Can I buy a Honda from a private seller that still has a loan on it?

"I want to buy a Honda Insight from a private seller, but he still owes the bank money for it. Can I still purchase this car? How do I do it?"

“The first step is to get pre-approved for a loan. Tell the lender about the Insight that you’re eyeing, and they should give you a certain limit that they’ll finance you for.
Next, you’re going to have to go to the seller’s bank. Here you should confirm:
  • If the seller actually owns the car
  • The payoff amount, and if the seller owes less than what you’ll be paying for the car (so they can meet the loan obligation)
  • If the seller has missed any payments
Most of the time, the other person’s bank will walk you through this, especially if you meet with the seller at the bank.
Get the vehicle professionally inspected as well, as the risk is on you for this purchase.”
Eric Schad
Answered on Jul 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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