out of NJ from FL?

Does the car have a loan on it still? If so, the easiest thing you can do is finance it first with a bank you can use in NJ to complete the deal, then refinance for a better rate afterwards. I usually do this with dealerships because they always try to add points to the rates.

[rob.]

Originally Posted by BlkGS

What's so special about this car that you're having to buy it out of NJ from FL?

Does the car have a loan on it still? If so, the easiest thing you can do is finance it first with a bank you can use in NJ to complete the deal, then refinance for a better rate afterwards. I usually do this with dealerships because they always try to add points to the rates.

Dream spec, committed myself to finally do this by sending some money in advance to reserve the car until I was back from travels.

No loan on it, private seller has had lien released on title and has paid off the vehicle.

So you’re saying call a bank or credit union based in NJ, sort it all out then meet seller there to close it out? Seems like this may be my best option.

Was looking at LightStream but seems that interest rates might be too high or just hard to get approved in general even with good credit and income.

[86Zed]

Originally Posted by rob.

Are those personal loans or secured auto loans? I’ve heard interest rates tend to be slightly higher there?

Auto loans. Rates aren’t what they used to be and not nearly as competitive, but approval was nearly instantaneous.

[IanH]

My local credit union just let's you finance the car, you get the check and then show up with it to buy the car.

I use DCU in MA but I would want to work with a local credit union...

[BlkGS]

Originally Posted by rob.

Dream spec, committed myself to finally do this by sending some money in advance to reserve the car until I was back from travels.

No loan on it, private seller has had lien released on title and has paid off the vehicle.

So you’re saying call a bank or credit union based in NJ, sort it all out then meet seller there to close it out? Seems like this may be my best option.

Was looking at LightStream but seems that interest rates might be too high or just hard to get approved in general even with good credit and income.

Lightstream is super easy their rates aren't as good because they do unsecured lines of credit. That's probably a good thing in your case, since if this is your dream spec you don't want to worry about it not booking for as much as you think it's worth.

That said, the perk of a local bank would be you can do the deal there, they take possession of the title, you drove off with your new car, everyone stays happy.

[jkoral]

Originally Posted by MartinInKansas

You might try to get the seller to list on Autotrader.com. They have a “Private Seller” process where Autotrader handles all of the details of the purchase and transfer process. There are some lenders available also.

For example, funds are wired to Autotrader and held in escrow until all conditions are met.

Autotrader Private Seller

I didn't realize Autotrader had an escrow service. I've seen a few posts here on bimmerpost of folks having a good experience with
https://www.keysavvy.com/escrow as well. I would definitely use such a service if buying a car out of state with a loan on it.

[tturedraider]

Pentagon FCU will let you handle recording the lien. www.penfed.org I’m not 100% sure how they would handle it with you being a brand new member, but they do this all the time, because they serve many military members. Anyone can join. You first spend about $10 - $20 to join a military support organization that makes you eligible for membership. https://www.penfed.org/member-benefits

You should absolutely plan to travel to New Jersey to get the car in person!!!!!!! I have bought all but one of my Bimmers by long distance and I have always traveled (as far as 1,000 miles) to see them in person and drive them before the money changes hands.

[STi from DSM]

Never send money to a private party to hold a car.

[tturedraider]

Originally Posted by STi from DSM

Never send money to a private party to hold a car.

Agreed!! The OP took a risk doing this. Hopefully it wasn’t a lot of money.