Will escrow service pay off the sellers car

Asked by B_rad13 Jun 03, 2022 at 11:41 AM about the 2015 Dodge Challenger R/T Scat Pack Shaker RWD

Question type: General

Will an escrow service pay off an auto loan??  We found a vehicle but the seller
wants us to pay off the loan then 10 days later she will sign over title once she
gets it.  We are not comfortable with this transaction and were wondering how
others handle private sales of cars not paid off yet

1 Answer

155,195

Most times you and the seller go to the finance company that's holding the title. You pay the finance company directly and take the vehicle. When the seller receives the title they sign it over to you. Be sure to get a written receipt from the finance company for your payment and a written statement from the seller stating that they will immediately sign the title over to you upon receipt. You should both sign the statement and each keep a copy. Getting a third, uninterested, person to sign the statement as a witness is helpful. If the seller balks, move on to another vehicle. Hope that helps! Jim

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