How do you sell a car that you owe money on?

TerryBPP · 02-01-2006, 12:32 PM

I have always traded my cars in on other one or sold the with posseions of the title. I have a Nissan Xterra that I owe $10k on and I want to sell it to a private buyer. How do I do it?

Oh Haha · 02-01-2006, 12:43 PM

The buyer should meet you at your bank. You take the check from them and pay off the loan amount. The bank will give you a clear title. you can then sell the vehicle to the buyer. the bank location makes it pretty safe for both parties. It helps if you both use the same bank but will be fine if not. The banks all work together anyway.

dtw · 02-01-2006, 12:51 PM

Just did this a couple weeks ago. In my case there was no such thing as a bank to meet in, as my lender is USAA (all business transacted via FedEx, Web, and 800 lines). Here's how it went down:

I accepted payment from the seller and provided him with a notarized bill of sale and the vehicle. I then wired my payoff to my lender, who then overnighted me the title. I signed off the title and overnighted to the buyer. It went off without a hitch, all parties happy.

TerryBPP · 02-01-2006, 12:58 PM

Thanks. I'm using Chrylser Financial so there is no bank.

I think I finally got a game plan for my cars. Sell this sh_tbox, buy a nice 535i e34 for myself (no car payment and looow insurance), then sell the fiance's volvo and get her the X5 she wants. Of course I have to keep the evil e30.

Wow, I think I've gone bimmer nuts. Oh well.

Steve Carlton · 02-01-2006, 01:07 PM

If the buyer is paying cash, have him draw up a cashier's check (that you can verify) for the payoff amount to Chrysler Financial. Get all the instructions from them, and give your permission for them to discuss it with the buyer, so he's satisfied the title will be sent to him. Meet at a FedEx location so you can both see everything being sent to Chrysler properly. Have him pay you the balance or you toss in a cashier's check if the payoff is higher than the selling price.

If the buyer is financing it himself, his lender can handle it.

wludavid · wludavid's Garage

Quote:

Originally posted by TerryBPP
think I finally got a game plan for my cars. Sell this sh_tbox, buy a nice 535i e34 for myself

Great car. You'll probably get about the same gas mileage as your xterra though. Those M30s aren't known for being thrifty.

Rick Lee · Rick Lee's Garage

Ok, so how does this work if you trade in a car you owe on? Does the dealership handle everything for you? I'm thinking of downgrading my Mazda Tribute to something a little more fuel-efficient.

Porsche-O-Phile · Porsche-O-Phile's Garage

Be careful - a lot of times the bank will stall and drag their feet with giving you a title. They'll give you the old "it'll take 10-14 days" line. Set it up with them ahead of time and see what they can do and in any case, be up front with the buyer so they don't get pissed off when they expect a title and don't get one right away (if it comes to that).

Shaun @ Tru6 · 02-01-2006, 02:48 PM

It's insured, right? leave a spare key in the rear bumper, I'll be down to pick it up.

89911 · 02-02-2006, 04:36 AM

If your also buying a new car, the dealership (if there customer oriented) can also handle all the transfering of plates and paperwork for the sale. Usually done in good faith since your buying a car from them.

TerryBPP · 02-02-2006, 04:41 AM

Come get it Shaun!

I think I found a nice e34 at a dealership it tampa. So I might not have to deal with the bank. Well see what "deal" they can give me. Here's my situation:

I owe $11,251 on the xterra. 2002 V6 loaded. 54k miles
I highly doubt they will give that to me on trade in. Its only worth around $11k. Trade in is low $10's.

David · David's Garage

I bought a lease car from an individual a few years ago. We went to our bank to take out the loan and our bank paid off the other loan and handled the paperwork. The owner/leasee actually had some money coming back so our bank gave me a check for the difference that I gave to the owner when we picked up the car. For those of you in Texas, the bank was the San Antonio Credit Union (they have branches in other parts of Texas). Very nice to deal with and very good rates.

Steve Carlton · 02-02-2006, 05:57 AM

Quote:

Originally posted by TerryBPP
I owe $11,251 on the xterra. 2002 V6 loaded. 54k miles
I highly doubt they will give that to me on trade in. Its only worth around $11k. Trade in is low $10's.

If the market for it privately is $11k, I'd expect a trade-in allowance of around $8-9k. A dealer can give you more than it's worth (to him) for the trade by "overallowing," but that difference has to be deducted from the profit on the car he's selling you, impacting his ability to discount it.

Another thought on selling your Nissan is to pay off the $11,251 yourself before you sell it, to get the title in hand (if you have the cash, and it won't affect your down payment on the BMW). But make sure how soon you'll get the title from Chrysler, because until you do, you're not likely to be able to sell it.