OK, I am looking to sell my 04 GT Vert, but I still owe a balance on it. The trade in offered by the dealer will not leave me paid off, so I'd like to sell private if I can. If I owe, say, 22 on it....and I can sell it privately for 20, how do I do that? I would need that 20 to use to pay off the 22......but no one is going to say "Here is my 20K, I'll pick up the car in 2 weeks when you pay off the car and get the title."

I am sure its been done before....just not by me.

Thanks in advance.

This 05 is driving me crazy, that I'll take a nice hit financially just to get the dang thing!!!

 

You are 'underwater' in your loan. In other words, you owe more than it is worth. You can trade it to the dealer, and they can roll the negative amount over into the new loan, but I don't recommend that. If you want to sell it outright, you will have to come up with $2K, by borrowing off your family, or getting a signature loan for a short period of time, then paying off the loan in full, before the title is released. The main problem I see, is that someone has to trust you enough to give you $20K so you can pay off the loan. Not an easy thing to do.

Good luck.

 

I do not know, but if you do not have a lot of extra money, you are very foolish to sell a year old vehicle. Doublely so if you are underwater on the loan.

You should still have a title. Why do you not have a title?

 

He won't have the title until he pays it off. The bank will have it.

 

If you have really good credit, you can go to your bank or credit union and get a "Signature Loan". Basically a loan based on your good credit and may need to be backed up with some form of collateral (not the car you are trying to pay off though, since you don't own it). They will give you a check for $20K (or whatever you need to pay off the car loan), and set up a repayment schedule. Then, once you get the title and sell the car, you can pay back the loan with the other guys money (make sure there are no early termination fees).

 

Well, I sold my old ride before it was paid-off. Here is how we did it. I sold it for more than I owed but still the same thing. You tell the buyer, you will pay-off the car A.S.A.P., after you get his 20k. You have to add 2k and fedex the 22k off to the bank. The buyer get the car now, plus a sales receipt. Now, he has the car but legally can't drive it! You'll get the title back in about 7-10 business days. I took a certified bank check as payment. The guy who bought mine, was more than happy enough to wait the 7-10 days for the title. Deal done without any problems. And now, I have my new 05 Musang GT :-)

Dave...

 

Depends on the state, talk to your DMV. In most places a proper bill of sale is binding (and therefore the seller does not have to wait to drive the car). If I am selling a car that I owe money on, I go with the buyer to my credit union and do the paperwork real-time. I would not expect a buyer to give you $20k and then wait for you to cough up the other $2k. You will have to wait until you have the $2k ready before doing the deal.

 

Yeah but with a sales receipt can't you just give him the car keys and let him drive it until the title comes in, then finish the paperwork?

I'm going to be in the same boat too, but I won't be selling my car until the new one comes in. I owe about 6k left on my accord with 80k miles and it's worth 10k

 

What did the dealer offer you?

If you're only upside-down 2k after trading it in then you can trade it to the dealer for 20k and write them a post-dated check or workout a plan that will allow you to pay the 2k over a period of time. You could also work out a personal loan with the bank and/or use a credit card for the balance. I had the dealer roll it over but I wouldn't necessarily recommend that either (of course it depends on how much money we're talking) but I just didn't want to deal with the hassle. Just some thoughts..

 

egarding your questions about selling to a private party when you have a existing loan on the vehicle.

Is your loan through a local bank or credit union, or an out-of-town lender?

If a local lender, visit their offices to find out how to pay-off/settle the loan in a private party sale.

If an out-of-town lender, call their customer assistance 1-800 number for instructions on how to sell to a private party.

If your private party buyer is going to finance, their lender will know how to handle the pay-off.

Regarding transfer of title - the bill of sale will suffice as proof of legal ownership in most states. If your lender is local, they probably have the title and can release it in a day or two. If your lender is out-of-town, it may take a little longer.


One word of warning - in some states, like Alabama, you could be held legally responsibile for any accidents the new owner gets into before the title transfer occurs. If I sell for cash, I ALWAYS take the new buyer to the county clerk (DMV) and file the transfer paperwork before I hand over the keys. If the buyer is getting a loan, the lender will make sure the buyer has insurance in force before they approve the loan

Hope this helps.

John

 

Don't you get a title with a lien notation on it?

 

After talking with a family member. Here in Michigan, we still receive a title with the loan institution as a secured party. They have to sign off a sale. The buyer writes provides a check to them and any extra monies goes to seller.

I have never had a car payment. Only a few leases and I know I had titles for them.