I was approved for a loan through Capital One and everything seemed to be going fine until the seller of the car, which I purchases out of state called and told me that he has problems with capital one because the title of the car is an "open title". He has around a dozen cars for sale and they are all old muscle cars...he says the titles are clean but are "open" He told me Capital One wont allow him to cash or deposit the check unless they see the care is registered to him. So he suggested I try a different lender that allows the car to be sold with the "open title". Any feedback on this will help me much for Im new to this and dont fully understand why If I was approved for the loan and want to sign over the check to him...why should Capital One care what I buy or whom I'm buying it from.

Thanks in advance.

The "open title" means the guy took the car without ever transferring/registering the title in the car dealers name like legit sellers would do. Because of this, you are asking Capital One to issue a payment to a person that is not the registered owner of the vehicle. It would also look like Capital One is aiding this person in circumventing the car dealer laws if they participated in this. There could also be problems with the title like liens, mileage statements and other information because the original owner is removed from your transaction.

Most states have laws to prevent regular people from reselling a large quantity of cars without having a dealers license. This is to protect buyers because dealers would have to obey laws as well as have responsibility to make sure taxes are collected properly.