How to sell a car with a loan
06-02-2013, 06:15 AM
#1
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How to sell a car with a loan
I am looking to sell a car that I still have a loan on. I owe about 4k with 0% interest rate. Is the only way to pay it off? How long will it take for the title to get to me? Any ideas? I live in Ohio if that helps. It's also not my s2000 that is being sold lol.
06-02-2013, 10:22 AM
#2
is the bank that holds the title near you? if so, the easiest thing is for the buyer to go to that bank with you to pay off the loan and get the title right then.
if the title is out of town/state it is a bitch... no one wants to pay you then wait 2-3 days or 2-3 weeks for the title... hopefully you have $4k that you can pay it off yourself once you have a buyer that way you have the title in your hand.
goodluck
if the title is out of town/state it is a bitch... no one wants to pay you then wait 2-3 days or 2-3 weeks for the title... hopefully you have $4k that you can pay it off yourself once you have a buyer that way you have the title in your hand.
goodluck
06-02-2013, 11:32 AM
#3
Things sound like they are differant here in NY, here we get the title a few weeks after 1st buying the car, the title lists the leinholder on it. When the loan is paid the leinholder will give you a letter saying the lein has been paid off.
Levi
Levi
06-02-2013, 01:21 PM
#4
How about just pay the loan off with your credit card?
06-03-2013, 03:49 AM
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I am going to probably pay the car off and just get the title. I didn't want to have to wait so long to sell it but I don't think there are too many options. Thanks for the responses, I just wanted to see if there was something I was missing.
06-03-2013, 05:54 PM
#6
It can be done, but it requires a patient and willing buyer. I recently purchased my Porsche from a private seller (out of state) and he had a lien on it. I wouldn't have done it on a cash deal, but since I was financing a portion through my credit union, I had them involved on the transaction.
My credit union cut (and held) a check to the primary lienholder, and I flew out with a check with the balance for the seller. Everything was pre-arranged and agreed between all 4 parties (buyer, seller, and both banks). Once the car passed final inspection, we executed the contracts, and my bank released the funds to the lienholder. The physical title was in document storage, and had to be retrieved by the seller's bank (took a few weeks). I was able to obtain temporary registration back home with a copy of the purchase contract and a letter from my credit union outlining the title delay issue. It took almost a month to get the title out of storage, signed by the correct parties, and into my hands.
But yeah, if you want things to go easy/smooth, pay off the loan if you have the means. Many people will run from a deal when they see complications, and liens are definitely complications. I was only willing to deal with it because I was buying a very unique car.
My credit union cut (and held) a check to the primary lienholder, and I flew out with a check with the balance for the seller. Everything was pre-arranged and agreed between all 4 parties (buyer, seller, and both banks). Once the car passed final inspection, we executed the contracts, and my bank released the funds to the lienholder. The physical title was in document storage, and had to be retrieved by the seller's bank (took a few weeks). I was able to obtain temporary registration back home with a copy of the purchase contract and a letter from my credit union outlining the title delay issue. It took almost a month to get the title out of storage, signed by the correct parties, and into my hands.
But yeah, if you want things to go easy/smooth, pay off the loan if you have the means. Many people will run from a deal when they see complications, and liens are definitely complications. I was only willing to deal with it because I was buying a very unique car.
06-03-2013, 05:55 PM
#7
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06-03-2013, 08:10 PM
#8
This isn't as complicated as you guys are making it.
From the seller's perspective:
Step 1. Go through the normal negotiating process but let the buyer know that you don't have the title in your hand.
Step 2. When it comes time to exchange money, draft a bill of sale that reflects that the buyer will pay the seller X directly plus Y to the lien holder.
Step 3. Go to the bank together (this only works if you financed through a bank with brick and mortar locations). This is important. No buyer wants to take you at your word but most people will trust your bank. Walk up to the counter and have them provide a payoff amount (they will contact corporate and then shoot out a paper with the amount on it). The buyer gives money to the bank to pay off the loan, and he gives the seller the difference. The bank will have a title transfer form for just such an occasion and they will instruct the lien holder (themselves) to make out the title to the buyer. Get your bill of sale (complete with the specific performance that you expect from each party - seller agrees to blah, blah, if not, blah, blah, refund) notarized while at the bank.
