I can't produce a title for a vehicle I just traded
The old truck is collateral for a loan. The place that made the loan expects that if you can't pay they can repossess that old truck. If you sell it they can't repossess it.  The dealer needs clean title to be able to buy the truck from you, so they can fix up the truck and sell it to somebody else. I am assuming the the lender has filed paperwork with the state to show their lien on the title. Your options are three: As to option 2: If the deal still makes sense the new car dealer can send the $9,000 to the lender that you forgot about. That will of course increase the amount of money you have to borrow.  You will also run into the problem that this loan that you forgot to mention on your credit application may cause them to rethink the decision to loan you the money. "If your fiancée took a title loan out on your truck you won't be able to trade it in for another vehicle until you pay the loan. The dealer will likely take your ""slightly newer"" truck back because you won't be able to produce the title for the trade until the other debt is settled. Title loans are a terrible idea. You should probably try to pay that loan off as quickly as possible regardless, because interest rates are terrible on these loans.  I will update this answer if you add details about the circumstances of the current loan on your truck."
That's tricky, actually. First, as the section 1015 that you've referred to in your other question says - you take the lowest of the fair market value or the actual donor basis. Why is it important? Consider these examples: So, if the relative bought you a brand new car and you're the first title holder (i.e.: the relative paid, but the car was registered directly to you) - you can argue that the basis is the actual money paid. In essence you got a money gift that you used to purchase the car. If however the relative bought the car, took the title, and then drove it 5 miles to your house and signed the title over to you - the IRS can argue that the car basis is the FMV, which is lower because it is now a used car that you got. You're the second owner. That may be a significant difference, just by driving off the lot, the car can lose 10-15% of its value. If you got a car that's used, and the donor gives it to you - your basis is the fair market value (unless its higher than the donor's basis - in which case you get the donor's basis). You always get the lowest basis for losses (and depreciation is akin to a loss). Now consider the situation when your relative is a business owner and used the car for business. He didn't take the depreciation, but he was entitled to. IRS can argue that the fact that he didn't take is irrelevant and reduce the donor's basis by the allowable depreciation. That may bring your loss basis to below the FMV. I suggest you take it to a tax professional licensed in your state who will check all the facts and circumstances of your situation. Your relative might be slapped with a gift tax as well, if the car FMV is above certain amount (currently the exemption is $14000). I have sold cars before to individuals and always just received cash.  I would think as long as the amount is less than $10,000.00 and the buyer is serious they will get there with the cash.  Of course there is no possible way to guarantee the cash will not be counterfeit. "You can greatly reduce the risk if you can line up a buyer prior to purchasing the car.  That kind of thing is common in business, one example is drop shipping.  Also there are sales companies that specialize in these kinds of things bringing manufacturers of goods together with customers.  The sales companies never take delivery of the product, just a commission on the sales.   From this the manufacturers are served as they have gained a customer for their goods.  The buying company is served as they can make a ""better"" end product.  The two parties may have not been brought together had it not been for the sales company so on some level both are happy to pay for the service. Can you find market inequalities and profit from them?  Sure.  I missed a great opportunity recently.  I purchased a name brand shirt from a discount store for $20.  Those shirts typically sell on ebay for $80.  I should have cleaned out that store's inventory, and I bet someone else did as by the time I went back they were gone.   That kind of thing was almost risk-less because if the shirts did not sell, I could simply return them for the full purchase price.  That and I can afford to buy a few hundred dollars worth of shirts. Can you afford to float 45K CDN?  What if it takes a year to sell the car?  What if the economy goes sour and you are left ""holding the bag""?  Why are not car dealers doing exactly what you propose? Here in the US this type of thing is called ""horse trading"" and is very common.  I've both lost and made money on these kind of deals.  I would never put a significant amount of my net worth at risk." I'm a little confused by your question to be honest. It sounds like you haven't sold it to him, but you have a verbal arrangement for him to use the car like it's his. I'm going to assume that's the case for this answer. This is incredibly risky. If you've got the car on credit and he stops paying, or you guys break up... you will be liable for continuing to make payments! If the loan is in your name, it's your responsibility. Edited. The credit is yours. If he decides to stop paying, you're a little stuck. "As others have said, if the dealer accepted payment and signed over ownership of the vehicle, that's a completed transaction. While there may or may not be a ""cooling-off period"" in your local laws, those protect the purchaser, not (as far as I know) the seller. The auto dealer could have avoided this by selling for a fixed price. Instead, they chose to negotiate every sale. Having done so, it's entirely their responsibility to check that they are happy with their final agreement. Failing to do so is going to cost someone their commission on the sale, but that's not the buyer's responsibility. They certainly wouldn't let you off the hook if the final price was higher than you had previously agreed to. He who lives by the fine print shall die by the fine print. This is one of the reasons there is huge turnover in auto sales staff; few of them are really good at the job. If you want to be kind to the guy you could give him the chance to sell you something else. Or perhaps even offer him a $100 tip. But assuming the description is correct, and assuming local law doesn't say otherwise (if in any doubt, ask a lawyer!!!), I don't think you have any remaining obligation toward them On the other hand, depending on how they react to this statement, you might want to avoid their service department, just in case someone is unreasonably stupid and tries to make up the difference that was." "Unfortunately, it's not unusual enough.  If you're looking for a popular car and the dealer wants to make sure they aren't holding onto inventory without a guarantee for sale, then it's a not completely unreasonable request.  You'll want to make sure that the deposit is on credit card, not cash or check, so you can dispute if an issue arises.   Really though, most dealers don't do this, requiring a deposit, pre sale is usually one of those hardball negotiating tactics where the dealer wrangles you into a deal, even if they don't have a good deal to make.  