I am selling my car which has outstanding finance on it. Obviously nobody wants to buy a car which has outstanding finance on it, but I can't pay the finance off until I sell the car. Is there anyway around this? How have people dealt with this in the past? I know its not a unique case. Please help.
2007-02-22 22:56:06 · 7 answers · asked by Nelson 2 in Cars & Transportation ➔ Buying & Selling
You cannot sell a car that has outstanding finance on it as it belongs to the finance company and they may well consider reporting you for theft. You could ask a dealer to buy it as they would settle the finance as part of the deal. Or if you have paid at least 2/3 of the loan off you could just give it back to the finance company.
2007-02-22 23:02:37 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The seller tells the finance company he intends to sell the car. The finance company tells the seller how much he needs to pay off the car and release the title to him. The buyer gets a certified check for that amount, made out to the finance company not the seller, and sends that check by certified mail directly to the finance company to pay off the truck. The finance company sends the title back to the seller, in the seller's name, since the title has not been transferred to the buyer yet. When the seller gets the title in about three weeks, he informs the buyer. They go to a notary public. The buyer pays the rest of the money (if the sale price is higher than the payoff price) to the seller at the time of the title transfer. The buyer pays the sales taxes. The buyer has a car, the seller has his money. The only catch is this: You better trust the seller. Once the finance company releases the title to the seller, it's his vehicle, free and clear, and there's really nothing to prevent him from selling the car to someone else or keeping it, unless you have a bill of sale, describing exactly how the transaction will take place, typed up, signed by both parties and notarized ahead of time. I've been told that this may not stand up in court if the seller decides to keep the car. Now you have a lawsuit on your hands which will take time to settle. Trust the seller or find another car. If the buyer is financing the car, the two finance companies may work out the title transfer.
2007-02-23 00:45:49 · answer #2 · answered by MICHAEL S 2 · 0⤊ 0⤋
Agree with Nomad.
The buyer can settle the outstanding finance direct with the finance Co.
Ensure this is OK with your finance company in advance and get them to advise on payment method (cash over the counter / bankers draft etc..)
Never part with your vehicle until the finance company has confirmed receipt of payment.
2007-02-22 23:40:00 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Utter tosh, the buyer if a private person cannot settle your finance.
Contact your finance company and they may give you a letter allowing you to sell. As it stands you cannot advertise when there is finance owing.
You could take someone elses advice and sell it to a trader who will settle the finance if its less than what he will give you for the car.
2007-02-23 00:14:24 · answer #4 · answered by Mark B 5 · 0⤊ 0⤋
Remeber that you need to inform the finance company that you intend to sell the car.
You may be able to get the remainder of the finance secured against your house instead of the car.
2007-02-22 23:05:05 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Mark B talks rubbish. Finance companies will take anyones cash to pay off the loan. Will be ok as long as you tell them
2007-02-24 08:27:23 · answer #6 · answered by weeebell 1 · 0⤊ 0⤋
easy. just get the buyer to pay the finance co what they are owed with a cheque and you get the balance
2007-02-22 23:01:25 · answer #7 · answered by Anonymous · 2⤊ 1⤋