2007-11-07 10:20:34 · 2 answers · asked by laurie 2 in Cars & Transportation ➔ Buying & Selling
If you are selling or trading it to a dealer, The dealer will contact the lending institution, and get a payoff figure (the cost to pay the loan off within a specific period of time, usually 10 days). They will then pay you the difference between the purchase price and the payoff. The title is assigned to the dealer, or a power of attorney form is signed. The lender is paid by the dealer, and the dealer is given the title or lien release documents!
If it is a private sale, what would need to be done is the buyer and seller would need to meet at the bank (prior arrangements should be made with the bank to have the title of lien release available at the branch). The seller gives the bank cash or certified funds, and the release the title or lien. The seller gets whatever the difference between the payoff and purchase price!
If the payoff is more than the purchase price, the seller will have to pay the difference in cash or certified funds!
You should never give a non dealer the money for a car that still has a lien on it. You have no way to be sure that the seller will pay off the loan and get you the title. If they do not, you can lose what you paid when the bank repossesses the vehicle!
2007-11-07 10:36:24 · answer #1 · answered by fire4511 7 · 2⤊ 0⤋
Get what you owe on it and when you sell it give a bill of sale, contact the lien holder and notify the pay off is coming and they will send you a title. Once that is done, and you have it you can flip it to the buyers name. Its not that uncommon.
2007-11-07 10:26:00 · answer #2 · answered by Kimberlee 6 · 0⤊ 2⤋