Can I do this:

Car being sold by [a] for $15, owes $10 to bank
I take out loan for $18 (because thats how much car's worth)

Give $10 to bank, $5 to owner, keep $3 as a secured loan on my car

I mean i know I can just have the owner give the difference but I rather have the loan write 3 checks instead of 2 (one for bank one for owner)

 

a couple of things...

why take out more than what your paying for the car? cause that $3000 is going to cost you at least $300-$400 or so...

second your bank pays off his bank and then gives you a check for the remaining amount of the car to give to him. You need to get all his bank information...like what bank it is...his full name, and probably the loan account number. and give that info to your bank.

the amount that is owed on his car goes straight to his bank account because in order for the car title to be released to you, his bank needs the payoff. The person that you are buying the car from doest have the title so if give him $15,000 he can just walk away and you dont get a car.

i hope that helps.

edit:
that extra 3k might come in handy, because when you register the car in your name you have to pay Tax on the sale depending on what state you live in. in Texas we have to pay cash or check for the sales tax. but i still dont think pulling extra money on a loan is smart since 1) your payments will be higher and 2) you'll be paying interest on that money that is just sitting around...see what you state sales tax is on used cars and pull that amount out with the auto loan.

Its not good habits to be pulling excess money out every time you get a loan....thats how people get into debt.

 

Well at only $18 dollars for everything I might just cash it out with my piggy bank.

 

Hi Lancer,

Thanks for the reply. I understand that my bank gives a check to HIS bank and he never actually touches the money. The reason I needed the extra money is because its like a low interest loan which can come in handy for me.

From what I understand, my bank would give me 2 checks, one to pay off the bank, one to give to the seller. What I need is 3 checks, one for the bank, one for the seller, one for me lol...

 

you would typically get only 1 check from you bank and that is the money to the seller....now...if you told the bank it was for $18,000 and you get it for $15000, you can talk to the seller and see if he can give you back the $3k...if it is a local transaction of course. but the bank ist just going to give you money for yourself off an auto loan...maybe someone else can chime in on that...

 

WHAT????

the bank is only going to give you the money for what you qualifiy for first of all. Lets say this


car = 15
you qualifiy for 10

You have to come up with the extra 5 yourself. Thats how it works in the real world. The bank is not going to give you more money i have done this before. Now keep in mind the bank is going to go off Nada or kkb value for the car. dearship/seller may want 15 but bank may only give you 12 cause that what they see its worth. At that point you have to come with the difference. Way back when before i got my evo i wanted to get my second eclipse but i wanted a spyder. the bank qualified me for 6200 so i got a check for that. I went to texas and bought a spyder had to talk dealer ship down to 6200+TTL and i paid ttl out of my pocket bank would not give me more

Now lets say

Car 15
you qualifty for 18

if you get that loan for the 18 then yes the dealer/person would have to give you the difference but the title goes to the bank where they will see you got it for 15 and they are going to want to difference. THe only way i see its possible is to get a personal loan for 18 then bank does not even know what your using the money on nor do they care BUT higher intrest rate on those keep that in mind.

 

Don't borrow more than you have too. Borrow enough to buy/tax/title car.