How should I sell a car if it still has a lien on it?
Posted 15 April 2011 - 12:19 PM
I apologize if this question is elementary, it's my first time selling a car privately that is financed. I have researched the topic and called the bank that has the title of the car (multiple times) but I keep getting different answers.
So my question is, legally, what is the safest and most efficient way of selling a car privately that is financed and still has a lien on it?
***Paying the car off and then selling it is NOT an option. Thanks in advance!
Posted 15 April 2011 - 12:30 PM
If you are underwater it probably isn't possible and you will need to pay the loan off when you sell it.
I would talk to your lender to find out the best way. They may have forms for you to use.
The basic idea is get the cashiers check from the buyer and pay off your loan with it and your bank will send the title to the new owner or new owners lien holder.
There have been some cashier check scams in the past. Be wary of shipping the car anywhere until you have waited the 7 days (i think it is 7) for the check to clear.
Posted 15 April 2011 - 12:37 PM
Posted 15 April 2011 - 12:47 PM
yeah, bill of sales are sort of useful if it went to court after a problem, but that's about it.
Talk to you lender. They may have forms and advice to help.
I always finance mine through a local credit union so they have always been helpful.
Posted 15 April 2011 - 12:55 PM
Posted 15 April 2011 - 02:31 PM
That's what I was thinking. It's how I've done it in the past.
Posted 15 April 2011 - 03:38 PM
If you're selling for $17k, have the buyer give you a check for $5k, and have him also make a check for $12k payable to the bank with instructions to send the pink to him.