How do you sell a car that you still owe on/don't hold the title for?

Question

1 year later and I'm beginning to have buyers remorse...
Say I owe 15000 on my car and I know I can only sell it for 13000. How do you do this since the finance co. is who actually holds the title? Do I need to get the 13 from the buyer and then come up with the difference to pay off the bank? How do I actually get the real title and transfer it to a new owner if I don't technically "own" the vehicle yet?

I assume I cant sell it and continue to make payments on the difference I owe...right?

Answer 1

Your assumption is correct. Once the car is free and clear, you'll have the title.

Answer 2

You may not be able to sell it at all , unless the finance company allows the contract to be transferred , then the buyer will have to work with the finance company you will not get the title until the loan is paid in full , just like most finance companies have small print on their contracts such as non transferable , and they also make it against the contract terms to change anything such as audio, rims etc.. The only thing you can do is ,13000 from buyer , you come up with 2000 , plus other fees (if any) for them to release the title , once you pay it off , they will process the release of lien and mail you the title within about two or three weeks , when dealing with banks/finance companies along with the state motor vehicles division ..Nothing is automatic , it will take a while for them to get you the title.....not long ,but not quick either

Answer 3

Ok -- as soon as you drive a car of the lot it depreciates in value as you have learned. Usually the street value is less than the amount on the note. Selling it outright means you have to add money to the amount you sell it for to pay off the note.
Your assumption is correct the bank will not transfer ownership to a new buyer until the loan is paid in full.
You're only option (to avoid being out of pocket) is the trade the car in on a new car and let the dealership worry about it. But be sure to negotiate the best deal possible because it will cost you to back out of the first loan in one way or another.

Answer 4

I just bought a pickup from a guy who still owed Chrysler Financial $8800. What a mess. According to all the notaries and salesmen I know, there is no official or legal document to protect you if the seller takes your money and runs. You have to trust the seller. I made him sign a paper that said I paid him $8800 to pay off his truck and that I would pay him the rest when he got the title back from the bank and we transferred it to my name. People warned me that it might not stand up in court, but it was the only way I could protect myself. I gave him a certified check made payable directly to the bank. I mailed it myself by certified mail to the bank to be sure he couldn't take the money and run. Then we waited for the title to be mailed to him. Here's where the trust comes in: I just paid off his truck and now he still has the title, free and clear. He could now sell the truck to someone else and I'd be tied up in court for years trying to get my money, if ever. But fortunately, I knew his family well enough that I trusted they would never let him pull a fast one on me. Three weeks later, he got the title and I gave him the rest of the money in the presence of the notary at the title transfer. I paid all the sales tax (dont forget about those) and I got my pink slip and my truck. What an ordeal. I wouldn't want to do it again, and I was lucky that I sort of knew the guy to start with.

Answer 5

first you an the one going to buy the car got to talk to the bank, now they be wantting all their money , a fact, you need to go to them with the buter, an if the buyer want to take up the note,on what left, the bank will run a check, on that person, the rewrite the note,,, in most cases you walk out oweing nothing, but i say the money you selling the car for the bank will get,

Answer 6

I think you either have to come up with all the money and sell it or trade it in for a new vehical and they will add the "Red" ( owed ) money onto a new loan..I was there 4 years ago..If you buy a new vehical they add intrest on that, so you'll pay more..If you sell it , get as much as you can and make up the difference..It stinks eh ? You HAVE to clear the title by purchasing /paying it off or refinacing it..

Good luck..

Answer 7

You legally cannot 'sell' a car without a title.
If you are dealing with a dealer it's easier, if not it's a major pain in the ***. You are responsible for the remainder of the balance to release the title from the bank. Depending on the car, if you keep it, perhaps another year, you won't be upside down. Most cars take the initial hit for depreciation in the first year, so it might be cheaper to keep her for another year.

Answer 8

You can sell it as "Take Over Payments" if you can get that much for it. Wax it up and make it shine like a new nickel inside and out. IF you can't get that much for it then you would either have to keep it or make up the difference out of your pocket.