How should I sell a car if it still has a lien on it?
#1
How should I sell a car if it still has a lien on it?
Hello gentlemen,
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!
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!
#2
Registered User
you can use craigslist or whatever you want.
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.
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.
#3
Thanks for your quick response! I should have made this clear, I will not be underwater. The car is worth ~17k and I have about ~12k to pay off. It just seems as though there is a ton of trust involved, and personally if I were a buyer I wouldn't trust any seller with my 17k. Are there forms that would aid in establishing some kind of guarantee for the buyer of my car? To my understanding a Bill of Sale is only for personal use.
#4
Registered User
Thanks for your quick response! I should have made this clear, I will not be underwater. The car is worth ~17k and I have about ~12k to pay off. It just seems as though there is a ton of trust involved, and personally if I were a buyer I wouldn't trust any seller with my 17k. Are there forms that would aid in establishing some kind of guarantee for the buyer of my car? To my understanding a Bill of Sale is only for personal use.
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.
Good luck.
#5
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Join Date: Mar 2010
Location: Apex, NC
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When I bought my car from a person with a loan on it I had them come with me to my bank branch to get the cashiers check so they could see it physically issued and know it was legit. I then met them at their bank that had the title and paid the bank with the check, then the bank cut the owner their portion of the check.
#6
When I bought my car from a person with a loan on it I had them come with me to my bank branch to get the cashiers check so they could see it physically issued and know it was legit. I then met them at their bank that had the title and paid the bank with the check, then the bank cut the owner their portion of the check.
#7
Registered User
Thanks for your quick response! I should have made this clear, I will not be underwater. The car is worth ~17k and I have about ~12k to pay off. It just seems as though there is a ton of trust involved, and personally if I were a buyer I wouldn't trust any seller with my 17k. Are there forms that would aid in establishing some kind of guarantee for the buyer of my car? To my understanding a Bill of Sale is only for personal use.
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