Selling with Loan

[young at heart]

Here's a couple other ways I've sold things in the past to make it work.

-buyer pays for car, takes car, and Bill of sale with them along with copy of each parties drivers license
-seller takes money and pays car off, acquiring a fresh released title
-Seller provides signed off and clear title to buyer, who has been holding car as collatoral. Everyone wins.

Alternately, the buyer could wire funds directly to financial instituation with both buyer and seller meeting at bank to perform handoff of keys/title

For this to work, the buyer would have to pay for the car in certified funds before he had clear title. Possession of the car means nothing without the title in hand. The only way this might work would be if the buyer was paying unencumbered cash for the car and really, really trusted the seller. Unlikely to fly.

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[Det_Riot]

For this to work, the buyer would have to pay for the car in certified funds before he had clear title. Possession of the car means nothing without the title in hand. The only way this might work would be if the buyer was paying unencumbered cash for the car and really, really trusted the seller. Unlikely to fly.

Obviously you wouldn’t give the buyer the title until the funds clear whether it’s cash or a cashiers check that way if they do have your car and try to screw you out of the money you just report it stolen. Honestly it’s just a car that you’re getting rid of anyways so what’s the difference if they steal it and it’s a police problem for the funds clear and you sell your car. Sounds like a win-win for me

 

[young at heart]

Obviously you wouldn’t give the buyer the title until the funds clear whether it’s cash or a cashiers check that way if they do have your car and try to screw you out of the money you just report it stolen. Honestly it’s just a car that you’re getting rid of anyways so what’s the difference if they steal it and it’s a police problem for the funds clear and you sell your car. Sounds like a win-win for me

You couldn’t give him the title if you wanted to unless the lender had released it to you first. That won’t happen without certified funds going to the lender. Unless he’s independently wealthy the seller will have to get these certified funds from the buyer first. Things just don’t get transacted this way.

 

[Det_Riot]

You couldn’t give him the title if you wanted to unless the lender had released it to you first. That won’t happen without certified funds going to the lender. Unless he’s independently wealthy the seller will have to get these certified funds from the buyer first. Things just don’t get transacted this way.

I’m not quite sure what you mean with certified funds. I’ve literally sold about five cars this exact same way. I’ve done it with receiving cash, I’ve done it with a cashiers check, so I don’t understand what this independent wealthy you keep talking about is. I literally said in my first post that you would get the money from the buyer then send them on their way with the car so that you can deal with getting the title signed off and buyer can have the car as collateral.

 

[young at heart]

I’m not quite sure what you mean with certified funds. I’ve literally sold about five cars this exact same way. I’ve done it with receiving cash, I’ve done it with a cashiers check, so I don’t understand what this independent wealthy you keep talking about is. I literally said in my first post that you would get the money from the buyer then send them on their way with the car so that you can deal with getting the title signed off and buyer can have the car as collateral.

If you have had 5 people pay you cash or certified funds for a car without you simultaneously handing them clear title then you are a master salesman my friend. Again, without the clear title the car is NOT collateral. It’s absolutely worthless.

 

[Det_Riot]

If you have had 5 people pay you cash or certified funds for a car without you simultaneously handing them clear title then you are a master salesman my friend. Again, without the clear title the car is NOT collateral. It’s absolutely worthless.

Looks like I’m better than you then

 

[cerbomark]

If you have had 5 people pay you cash or certified funds for a car without you simultaneously handing them clear title then you are a master salesman my friend. Again, without the clear title the car is NOT collateral. It’s absolutely worthless.

Sold a high dollar Porsche like this. California / NY sale. After buyer agreed to price and condition etc etc he sent payoff to bank. The day he did that I sent photo of mileage and garage parked the car. Sent me the balance. Once the bank told me loan was paid and title would be sent car was picked up by transporter. There are many ways to do this depending on people involved. To be clear I have a solid reputation that can be verified with the site I sold the car on. Still, some people wouldn't t feel comfortable. Probably not common.

 

[sk47]

Sold a high dollar Porsche like this. California / NY sale. After buyer agreed to price and condition etc etc he sent payoff to bank. The day he did that I sent photo of mileage and garage parked the car. Sent me the balance. Once the bank told me loan was paid and title would be sent car was picked up by transporter. There are many ways to do this depending on people involved. To be clear I have a solid reputation that can be verified with the site I sold the car on. Still, some people wouldn't t feel comfortable. Probably not common.

Hello; A friend of mine paid for a used car before getting title and possession. I drove him to the seller's place in Wears Valley in the foothills of the Smokies. When we got to the place the car was gone. One of the family members, a young girl, was out driving it. We waited for hours. I had to get back home so had to drive him back home. I think he did eventually get the car, but do not know the details.
I have no true information but figure for every honest seller such as yourself there are multiple numbers of those who will take advantage. I also figure the reason paperwork exists for such deals has to do with a real need for proper documentation.
If I go to buy a used car at some point before we get to the actual deal, I want to see the title. If the title is clear then the seller needs to follow the instructions on the title.
If the seller does not have a title that usually means it is held at a bank or some such place. I was interested in buying a 57 Chevy from an older man a few years ago. We got to the title stage. I asked to see his title. He did not have it. He showed me the registration papers we get every year. I was convinced he owned the car but registration papers are not the same as a title. I left with the understanding he call me when he found or got a new title. He passed away not long after. I do not know what happened with the car. His wife did not contact me.

