Itemization of loan proceeds Purchase transaction

I believe this is a basic early lending question, but we are doing things different then what I thought we are doing. Customer is purchasing a car from an individual who has a lien on the car. Does all the loan proceeds to go to the seller, or seller and bank with the lien to pay off loan?

Not sure what that question has to do with a TILA disclosure.

If you're taking the vehicle's title as collateral, you darn-well better be the one who pays off the previous lender! Otherwise, you've made an unsecured loan.