I have a car loan for a 2005 car. I cannot afford the loan, want to sell the car and then purchase something MUCH less expensive. Bank informs me that I cannot sell the car w/o
1. Paying off the loan in full first. ($16,000--can't do!)
-OR-
2. Providing a prospective buyer who is willing finance.
Is there a "legal" way to take care of this situation?
2007-01-29 07:14:37 · 5 answers · asked by eb 1 in Cars & Transportation ➔ Buying & Selling
It is a simple thing to deal with. First of all, what is your car worth?
You can take the car to someplace like CarMax and have them give you an appraisal of your vehicle. This will give you a baseline wholesale price to work with. If you are trying to sell the car to a retail buyer (not a dealer) you should be able to add $1000- $1500 depending on the car to the wholesale price to get a retail value!
Call the bank, and get a payoff figure for your loan. This is what it would cost to pay the loan off today. This should be less than the total of payments owed, because you only pay interest on the loan until it is paid off!
Compare the two figures. If your payoff is less than the value of the vehicle, you are in good shape. If the payoff is more than the car is worth, you will have to pay the difference to the bank to get the lien or title released.
When you have a buyer, contact the bank, and have them send the lien release or title to a local branch. You and the buyer go to the branch, with the buyer bringing cash or certified funds for the purchase. If you owe more than the selling price, you will need to bring the difference is certified funds also.
The bank takes the money to pay off the loan. They release the title to the buyer. You sign it over to him and the deal is done!!!
If you are upfront with a buyer, there is no problem.
2007-01-29 07:55:51 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
1
2016-09-27 22:58:00 · answer #2 · answered by Kimberly 3 · 0⤊ 0⤋
You must find a buyer that has financing in place(ready to go) or has cash. You either sell the car for what you owe, and be done with it, or you sell the car for less than you owe and you pay the rest off at the sell of you car. The prospective buyer will go to the bank with you to take care of the paperwork.
2007-01-29 07:22:39 · answer #3 · answered by rex_rrracefab 6 · 0⤊ 0⤋
You can find a "prospective" buyer who will pay the bank for the loan-value of the car, and you pick up the difference.
Yes, you'd be out a couple of thousand, but it beats paying the 16-thousand in full.
Otherwise, pray your car gets stolen and make sure you have GAP insurance.
2007-01-29 07:25:33 · answer #4 · answered by rob1963man 5 · 0⤊ 1⤋
If you find buyer make sure the bank is giving you the pay off amount at that time not the full amount of the loan. Make sure you are working with the early payout numbers.
2007-02-02 04:41:03 · answer #5 · answered by Michael B 3 · 0⤊ 0⤋