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Private auto sale with loan - How does it work?
Posted on 9/19/22 at 6:08 pm
Posted on 9/19/22 at 6:08 pm
Hoping someone can walk me through the process, located in Texas if that matters.
I've googled but not really finding good info on that specific scenario. I'm selling a car that still has an auto loan through a credit union that also isn't local to where I live.
So the person will pay me for the car, I think we need to complete a Bill of Sale that is their proof of ownership, correct?
From there, is that Bill of Sale what they need to get the car registered, plates, insurance, etc?
As soon as they pay me, i'll pay the loan off, but it takes 2 weeks for my credit union to send the title, and they'll send it to me. So obviously I'd assume I just need to then send it on over to the new owners.
I assume there's a few gaps I'm missing here, can someone fill me in?
I've googled but not really finding good info on that specific scenario. I'm selling a car that still has an auto loan through a credit union that also isn't local to where I live.
So the person will pay me for the car, I think we need to complete a Bill of Sale that is their proof of ownership, correct?
From there, is that Bill of Sale what they need to get the car registered, plates, insurance, etc?
As soon as they pay me, i'll pay the loan off, but it takes 2 weeks for my credit union to send the title, and they'll send it to me. So obviously I'd assume I just need to then send it on over to the new owners.
I assume there's a few gaps I'm missing here, can someone fill me in?
5
Posted on 9/19/22 at 6:56 pm to shel311
Done it before. Go to the bank with the buyer and bank will take care of all.
Posted on 9/19/22 at 7:04 pm to Bob Johnson
quote:I have the loan through a credit union that isn't local so that isn't an option.
Done it before. Go to the bank with the buyer and bank will take care of all.
This post was edited on 9/19/22 at 7:05 pm
Posted on 9/19/22 at 7:29 pm to shel311
There could be reciprocal credit unions to yours.
It could possibly be worth avoiding the hassle by selling to a dealer.
It could possibly be worth avoiding the hassle by selling to a dealer.
Posted on 9/19/22 at 7:38 pm to shel311
How is the buyer paying? Loan through another local institution? They should be able to communicate financial institution to financial institution.
The buyer is typically the one paying for title transfer and loan fees - that's an issue for you to discuss before meeting at his bank. If you don't know how he's paying and what he expects to pay you don't yet have an agreement.
You just have to leave the building with a cashier's check of the agreed upon amount after signing the paperwork. The agreed upon amount of course is the agreed upon price less what you still owe on the loan (assuming you have a normal loan with no weirdness like penalties for early payment - those types of fees would be on you).
The buyer is typically the one paying for title transfer and loan fees - that's an issue for you to discuss before meeting at his bank. If you don't know how he's paying and what he expects to pay you don't yet have an agreement.
You just have to leave the building with a cashier's check of the agreed upon amount after signing the paperwork. The agreed upon amount of course is the agreed upon price less what you still owe on the loan (assuming you have a normal loan with no weirdness like penalties for early payment - those types of fees would be on you).
Posted on 9/19/22 at 7:46 pm to molsusports
Just tried going through this to get a few grand more than just selling it to Carmax. 100% wasn’t worth it and I ended up just selling it and taking the hit.
Had my car on FB marketplace, auto trader, cars.com etc. The number of bogus arse offers and business dealings I got had my questioning every single email I got. I got to the point of telling someone mail the check directly to my lender and they could take delivery 10 days after once title was released.
It was an absolute shite show and would have had me questioning a Nun if she came to buy my car.
I’ve done private sales before but it was a while ago. Way before all the fraudsters popped up online. Scary stuff out there. I would only go to the buyers bank or credit union that’s financing the car and do it all there.
Had my car on FB marketplace, auto trader, cars.com etc. The number of bogus arse offers and business dealings I got had my questioning every single email I got. I got to the point of telling someone mail the check directly to my lender and they could take delivery 10 days after once title was released.
It was an absolute shite show and would have had me questioning a Nun if she came to buy my car.
I’ve done private sales before but it was a while ago. Way before all the fraudsters popped up online. Scary stuff out there. I would only go to the buyers bank or credit union that’s financing the car and do it all there.
Posted on 9/19/22 at 7:49 pm to molsusports
quote:Cash
How is the buyer paying? Loan through another local institution? They should be able to communicate financial institution to financial institution.
quote:How does this change if they're not doing a loan?
You just have to leave the building with a cashier's check of the agreed upon amount after signing the paperwork. The agreed upon amount of course is the agreed upon price less what you still owe on the loan (assuming you have a normal loan with no weirdness like penalties for early payment - those types of fees would be on you).
This post was edited on 9/19/22 at 7:49 pm
Posted on 9/19/22 at 7:51 pm to Im4datigers
quote:Yea, I got a couple of cash offers from dealers, and they're $5k ish less than I can get with a private sale but may be leaning towards like you said.
Just tried going through this to get a few grand more than just selling it to Carmax. 100% wasn’t worth it and I ended up just selling it and taking the hit.
With me having a credit union that isn't local and it seems them paying cash, I'm just not sure what the steps need to be.
