Quote:
Originally Posted by ken0042
I think the point was to make absolutely sure the loan payment is going to this car that is being purchased. Seeing as they aren't going to the actual "bank" where the loan is from, it wouldn't be hard to have a payment go towards a different loan.
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The buyer must provide the bank teller with the loan payout letter and the letter should include the loan number, VIN, and the payout balance. I don't know how you could pay off a different loan without the bank teller catching that unless the seller had several car loans from the same institute. This is pretty common stuff as private used car sales are carried out this way every day and you don't hear of too many scams. Buyer can always ask for a copy of the payout letter a day in advance and perform a check.