How do you privately sell a vehicle if you owe money still

Discussion in 'Off Topic' started by lokiju, Jun 13, 2008.

  1. lokiju

    lokiju Lifer

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    I've never done something like this before.

    I've always just traded in my previous vehicle's and bought from dealers up until now.

    Here's the situation.

    I bought a motorcycle back in 2005, I currently owe $6,400 for it and see that the average asking price is anywhere from $6,300 to $7,000 for the same model, year, condition, etc...

    I want to sell it privately so that I can maximize how much I get for it so I can fully pay it off.

    I spoke with the company that holds the loan and title (GEMoney) and they said that after they receive the full amount owed that it will take a full billing cycle before they issue the title.

    Is it normal in a private vehicle sale situation to have the buyer expect to wait at least 30 days to receive the title after paying in full for the vehicle and taking possession of it?

    Is it legal to sell someone a vehicle and allow for them to take possession but not provide them with rights to the title at the same time?

    Help me ATOT, you're my only hope!

    :beer:

    Cliffs:
    -Owe $6,400 on motorcycle and should be able to get that if I sell it privately.
    -Have a loan still on the amount owed and do no have possession of the title
    -How does a private sale work in this situation?
     
  2. Raizinman

    Raizinman Platinum Member

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    Nobody is going to purchase a car or motorcycle without a title. There is too much chance that the vehicle is stolen or you don't have permission to sell it. I've seen too many deals go sour where a person would sell a vehicle and then the title had a spouses or someone elses name on the title. The seller already had the money, and he left town. NEVER purchase a vehicle without the seller having the title. I always want to see the title prior to sell. Many times there will be mileage issues or other liens on it that were not disclosed.

    In your situation, here is what I would recommend: Have the bank or loan company photocopy the title for you. This way you can show the perspective buyer the title. Be upright and honest to the buyer and tell him that if he is interested in buying, that he would meet you at the loan office where the title is, and do the transfer right there. If your loan company is out of town, well, get a loan from your folks for friend. Even with doing that, you would probably still end up waiting 3 to 4 weeks or more to receive the title. They don't tend to hurry.
     
  3. lokiju

    lokiju Lifer

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    This is what I was afraid of.

    But I completely understand it, if I were in the buyers shoes, I'd go buy from someone else who had possession of the title on hand.

    I might just pay it off with a credit card and then sell it.
     
  4. geno

    geno Lifer

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    I've purchased a car which was not paid off, and also sold it, again, not paid off. Have the seller contact the bank and they can send a form which allows you to transfer the title without having to send it to the seller. The lender acts as a neutral third-party and, once payment is received in full, the title will be sent to you as the buyer.
     
  5. bucwylde23

    bucwylde23 Diamond Member

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    I sold my old car (~$19k) while I still owed money to the bank.

    What I did was I met up with the buyer and talked it over. He loved the car and really wanted it.
    He got a loan with the check written to me and my bank. I sent in the payment but kept the car. He did not take possession of the car until I had received the title. This was somewhere around 2-3 weeks.
    He was very trusting and patient and I'm sure most buyers wouldn't be the same.

    In this case it worked out well for me.
     
  6. thomsbrain

    thomsbrain Lifer

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    The flexibility to sell at any time was one reason I paid off my 60 month loan in 14 months. As others have mentioned, it is possible to do this, but it would take a very trusting buyer. If I was the buyer, I'd just look for another example of the model without a lien.
     
  7. ViviTheMage

    ViviTheMage Lifer

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    get a premiere line loan or something, pay it off, get the title, transfer it to the new owner when you have it sold...DONE.
     
  8. sactoking

    sactoking Diamond Member

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    Use a Bill of Sale. The Bill of Sale is your proof that the vehicle was sold if the buyer never changes the title/registration. They get in an accident and you provide the bill of sale and you don't have liability any more. That same works in reverse. If you buy, get a bill of sale that explicitly states ownership is transferring pending release of the title by the lender. If you want more protection, get your signatures on the bill of sale notarized.
     
  9. Beattie

    Beattie Golden Member

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    This is probably the easiest way.
     
  10. arkcom

    arkcom Golden Member

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    Somebody had to get a loan for $19?
     
  11. waffleironhead

    waffleironhead Diamond Member

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    Contact the lender and get a payout amount document from them. It basically shows waht you still owe on the loan. Some will show amounts xx days out, so if you end up selling in a week or a month, the buyer will know how much is on the loan. They then take this doc to their lender and the lenders communicate and work their magic. Their lender will cut 2 checks, one to your bank and one to you.
    Just be upfront with the buyer about the condition of the title. If they walk away they are too stupid to buy the bike to begin with. Plus as mentioned, use a bill of sale.
     
  12. alkemyst

    alkemyst No Lifer

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    wow I don't get this thread...other than than waffleironehead's post. Call the bank that holds the title and go from there. People above are buying beaters.
     
  13. bucwylde23

    bucwylde23 Diamond Member

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    Ah, a typo. $19,000.


    How expensive are your cars? The car I sold was $19,000. That's not a beater to me.
     
  14. aesthetics

    aesthetics Golden Member

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    I totally see a "Shit I'm going to prison for..." post in your future.
     
  15. Pacfanweb

    Pacfanweb Lifer

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    What I've always done in this case is this:

    Call my local banker. Have them send for the title from wherever they keep it.

    Make deal on car.

    The buyer and I go to the bank, buyer gets title on the spot, and I get any excess after the loan is paid off.