Step 4. The buyer then takes the car and all paperwork, waits about two weeks for the new title to come in the mail, and then takes the car down to get registered just like you would with any other purchase.
I have done this and it's not a big deal. As a seller, you had better put an insurance requirement in the bill of sale.
From the seller's perspective:
Step 1. Go through the normal negotiating process but let the buyer know that you don't have the title in your hand.
Step 2. When it comes time to exchange money, draft a bill of sale that reflects that the buyer will pay the seller X directly plus Y to the lien holder.
Step 3. Go to the bank together (this only works if you financed through a bank with brick and mortar locations). This is important. No buyer wants to take you at your word but most people will trust your bank. Walk up to the counter and have them provide a payoff amount (they will contact corporate and then shoot out a paper with the amount on it). The buyer gives money to the bank to pay off the loan, and he gives the seller the difference. The bank will have a title transfer form for just such an occasion and they will instruct the lien holder (themselves) to make out the title to the buyer. Get your bill of sale (complete with the specific performance that you expect from each party - seller agrees to blah, blah, if not, blah, blah, refund) notarized while at the bank.
Step 4. The buyer then takes the car and all paperwork, waits about two weeks for the new title to come in the mail, and then takes the car down to get registered just like you would with any other purchase.
I have done this and it's not a big deal. As a seller, you had better put an insurance requirement in the bill of sale.
06-05-2013, 08:08 AM
#9
Registered User
This isn't as complicated as you guys are making it.
From the seller's perspective:
Step 1. Go through the normal negotiating process but let the buyer know that you don't have the title in your hand.
Step 2. When it comes time to exchange money, draft a bill of sale that reflects that the buyer will pay the seller X directly plus Y to the lien holder.
Step 3. Go to the bank together (this only works if you financed through a bank with brick and mortar locations). This is important. No buyer wants to take you at your word but most people will trust your bank. Walk up to the counter and have them provide a payoff amount (they will contact corporate and then shoot out a paper with the amount on it). The buyer gives money to the bank to pay off the loan, and he gives the seller the difference. The bank will have a title transfer form for just such an occasion and they will instruct the lien holder (themselves) to make out the title to the buyer. Get your bill of sale (complete with the specific performance that you expect from each party - seller agrees to blah, blah, if not, blah, blah, refund) notarized while at the bank.
Step 4. The buyer then takes the car and all paperwork, waits about two weeks for the new title to come in the mail, and then takes the car down to get registered just like you would with any other purchase.
I have done this and it's not a big deal. As a seller, you had better put an insurance requirement in the bill of sale.
From the seller's perspective:
Step 1. Go through the normal negotiating process but let the buyer know that you don't have the title in your hand.
Step 2. When it comes time to exchange money, draft a bill of sale that reflects that the buyer will pay the seller X directly plus Y to the lien holder.
Step 3. Go to the bank together (this only works if you financed through a bank with brick and mortar locations). This is important. No buyer wants to take you at your word but most people will trust your bank. Walk up to the counter and have them provide a payoff amount (they will contact corporate and then shoot out a paper with the amount on it). The buyer gives money to the bank to pay off the loan, and he gives the seller the difference. The bank will have a title transfer form for just such an occasion and they will instruct the lien holder (themselves) to make out the title to the buyer. Get your bill of sale (complete with the specific performance that you expect from each party - seller agrees to blah, blah, if not, blah, blah, refund) notarized while at the bank.
Step 4. The buyer then takes the car and all paperwork, waits about two weeks for the new title to come in the mail, and then takes the car down to get registered just like you would with any other purchase.
I have done this and it's not a big deal. As a seller, you had better put an insurance requirement in the bill of sale.
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