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How do you sell a car that you still have a loan on?

J

Jumpem

Lifer
The dealer wants to lowball me on my trade in, so I want to try selling it myself. I am not upside-down on the car at all, as I owe maybe 2/3 of what it's worth.

So if I have a loan through a national out of town bank, what do I do? It seems like I would need the cash in hand to pay off the entire loan before I can sell the car to someone else.
 
If you still owe $10,000 on the car... post it for sale for $12,000 or whatever it is worth...

get a loan
buy out the car in full
sell for $12,000
...Profit $2000... 🙂
 
if the car is $30,000, you still ask for $30,000, use the money to pay off and you keep the rest.
 
Originally posted by: AdamSnow
If you still owe $10,000 on the car... post it for sale for $12,000 or whatever it is worth...

get a loan
buy out the car in full
sell for $12,000
...Profit $2000... 🙂
Click to expand...


So you're saying to get a personal loan, payoff the car, and then repay the loan right away?
 
Originally posted by: Pepsei
if the car is $30,000, you still ask for $30,000, use the money to pay off and you keep the rest.
Click to expand...


Problem is that therre will be a lien on the title until I pay off Mazda. So the new buyer would have to pay, and then wait a couple days for Mazda to get the money.
 
You sign a bill of sale.

Call your lender, request a 10 day payoff quote with per diem, and ask for their payoff address. The buyer sends guaranteed funds (cashiers check) to your lender along with your signed bill of sale form. Your loan is paidoff, the lender releases the collateral (car title) and mails it directly to the buyer. The buyer mails or brings it to the DMV and has it retitled with their name only.

I used to work in consumer finance including auto loans, that's how we did it.
 
Pretend to sell it to a sucker, then report it stolen. That way you already have their money, and you get to keep the car. Kickass!
 
Originally posted by: RossMAN
You sign a bill of sale.

Call your lender, request a 10 day payoff quote with per diem, and ask for their payoff address. The buyer sends guaranteed funds (cashiers check) to your lender along with your signed bill of sale form. Your loan is paidoff, the lender releases the collateral (car title) and mails it directly to the buyer. The buyer mails or brings it to the DMV and has it retitled with their name only.

I used to work in consumer finance including auto loans, that's how we did it.
Click to expand...


Thanks RossMAN!
 
Originally posted by: RossMAN
You sign a bill of sale.

Call your lender, request a 10 day payoff quote with per diem, and ask for their payoff address. The buyer sends guaranteed funds (cashiers check) to your lender along with your signed bill of sale form. Your loan is paidoff, the lender releases the collateral (car title) and mails it directly to the buyer. The buyer mails or brings it to the DMV and has it retitled with their name only.

I used to work in consumer finance including auto loans, that's how we did it.
Click to expand...

So the buyer writes two checks, one to the lender for the balance on the loan and one to you? How does the buyer know the amount you give him for the payoff is kosher?



 
Originally posted by: Squisher
So the buyer writes two checks, one to the lender for the balance on the loan and one to you? How does the buyer know the amount you give him for the payoff is kosher?
Click to expand...

Well my monthly bill does have the payoff balance on it. But yeah it does seem that the buyer has to be trusting.
 
Originally posted by: Squisher
Originally posted by: RossMAN
You sign a bill of sale.

Call your lender, request a 10 day payoff quote with per diem, and ask for their payoff address. The buyer sends guaranteed funds (cashiers check) to your lender along with your signed bill of sale form. Your loan is paidoff, the lender releases the collateral (car title) and mails it directly to the buyer. The buyer mails or brings it to the DMV and has it retitled with their name only.

I used to work in consumer finance including auto loans, that's how we did it.
Click to expand...

So the buyer writes two checks, one to the lender for the balance on the loan and one to you? How does the buyer know the amount you give him for the payoff is kosher?
Click to expand...

If the buyer has a clue they'd ask for the phone number and loan number, call and confirm the payoff balance themself.
 
Originally posted by: RossMAN
Originally posted by: Squisher
Originally posted by: RossMAN
You sign a bill of sale.

Call your lender, request a 10 day payoff quote with per diem, and ask for their payoff address. The buyer sends guaranteed funds (cashiers check) to your lender along with your signed bill of sale form. Your loan is paidoff, the lender releases the collateral (car title) and mails it directly to the buyer. The buyer mails or brings it to the DMV and has it retitled with their name only.

I used to work in consumer finance including auto loans, that's how we did it.
Click to expand...

So the buyer writes two checks, one to the lender for the balance on the loan and one to you? How does the buyer know the amount you give him for the payoff is kosher?
Click to expand...

If the buyer has a clue they'd ask for the phone number and loan number, call and confirm the payoff balance themself.
Click to expand...
I'm surprised a lender would release that info to a third party without showing a bill of sale and by that time deal would already be done.

BTW-I might try to sell My '03 Trailbazer soon for maybe $2000 over the payoff.
 
Originally posted by: Jumpem
Originally posted by: AdamSnow
If you still owe $10,000 on the car... post it for sale for $12,000 or whatever it is worth...

get a loan
buy out the car in full
sell for $12,000
...Profit $2000... 🙂
Click to expand...


So you're saying to get a personal loan, payoff the car, and then repay the loan right away?
Click to expand...

That's what I did when I sold my old car... used the money made for a down payment for my SRT... 🙂
 
Originally posted by: Squisher
Originally posted by: RossMAN
Originally posted by: Squisher
Originally posted by: RossMAN
You sign a bill of sale.

Call your lender, request a 10 day payoff quote with per diem, and ask for their payoff address. The buyer sends guaranteed funds (cashiers check) to your lender along with your signed bill of sale form. Your loan is paidoff, the lender releases the collateral (car title) and mails it directly to the buyer. The buyer mails or brings it to the DMV and has it retitled with their name only.

I used to work in consumer finance including auto loans, that's how we did it.
Click to expand...

So the buyer writes two checks, one to the lender for the balance on the loan and one to you? How does the buyer know the amount you give him for the payoff is kosher?
Click to expand...

If the buyer has a clue they'd ask for the phone number and loan number, call and confirm the payoff balance themself.
Click to expand...
I'm surprised a lender would release that info to a third party without showing a bill of sale and by that time deal would already be done.

BTW-I might try to sell My '03 Trailbazer soon for maybe $2000 over the payoff.
Click to expand...

This is done thousands of times a day, it's pretty routine in dealer auto finance. All they are releasing through the automated system is the payoff amount, that's all. Even if they go through to a live CSR usually only a few things are discussed to an outside 3rd party:

The borrowers name
The collateral (car) year, make, model and last 6 of the VIN #
10 day payoff quote with per diem
Mailing address for payoff

The car dealer doesn't even need your info actually. After they've pulled your credit report it has your lenders name and loan number on it.
 
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