Topic: Any California DMV experts here?

[NT-OUTBACK]

So I loaned this person $4500 and I have the title to their 2003 PT Cruiser, I'm not having concerns that this person may try and Wenzel their way out of the contract we have.

We have a contract drawn up for me to be paid back by September 1st and they will get their title and spare key back when they do.

I'm now thinking I should cement this deal in concrete, by taking the signed over title to the DMV and being put on as the lien holder. I'm a little concerned about the fees Will the DMV make me pay sales tax because the owner used the vehicle as collateral to secure a loan.

My biggest concern is the peson is suppose to sell their house, but at the pace they are moving and the current market conditions they might flake out paying me. I offered them the chance to take the tile to a bank for a loan, but the borrower skirted the question.

[8D3TOY]

I do not think you will be taxed on it because you are not the registered owner you essentially loaned money on the car as far as the DMV sees it.  This might help.     http://www.dmv.ca.gov/pubs/brochures/howto/htvr18.htm

[Shoyrtt]

I do not think you will be taxed on it because you are not the registered owner you essentially loaned money on the car as far as the DMV sees it.  This might help.     http://www.dmv.ca.gov/pubs/brochures/howto/htvr18.htm

But as far as the DMV and the rest of the world is concerned, 9VLick is not the "legal owner." Check with the DMV the process and fees to be placed on title as the "legal owner."  The link by 8D3Toy shows you how to remove the legal owner (usually the bank or factory lender) from title (actually the legal title and equitable titles merge ). You do not want to transfer both legal and equitable title (registered owner) in your name. If Mr. PT Cruiser decides to crash and kill someone, there might be liability on your part if you are the equitable owner. 

[NT-OUTBACK [OP]]

Guess I'm off to the DMV in the morning

[BLACKDOG]

Guess I'm off to the DMV in the morning

I'd let the guy know what you're doing.  I think it'd just make things easier   it could potentially cause problems down the roadi f he finds out.  just my

[NT-OUTBACK [OP]]

I'd let the guy know what you're doing.  I think it'd just make things easier   it could potentially cause problems down the roadi f he finds out.  just my

It's worse than a guy, it's a woman. I explained the terms of out contract numerous times, and warned her if and when the time comes and I'm not paid. I will take the car. I don't think that part has sunk in yet. I hope she does not think the friend card with tears will work.

She knows I cannot carry this loan for a long period of time.

The whole thing thinking back makes me sick, I should have never loaned the money in the first place. 

[BLACKDOG]

Doesn't it suck when you do something nice, and then it comes back to bite you?   

Had it happen before, hope it all works out

[NT-OUTBACK [OP]]

Doesn't it suck when you do something nice, and then it comes back to bite you?   

Had it happen before, hope it all works out

It's nibbling on my brain from seeing this person taking their sweet time prepping their house. They have a nice chunk of equity which is making me sleep easy, but I hate loaning money to anyone.

[kneedownnate]

Ask her if you can help her get the house ready a little quicker.  Remind her that the slower the market the longer she'll need to show the house, so any time wasted is a greater waste than she realizes.

[NT-OUTBACK [OP]]

Well I'm moving to Chico on Thursday so I cannot be much help.

[*FFC*]

I am pretty sure if the title's in your name, you're responsible for any and all fees/damages (as in if in an accident) etc....

[8D3TOY]

The title wont be in his name, he is not the legal owner he just has a lean against it that gives him first right to payment should the vehicle be totaled or sold or whatever.  I must have linked the wrong page there is one that explaines becoming the leanholder.  I carried paper on a truck once when we sold it to one of our drivers, he sold it a year or so later to someone else who could not transfer title until the lean was satisfied it went on for quite a while and we could never locate the truck to get it back,so after everyone suing each other the truck was found in a canyon totalled, my lawyer then was able to transfer the lean to the original dudes house so we were covered.  It is there for your protection. But you do need to make sure that she is always insured.

[Rocksurfer]

As the Legal Owner of a vehicle you would not be responsible for anything that happens to it or with it. The responsiblilty will be with the Registered Owner. The DMV may try and tell you that you can't do that but you can. You are only holding a note on the vehicle, just don't charge any interest (or don't tell the DMV you are, if you are) because that would make you a lending co.