How Do You Sell Your Car as a Private Seller?

[cheez]

Hi guyz,

I have a car that I have trouble keeping up with the payment. I will end up owing even more money if I sell it to a dealership or any independent dealer. I want to sell my car private so I won't have to lose as much money. How do you sell a car as a private seller? What forms do I and the buyer need to fill out? And what form of payment should I accept? I live in Indiana. Can you explain to me in easy simple way as I'm a newb?

Thank you dears,

cheez

 

[repoman0]

It's going to be a massive pain in the ass given that you're still making payments and therefore don't have title in hand. Most buyers won't want to deal with that unless the car is rare or special in some way.

It's easy if you have the title .. quick informal bill of sale (even handwritten) and take cash or bank check.

 

[monkeydelmagico]

It's going to be a massive pain in the ass given that you're still making payments and therefore don't have title in hand. Most buyers won't want to deal with that unless the car is rare or special in some way.

It's easy if you have the title .. quick informal bill of sale (even handwritten) and take cash or bank check.

Meh it really isn't all that difficult, especially if the lien is held by a bank with a local branch. Seller posts vehicle for sale and everyone meets at the bank. Buyer satisfies lien and gets title. If the title is held by corporate entity a bill of sale will usually suffice for temporary registration purposes.

 

[AdamK47]

The last car I sold I had posted it for sale on a forum dedicated to that car model. I had a pending offer the very same day I posted it. They buyer was able to secure a loan with his credit union for the car and get a check made out for it. He flew from Florida to pick the car up. We met at a local bank where he had the check and I had the title. I was able to deposit the money in the bank and get the title notarized at the same time. He drove the car to Florida right after that.

 

[Paladin3]

How will it work if the OP owns more on the car than he will make in the sale? Say he owes $30k on the car and sells it for $25k. I don't believe the bank will allow the car to be transferred to the new owner with $5k still owning on the original loan. Without the car for the collateral they have no way to secure the remainder owed by the OP.

The OP would have to pay off the entire loan, find some way to transfer the balance of the loan into an unsecured loan of some type, or come up with sufficient collateral to secure the final portion. OP needs to call the bank.

 

[highland145]

Yeah, you can bet they won't give up the title until it's paid in full.

 

[JulesMaximus]

Meh it really isn't all that difficult, especially if the lien is held by a bank with a local branch. Seller posts vehicle for sale and everyone meets at the bank. Buyer satisfies lien and gets title. If the title is held by corporate entity a bill of sale will usually suffice for temporary registration purposes.

This. I would also go to your state DMV website and see what forms you need to file to get the registration out of your name. Have those in hand and fill them out when the buyer and you pay off the balance of your loan (you will need to cover the difference, if there is any, between what the buyer is paying you and what you owe the bank).

 

[deadlyapp]

If there is a significant amount remaining on the loan, your best bet is to just try to find someone who will take over the loan for you. If you check with whomever financed it for you they can let you know how to do that.

 

[crashtech]

How will it work if the OP owns more on the car than he will make in the sale? Say he owes $30k on the car and sells it for $25k. I don't believe the bank will allow the car to be transferred to the new owner with $5k still owning on the original loan. Without the car for the collateral they have no way to secure the remainder owed by the OP.

The OP would have to pay off the entire loan, find some way to transfer the balance of the loan into an unsecured loan of some type, or come up with sufficient collateral to secure the final portion. OP needs to call the bank.

This is right, basically the buyer pays the lienholder, and the seller pays the lienholder, too. Ouch.

 

[skull]

How will it work if the OP owns more on the car than he will make in the sale? Say he owes $30k on the car and sells it for $25k. I don't believe the bank will allow the car to be transferred to the new owner with $5k still owning on the original loan. Without the car for the collateral they have no way to secure the remainder owed by the OP.

The OP would have to pay off the entire loan, find some way to transfer the balance of the loan into an unsecured loan of some type, or come up with sufficient collateral to secure the final portion. OP needs to call the bank.

They really need to teach this stuff in school even though its common sense.

OP is under water if he gives it back to a dealership, hes hoping private party will cover the loan. This is all pretty simple but will be a pain in the ass if the buyer is securing a loan also.

I've always paid cash for paid for cars, its too easy that way. Give cash get notarized title done and done.

 

[AdamK47]

They really need to teach this stuff in school even though its common sense.

OP is under water if he gives it back to a dealership, hes hoping private party will cover the loan. This is all pretty simple but will be a pain in the ass if the buyer is securing a loan also.

I've always paid cash for paid for cars, its too easy that way. Give cash get notarized title done and done.

And you write on the title that you paid $1 for it.

 

[skull]

And you write on the title that you paid $1 for it.

No you gotta make it reasonable goof ball.

 

[Red Squirrel]

This is why I would never buy a car new, they are way too expensive compared to their used counterparts... but thanks to those who buy new so that there can continue to be a used market.

I would just bring it in to the dealership and try to get as much as you can out of it, and a used car. Maybe it can somehow be done all in one deal. No matter what you'll be at a loss though as the car is worth less than what you owe on it the minute you drove it off the lot.