Dealers may tell you that you can't get your deposit back, even if they don't have the car you agreed on or the deal they agreed to.  You do have a right for your deposit back if you haven't completed the transaction, but it can be difficult if they don't want to give you your money back.  The dealer doesn't ever ""not know if they have that specific vehicle in stock"".  The dealer keeps comprehensive searchable records for every vehicle, it's good for sales and it's required for tax records.  Even when they didn't use computers for all this, the entire inventory is a log book or phone call away. In my opinion, I would never exchange anything with the dealer without a car actually attached to the deal.  I'd put down a deposit on a car transfer if I were handed a VIN and verified that it had all the exact options that we agreed upon, and even then I'd be very cautious about the condition." Draft up a promissory notes.  Have a lawyer do it use one of those online contract places if you have simple needs.  Your promissory note need to cover Be specific.  There are probably a lot more items that can be included, and if a quick internet search is any indication it gets deep fast. http://lmbtfy.com/?q=car+sale+promissory+note (Like @LittleAdv says) Head to your DMV with the title and the promissory note.  The title is signed over to you and held by the DMV.  When you pay up, the seller informs the DMV and they send you the title.  If you don't pay up, the seller can legally repossess the car.  All butts are covered. Pay the note as agreed.  When you are all paid up, your friend notifies the DMV who then mail you the title. Your butt is covered because your name is on the car, you can insure it and nobody can take it from you (legally) if you are paying the note as agreed.   Your pal's butt is covered because if you stop paying half way through, he can keep whatever you have paid him and get his car back. "When I have stock at my brokerage account, the title is in street name - the brokerage's name and the quantity I own is on the books of the brokerage (insured by SIPC, etc).  The brokerage loans ""my"" shares to a short seller and is happy to facilitate trades in both directions for commissions (it's a nice trick to get other parties to hold the inventory while you reap income from the churn); by selecting the account I have I don't get to choose to not loan out the shares." Thanks for your reply. I’m not familiar with the term “Held-For-Trading Security”. My securities are generally held as collateral against my shorts. To clarify, I am just trying to track the “money in” and “money out” entries in my account for the shorts I write. The transaction is relatively straight forward, except there is a ton of information attached! In simple terms, for the ticker CSR and short contract CSRUQ8, the relevant entries look something like this: There are no entries for expiries. I need to ensure that funds are available for future margin calls and assignments. The sale side using covered calls is as involved. On the surface this sounds ridiculous, which makes me suspect that there might be something that the dealer intends to cling on to; otherwise it sounds like the dealer should be ashamed to even call your son about its own incompetence. I'd recommend politely refusing the request since said mistake didn't happen on your end, and wait to see if the dealer comes back with some sort of argument. "Strangely enough, you have a wash sale, but, for the fact that you sold the shares and then more than 30 days passed, you can take the loss.  I mistakenly used the phrase ""and ended the year with no shared of the stock"" elsewhere, and was corrected, as one can sell at a loss up to 12/31, and have until the end of January to create a wash condition.  In your case, the facts in June combined with you ending the year with no shares removes any doubt, a wash sale, but one that's fully closed out.  Note - while Vicky's answer is correct, it should go on to say that once the stock is not owned for 30 days, the wash sale loss is permitted." Ordinarily a cosigner does not appear on the car's title (thus, no ownership at all in the vehicle), but they are guaranteeing payment of the loan if the primary borrower does not make the payment. You have essentially two options: Stop making payments for him.  If he does not make them, the car will be repossessed and the default will appear on both his and your credit.  You will have a credit ding to live with, but he will to and he won't have the car. Continue to make payments if he does not, to preserve your credit, and sue him for the money you have paid.  In your suit you could request repayment of the money or have him sign over the title (ownership) to you, if you would be happy with either option.  I suspect that he will object to both, so the judge is going to have to decide if he finds your case has merit. If you go with option 1 and he picks up the payments so the car isn't repossessed, you can then still take option 2 to recover the money you have paid.  Be prepared to provide documentation to the court of the payments you have made (bank statements showing the out-go, or other form of evidence you made the payment - the finance company's statements aren't going to show who made them). Break the transactions into parts. Go to your bank or credit union and get a loan commitment. When applying for loan get the maximum amount they will let you borrow assuming that you will no longer own the first car. Take the car to a dealer and get a written estimate for selling the car. Pick one that gives you an estimate that is good for a week or ten days. You now know a data point for the trade-in value. Finally go to the dealer where you will buy the replacement car. Negotiate the price, tell them you don't need financing and you will not be trading in the car. Get all you can regarding rebates and other special incentives. Once you have a solid in writing commitment, then ask about financing and trade in. If they beat the numbers you have regarding interest rate and trade-in value accept those parts of the deal. But don't let them change anything else. If you keep the bank financing the dealer will usually give you a couple of days to get a check.  If you decide to ell the car to the first dealer do so as soon as you pick up the replacement car. If you try to start with the dealer you are buying the car from they will keep adjusting the rate, length of loan, trade-in value, and price until you have no idea if you are getting a good deal. Securities or quite a few negotiable instruments can change title of ownership without any issue. Many at times the owner ship in implicit if you are holding a certain instrument. So for example in Stock its a fractional ownership in a company, this ownership transfers to the buyer from the seller without requiring any permission from the company.   In case of say Loans, One cannot transfer the loan to some one else without the Banks permission. A Standby Letter of Credit was required by a company in UAE to import Gold Dust from a supplier in South Africa, but they do not have enough cash flow to obtain the Standby LC from their Bank. They found Bronze Wing Trading &amp; availed their required SBLC MT760 without any Financial Collateral.