Had a fellow try to sell me a motorcycle without a title. He was willing to let me take the bike. Thing is without transfer of title the bike would not be mine. It could be taken away from me. Also he promised to get a new title and send it to me. I left it with when he got the title to let me know.

The transfer of title is how you come to own the vehicle. If you cannot pay outright and need to borrow money the person (institution) can put a lien on the title. That will show up on the title if the owner has a copy and the lender will have to release the title according to the laws to do a sale and for the buyer to get a clear title. At least this is the way I understand the ownership transfer process.

 

[analogman]

FWIW, and maybe I'm in the minority, but I personally would never buy a car unless clear, unencumbered title was available. There are just too many ways for the deal to go wrong, all of which would leave the buyer on the short end of the stick - having paid out money but not legally owning a car, with little recourse other than long, expensive, and uncertain outcome of litigation.

No matter how 'good' a deal has looked in the past, if the title wasn't clear, I've always walked away. There are too many opportunities, whether intentional or not, for the seller to end up keeping the money and the buyer not getting the title.

In this hot, supply-limited market, one might well find a desperate buyer willing to step into something like this just for the chance to buy a car. But otherwise, rather than hoping for a naive buyer, I'd just sell to a dealer and let them deal with it (even if it might be a few bucks less than a private sale).

 

[young at heart]

FWIW, and maybe I'm in the minority, but I personally would never buy a car unless clear, unencumbered title was available. There are just too many ways for the deal to go wrong, all of which would leave the buyer on the short end of the stick - having paid out money but not legally owning a car, with little recourse other than long, expensive, and uncertain outcome of litigation.

No matter how 'good' a deal has looked in the past, if the title wasn't clear, I've always walked away. There are too many opportunities, whether intentional or not, for the seller to end up keeping the money and the buyer not getting the title.

In this hot, supply-limited market, one might well find a desperate buyer willing to step into something like this just for the chance to buy a car. But otherwise, rather than hoping for a naive buyer, I'd just sell to a dealer and let them deal with it (even if it might be a few bucks less than a private sale).

You‘re never gonna get any traction in this thread if you continue trying to combine common sense with an actual working knowledge of how business is transacted.

 

[wazslow]

This also depends on what state your in. In PA there is not even a printed title until the loan is paid off. I can't just sell my car and meet at the bank and give the buyer the title. It takes a few weeks to receive the title once the loan is satisfied.

 

[p2wftl]

Here's a couple other ways I've sold things in the past to make it work.

-buyer pays for car, takes car, and Bill of sale with them along with copy of each parties drivers license
-seller takes money and pays car off, acquiring a fresh released title
-Seller provides signed off and clear title to buyer, who has been holding car as collatoral. Everyone wins.

Alternately, the buyer could wire funds directly to financial instituation with both buyer and seller meeting at bank to perform handoff of keys/title

I sold my 03 Infinity g35 this way in 2019. I owed $2k, and he paid me $10k cash. He took the car. Gave him a bill of sale, paid off the loan and a month later I received the title. He came to pick up the title.

As far as Dealers not buying cars, that's false. I just sold my 2019 Subaru wrx sti (base model) to a local Subaru dealer in February. Car was a lease through Subaru motors finance. My lease was up August this year. Negotiated with the dealer to pay $38k for my car (10500 miles). Owed $21500 on the lease, and the dealer cut me a check for $16500.

 

[Zullusman]

Selling a car with an outstanding loan can be a bit tricky, but it's totally doable. One option is to sell it to a dealership or a service like Carvana, but as you mentioned, they might not offer you the price you're looking for.

 

[LOL WUT]

This really isn’t difficult at all and happens with most auto sales. Just have the buyer send certified funds via wire transfer from their bank of choice to the one that holds the title. The bank can tell you almost immediately that the funds have arrived and your loan is paid off. At this point the bank would release the title to the buyers bank. The buyer can verify release of the title with the bank easily. If the buyer is paying cash, the title would be sent from your bank to the buyer. I’ve done this numerous times with no issues on either end.

 

[robvas]

Just have the buyer send certified funds via wire transfer from their bank of choice to the one that holds the title. The bank can tell you almost immediately that the funds have arrived and your loan is paid off.

This is a very important part.

DO NOT USE ACH

A wire is basically one and done. ACH can still be reversed. Friend of a friend sold someone a car that paid with ACH and after the money was in their account, title and car were handed over. A day or two later the ACH was reversed.

You can't do that with a wire.

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