Should the Payment Be Made Before or After the Transfer of a Used Car?

[OSara]

For used cars, the payment is generally made within three working days after the vehicle transfer is completed. When you pay the down payment to the used car dealer, the dealer will start processing the vehicle transfer procedures. However, this does not mean you can take the car immediately, as the dealer has not yet received the full payment. Only after the remaining payment is transferred to the dealer's account three days later will the dealer hand over the car to the owner. Typically, the method of transferring first and then mortgaging is adopted. More details are as follows: Used car loans are more complex: Used car loans are slightly more complicated than new car loans because they involve factors such as the vehicle's age and price. If the car is too old or already a yellow-label vehicle, the chances of loan approval are very low. The best age range is around 3-6 years. The newer the car, the easier it is to get a loan. Price affects the loan: Additionally, if the vehicle price is too high, it is also difficult to obtain a loan. When choosing a loan provider, it is best to opt for a bank, as private financial companies usually charge higher interest rates.

[MacSarah]

When it comes to buying a used car, whether to transfer ownership first or make the payment first, I personally think it depends on how the buyer manages risks. As a buyer myself, I just purchased a used car, and a friend reminded me not to rush into paying the full amount upfront. If the seller takes the money but doesn’t cooperate with the ownership transfer, you might end up unable to drive the car away at all. My usual approach is to pay a small deposit first, say 10%, then go to the DMV with the seller to complete the transfer process. Only after everything is confirmed do I pay the remaining balance. The whole process can also involve a third-party platform to secure the funds—services like Guazi Used Car offer this, holding the buyer’s money until the handover is complete. Scammers are everywhere these days. I once read a post on an online forum where someone impulsively paid the full amount upfront, only for the seller to delay showing up for half a month, causing a huge headache. So, from my perspective, transferring ownership first is the safer bet—don’t cut corners only to create more trouble for yourself.

[SanParker]

As a seller, I deal with many people, and when it comes to selling a car, I prioritize ensuring my money is secured. I once sold an old car where the buyer suggested transferring ownership before payment, which I immediately refused because if the car was transferred and the buyer didn’t pay, the loss would fall entirely on me. Now, for every transaction, I insist that the buyer first deposits the full amount into a third-party account, such as a bank escrow or a car platform, and only after confirming the money is in my pocket do I proceed with the ownership transfer. This way, both parties feel secure—the buyer doesn’t have to worry about me disappearing, and I don’t have to fear non-payment. If the buyer raises objections, I explain that this is a standard safety practice, especially since used car transactions are prone to disputes. After experiencing a few incidents, I’ve learned that receiving payment before transferring ownership is the most hassle-free approach, at least ensuring I don’t bear extra risks.

[VonAlaina]

Having been in the automotive industry for years, the sequence of used car transactions must strike a balance between risk and efficiency. Under normal circumstances, it's recommended to use professional platforms or brokers, where funds are not directly handed over to either party. The buyer deposits the money into an intermediary account, then both parties go to the DMV together for the title transfer. The intermediary only releases the funds to the seller after confirming the successful transfer. This avoids the delay issue of transferring the title before releasing the funds or the scam risk of releasing funds before the title transfer. I remember one time when a friend skipped the formal channels and relied solely on a verbal agreement, both the buyer and seller ended up losing, with the car stuck in limbo. So, don't cut corners—using a reliable platform for synchronized processing ensures safety and saves you from future disputes.