Anyone sold a car with a lienholder?

[SnOop005]

Hello,

I'm selling my car right now but it is still financed through CapitalOne Auto Finance. The location is out of state so i can't just go to CapitalOne with the buyer and release the lien. I understand there will need to be some trust coming from the buyer, what is the best way to handle this?

 

[alm99]

I would like to know as well

 

[FoBoT]

i think the buyer has to pay the lienholder directly for the part you still owe
still googling

it might depend on the laws of the state the registration is in

http://law.enotes.com/everyday-law-encyclopedia/89867

you may need to contact capital one and ask them

Most lenders will want you to pay off the loan in full before they release the lien, which is a problem if you need the buyer's money to pay off your debt. Your problem deepens if you need extra cash on top of the buyer's payment to retire the loan.

http://moneycentral.msn.com/content/Savinganddebt/Saveonacar/P135867.asp
http://moneycentral.msn.com/content/Savinganddebt/Saveonacar/P140560.asp

If your buyer isn't willing to close the deal without physical possession of the title and/or you're dealing with an out-of-state lender, you may need to arrange a temporary loan (part of which could become more long term if the buyer's payment won't completely cover your debt).

 

[Armitage]

No offense, but the buyer is crazy if he "trusts" you - ie. pays for the vehicle without getting a clear title at time of sale.

Either do it with the lien-holder in the loop - the buyer pays off the lien directly, and then pays any difference to you. This probably needs to be done at the lien holders place of business - call them and ask how you should handle it.

Or, find a way to pay off the loan - borrow from family, etc. - and get a clear title for the sale. This will take a few weeks.

 

[cavemanmoron]

Originally posted by: Armitage
No offense, but the buyer is crazy if he "trusts" you - ie. pays for the vehicle without getting a clear title at time of sale.

Either do it with the lien-holder in the loop - the buyer pays off the lien directly, and then pays any difference to you. This probably needs to be done at the lien holders place of business - call them and ask how you should handle it.

Or, find a way to pay off the loan - borrow from family, etc. - and get a clear title for the sale. This will take a few weeks.

I would not buy another car with a lien on the title.

 

[Armitage]

Originally posted by: cavemanmoron

Originally posted by: Armitage
No offense, but the buyer is crazy if he "trusts" you - ie. pays for the vehicle without getting a clear title at time of sale.

Either do it with the lien-holder in the loop - the buyer pays off the lien directly, and then pays any difference to you. This probably needs to be done at the lien holders place of business - call them and ask how you should handle it.

Or, find a way to pay off the loan - borrow from family, etc. - and get a clear title for the sale. This will take a few weeks.

I would not buy another car with a lien on the title.

Learned the hard way, eh?

I bought a used car with the lender in the loop once. It was a local bank, so we both met at the bank, and took care of things as I described. No problem. But the bank and both parties were local.

When I sold my truck to an out of state guy, we went the second route.

 

[Reckoner]

It's a pain. The buyer has to pay off the bank, and trust you to give him/her the car. Sometimes it's just better to sell it to a dealer/carmax. You could also draft an agreement that the car is theirs once the payment is sent to the bank. That might ease their worries.

 

[Reckoner]

Another idea would be to apply for a Citibank Credit card if you don't have one already, and take advantage of their 0%, no fee balance transfer. Use one of the checks to pay the bank, get the title, and pay off the CC when you receive the cash from the buyer.