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Anyone ever sold a vehicle with an existing loan?
Posted on 7/17/15 at 1:02 pm
Posted on 7/17/15 at 1:02 pm
I get a pretty good monthly allowance from company for a vehicle, but there are minimum perimeters to follow.
Having said that, typically we sell our cars every 2-3 years. I traded my last one in, but would like to try to make that extra $2-3k+ with a private sale. But the vehicle will have an existing loan.
Anyone ever done this? Is it a nightmare? Should I use something like Escrow.com or maybe even go directly to the bank that owns the loan?
Having said that, typically we sell our cars every 2-3 years. I traded my last one in, but would like to try to make that extra $2-3k+ with a private sale. But the vehicle will have an existing loan.
Anyone ever done this? Is it a nightmare? Should I use something like Escrow.com or maybe even go directly to the bank that owns the loan?
2
Posted on 7/17/15 at 1:47 pm to okietiger
Shouldn't be an issue as long as the seller knows ahead of time. Just have a few logistical things to get in order. Your lender should be able to provide you with some info on their requirements for releasing the title.
Posted on 7/17/15 at 2:11 pm to okietiger
How does the sales tax work in your state? In La. say you are buying a car for 45k and trading in one for 25k then you pay tax on the difference on the sale, 20k. This is almost a 2k savings just in tax. The optimal way to do a private sale is you can get a dealer to do a pass thru for you to the new buyer so you only pay tax on the difference, same as if you were trading it in. If you do this the dealer will often handle all the payoff footwork also. If you are plain out selling it then the buyer will get a bill of sale and get the title sent to them once the car is paid off. If they are financing,the banks will work it out. That's what they do.
Posted on 7/17/15 at 3:32 pm to achenator
quote:
The optimal way to do a private sale is you can get a dealer to do a pass thru for you to the new buyer so you only pay tax on the difference
Good advice. A lot of people overlook this when selling privately.
Posted on 7/17/15 at 4:13 pm to achenator
No clue any rules about that in Oklahoma but I'll look into it.
Eta: Can this be done after the fact? Using your example, if I sell current vehicle A for $25k, am I able to do the pass thru through the dealer for purchasing vehicle B for $45k at a later date in order to only face taxes on the $20k? I need to call my state tax department.
Eta: Can this be done after the fact? Using your example, if I sell current vehicle A for $25k, am I able to do the pass thru through the dealer for purchasing vehicle B for $45k at a later date in order to only face taxes on the $20k? I need to call my state tax department.
This post was edited on 7/17/15 at 4:17 pm
Posted on 7/17/15 at 4:27 pm to okietiger
Usually not. At least not in la. You are technically trading it in and the buyer is buying it from the dealer. It's usually done all at once with both parties present. I did this at BH BMW one time and I think they charged me 400 ish maybe
Posted on 7/17/15 at 5:52 pm to achenator
Interesting. I'll look into it.
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