Posted on 9/19/22 at 7:53 pm to shel311
I literally had people that would say they’re sending me a cashiers check and we’ll complete the sale. Once it clears they would send their shipper to pick up the car. Just nothing seemed on the up and up at all.
Posted on 9/19/22 at 7:54 pm to shel311
Call your lender and ask them how to handle it.
Posted on 9/19/22 at 7:59 pm to SG_Geaux
quote:I did a few days ago but it didn't seem helpful. I think I'll call them again and hopefully speak with someone else who may know more.
Call your lender and ask them how to handle it.
All they said last time was as soon as the car is paid off, the title is sent to me in 2 weeks, not much I could do with that.
Posted on 9/19/22 at 8:19 pm to shel311
As a buyer I would be unwilling to pay cash without leaving the transaction with a title in hand. But you can never predict what other people will or won't accept.
If they are legit buyers you still need to have signed paperwork agreeing to send him the deed as soon as the title company sends it.
Given the unusual circumstances I would have someone who knows how to write a contract for both of you to sign and notarize. Doing that at a bank so you can have security around you and make sure you are really getting legal tender or a cashier's check still seems like a good precaution to me.
Why is this buyer willing to pay so much? If you search for a similar model online are you being offered more than seems reasonable?
If they are legit buyers you still need to have signed paperwork agreeing to send him the deed as soon as the title company sends it.
Given the unusual circumstances I would have someone who knows how to write a contract for both of you to sign and notarize. Doing that at a bank so you can have security around you and make sure you are really getting legal tender or a cashier's check still seems like a good precaution to me.
Why is this buyer willing to pay so much? If you search for a similar model online are you being offered more than seems reasonable?
Posted on 9/19/22 at 8:24 pm to molsusports
quote:The buyer's offer is in line with what my car and other similar cars are selling for on multiple sites.
Why is this buyer willing to pay so much? If you search for a similar model online are you being offered more than seems reasonable?
And I got 3 separate dealership offers, all around the same as well in their range, which again, is around $5k less than the private market value.
Posted on 9/19/22 at 8:38 pm to shel311
Well it sounds plausible then. And the greater risk is on the buyer if you don't provide a clean title.
I guess there are a lot of free sales templates online. If you understand one, have a notary, and an agreement with a secure transaction then that would seem feasible.
The obvious weirdness is the extra time for you to first pay off the mortgage and send him a title. If that's written up clearly then have someone experienced in these transactions read it and then send a copy ahead of time to the buyer to read?
If the buyer understands and agrees to the transaction as you propose it? Seems like you have a potentially beneficial and legal transaction
I guess there are a lot of free sales templates online. If you understand one, have a notary, and an agreement with a secure transaction then that would seem feasible.
The obvious weirdness is the extra time for you to first pay off the mortgage and send him a title. If that's written up clearly then have someone experienced in these transactions read it and then send a copy ahead of time to the buyer to read?
If the buyer understands and agrees to the transaction as you propose it? Seems like you have a potentially beneficial and legal transaction
Posted on 9/19/22 at 8:55 pm to molsusports
Here’s one route - call around to these mobile dmv/title companies. See if they will broker the transaction and put it together for you. Y’all meet there, do the paperwork legally and they act as an escrow agent more or less. I’m sure they would do it for a small fee.
Posted on 9/19/22 at 9:19 pm to Im4datigers
quote:I've never heard of that but it does sound like it would be helpful.
Here’s one route - call around to these mobile dmv/title companies. See if they will broker the transaction and put it together for you. Y’all meet there, do the paperwork legally and they act as an escrow agent more or less. I’m sure they would do it for a small fee.
What exactly would I Google for that? Tried a few things but not finding what I probably need.
Posted on 9/19/22 at 9:25 pm to shel311
You could have them pay the bank directly. My buddy did that when he sold a car, they wired the bank $13k for payoff and gave the rest cash. Bank handled the rest on the buyers end.
Posted on 9/20/22 at 7:33 am to armsdealer
If you can pay off the car loan and make the new transaction a cash sale it’s the way to.
Let’s say you owe $10k.
New personal loan for $10k
Pay off car loan
Get title
Execute cash sale
Pay off personal loan
Let’s say you owe $10k.
New personal loan for $10k
Pay off car loan
Get title
Execute cash sale
Pay off personal loan
Posted on 9/20/22 at 10:26 am to Im4datigers
Do you have any connections at a local dealership?
You might could pay them a fee to do an in and out type of deal.
You might could pay them a fee to do an in and out type of deal.
Posted on 9/20/22 at 11:31 am to TSLG
quote:I don't unfortunately.
Do you have any connections at a local dealership?
You might could pay them a fee to do an in and out type of deal
Still at a loss here. Even the good advice like get someone you know thag can write up a contract... I don't know anyone like that so I'm still scratching my head on the best way to get this one done.
Going to meet the person out in public today for them to look at the car, but I don't think we'll be able to move forward today if we wanted, as we still have to figure this out.
I think like someone said, the bulk of the risk is on their side. They'd pay me first, if willing, the they'd have to trust me to get the title to them once I receive it.
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