Automotive

Private sale with lien, closed at a dealership? Sketchy?

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  • Jul 29th, 2019 8:20 pm
[OP]
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Aug 18, 2005
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Burlington-Hamilton

Private sale with lien, closed at a dealership? Sketchy?

Hi everyone,

I am planning to buy a car from a private seller. This is a high-level trim that's not so common, and the car is in impeccable shape.
The seller is an older gentleman with limited English. I met this man at his place. Judging from the house, he's clearly very financially well off. I also verified on the car ownership and his driver's license that they match his house's address.

He bought the car at a dealership, probably with 0% financing, through his nephew who works there. I verified on the ownership, it showed Toyota Credit.
The seller wants me to deal directly with his nephew to get the paperwork done, because the nephew is very knowledgeable about the process. (I suspect also the seller has limited English reading/writing skills.)

I confirmed with the seller that it's a private sale, even though his nephew works at the dealership.

Now the nephew wants to meet at the dealership to do the paperwork for the private sale.
I think this is because the seller is probably getting the safety inspection done at the same dealership, and he is also buying a new high end Lexus car at the same place.

1. Does this sound fishy? A private deal, closed at a dealership?

2. How does the pay off for the lien work? Can the Lexus dealer verify it was paid off with Toyota Credit? (This is not some sketchy parking lot deal, the seller has given me no reason for suspicions, but I realise you can still get in a jam if somehow they don't pay off the lien.)

Thanks for your comments...
What if there were no hypothetical questions?
9 replies
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Apr 21, 2004
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How many months has he paid for his car and is he getting a bad deal selling to you at the pre-arranged price? If it's too good to be true, either the older gentleman is selfless or they may be a catch because he can probably trade it in for his Lexus car and save on HST. I mean if he's paid 24 months out of 36 and you are paying the remaining balance + $5k, it's almost like giving you the deal of a century.

I can't give any advice about the lien except to talk to Toyota Credit directly to take you through the right steps of paying it off and transfering ownership.

Also, can his nephew do everything on this behalf (power of attorney) without him signing documents and such?
[OP]
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Aug 18, 2005
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alanbrenton wrote: How many months has he paid for his car and is he getting a bad deal selling to you at the pre-arranged price? If it's too good to be true, either the older gentleman is selfless or they may be a catch because he can probably trade it in for his Lexus car and save on HST. I mean if he's paid 24 months out of 36 and you are paying the remaining balance + $5k, it's almost like giving you the deal of a century.

I can't give any advice about the lien except to talk to Toyota Credit directly to take you through the right steps of paying it off and transfering ownership.

Also, can his nephew do everything on this behalf (power of attorney) without him signing documents and such?
I expect the owner of the car will sign off on the paperwork. The dealership is close to his home.

You make a good point about him trading it in... The asking price is about half way between retail and wholesale for this car, but trading it in seems more logical. But I already found the Carfax is clean.

I should talk to his nephew and bring up this point, as any car salesman would have the same idea.
What if there were no hypothetical questions?
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Apr 21, 2004
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If his Lexus is valued at $20k more, then the HST he would have saved would be $2,600.

Maybe he just doesn't want the dealership to make money. Some people may really want to sell to a new owner than a dealership who will make a profit off it, same case with houses were a sob story could touch a seller's heart.

About a decade ago my friend sold his three to four year old CTS for a lot lower price to someone who had a nice and interesting story instead of a dealership. I think he sold it for $12k USD when he bought for a little over $30k. I was surprised how bad the resale value was. But my friend's family is well money enough and he was living the US for good.
[OP]
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Aug 18, 2005
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I don't know what new car he's buying, but he's asking about $2500 above wholesale price, which is still $2500 below retail.
What if there were no hypothetical questions?
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Apr 21, 2004
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Just confirm with ToyotaCredit.the proper steps to take To take over the vehicle.

Good luck and enjoy.
Sr. Member
Jul 20, 2012
680 posts
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Toronto
My Z06 was a private sale but the paper work was done through a dealership. The seller was purchasing a new vehicle at the dealership. It was all on the up and up. It was better for me I had a sales receipt (which I've since lost) from the dealership.
I purchased the car in New Brunswick and drove it back to Ontario via the States. The receipt came in handy at the border.
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Brian71 wrote: My Z06 was a private sale but the paper work was done through a dealership. The seller was purchasing a new vehicle at the dealership.
Why didn't the seller just trade in the Z06 to get a discount on the sales taxes?
What if there were no hypothetical questions?
Sr. Member
Jul 20, 2012
680 posts
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Toronto
Jucius Maximus wrote: Why didn't the seller just trade in the Z06 to get a discount on the sales taxes?
I think he saves on the HST, I didn't get it either. The good thing was I left a deposit on my credit card and wired the balance. I didn't give the seller a dime, the dealer took my payment.
[OP]
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Just to let you know, I found out that the car in question is actually leased by the current owner.
I don't think this trade-in advantage is as much for the leased vehicle, since they would have to pay the sales taxes on the lease as part of the pay-off, in order to release the lien.
What if there were no hypothetical questions?

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