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Selling a Car with a Loan

This topic contains 23 replies, has 0 voices, and was last updated by  Bainc 3 years, 7 months ago.

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  • #177015

    DivotMaker
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    It’s been a long time since we’ve sold a car with a loan still on it, so I’m in need of some advice. The last time we had a loan, it was with Golden1 so we just went to the branch and they took care of everything. But this time, the loan is with Ford so we have to do everything differently. Trying to figure out the best way to do it so both buyer/seller are protected and liability is minimized. Here’s what I was thinking, but please tell me if there’s a better way.

    Meet buyer at Golden1 and have buyer bring funds.
    Get a cashier’s check payable to Ford and overnight payment
    Sign Bill of Sale and Release of Liability
    Ford will mail me the pink slip
    I sign pink slip over to buyer

    Seems like a lot of trust is required by both parties for this to work out. Thanks.

  • #291897

    Bainc
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    Can you pay it off with other funds to get the pink slip? As a buyer I’m offering a discounted price due to risks and therefore you might make out better in the long run with pink slip in hand.

  • #291890

    newmom
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    You can also try offering some kind of collateral until you turn over the pink slip if the buyer seems concerned about it.

  • #291878

    DivotMaker
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    Yeah, we can pay it off, but Ford just told me up to 6 weeks to get the pink slip. Thinking we’d be in limbo land if we paid it off today then had a buyer come tomorrow. Not even sure we could sell it in that situation?

    Was just reading about escrow.com based on another person in the same situation. Apparently an escrow service can be used, but need to call them to see how that works with a vehicle.

  • #291894

    Anonymous
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    Use a third party escrow system, like a house. Takes liability off the buyer and seller

  • #291885

    LC
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    Why not just pay off the note and sell it then? I have no idea how your situation would be best solved. The last car we sold with a note was my daughters, and we sold it to a dealer at the Sierra College thing, that was super easy and he paid up too. I think that’s a good venue for peddling MVs.

    Have you called FoMo Credit? They may have an office locally that can take the payoff?

  • #291881

    EGL Admin
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    We are trying to sell our Lexus. It’s paid off, but it cracks me up that people offer way under what we are asking and say they have cash. As if that’s a benefit? It’s going to be cash or a bank check either way, so there is no incentive for me to sell at a discount for cash. We have it listed for $7500. I get emails offering $5000 cash. One guy I emailed back and said why would I take $5000? What’s the incentive?

    Back to the topic. I don’t know what is best. I don’t think we have ever sold a car that was not paid off. If it takes 6 weeks for the pink slip, then you are kind of in limbo.

    Has anyone tried CarMax? Yew wife suggested taking the Lexus there. That’s like doing a trade in and I don’t think will be anywhere near as good as private party value.

  • #291893

    norules
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    I’ll give you $5001 cash. Ha ha. I guess some people still take personal checks on these type of transactions?

  • #291886

    LC
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    Doc, the Sierra College auto consignment deal is really good, and likely you’ll come out better there than Craigslist. I’ve only used it once, but we easily sold the car for 95% of asking in two days. Yours should sell quickly, any used Lexus under $10K has got to be something of value to a buyer with budget.

  • #291879

    DivotMaker
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    Called on the escrow thing and it didn’t really make sense for my situation. It’s more for people who buy cars on eBay or similar sites. They send the money there and release it upon delivery/inspection of the car.

    Doc, tell me about the crazies online offering less!!! Or saying “I have cash” like that’s supposed to make me excited.

    Carmax was a complete fail for us in the past. It was for a Beamer, so maybe they didn’t want it, but if memory serves, they were even lower than dealer trade in.

  • #291898

    Bainc
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    Most people don’t have $7,500 sitting around. A cash offer is better then somebody saying I’m going to get a loan at the credit union then we can complete the transaction. Cash is king (includes cashiers check).

  • #291895

    gearshark23
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    I’ve taken 3 cars to CarMax. But never sold to them, 1) It’s not close to private party, nor trade in value. I took my 2013 Accord there. They offered me 15k, I walked out and just traded it in at Ford for more money. They claim that it has to go through all the inspections yada yada. I’ve usually traded in all my cars, and get trade in value, (Roseville Honda). I’ve sold a couple private party, but they didn’t have loans on them.

  • #291882

    EGL Admin
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    @bainc 123485 wrote:

    Most people don’t have $7,500 sitting around. A cash offer is better then somebody saying I’m going to get a loan at the credit union then we can complete the transaction. Cash is king (includes cashiers check).

    That’s nuts. Either way I’m getting cash. If they have to get a loan, that’s cash to me. Serious buyers already have a loan set up. I’m not taking $1000 less to get cash.

  • #291899

    Bainc
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    The last vehicle we purchased we paid $6,900 cash when private party KBB was $10,000. Vehicles are only worth what someone is willing to pay and trying to get a loan on a private party sell is a hassle.

  • #291887

    LC
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    Will a bank or credit union finance a car with that many miles? My experience is until you get to around the $15K level you’re often dealing with some pretty marginal people. You can try to wholesale it. Roseville in the old downtown has a ton of small dealers who are in the credit business more than the car business, they might surprise you. That’s who bought my daughter’s car. Over the years I’ve wholesaled a few cars and done a lot better than I expected. If they want it, they will pay up. If they don’t have a specific target buying group in mind they won’t pay much. I have to think yours is pretty desirable. If it was an old Ford or something you’d be better off donating it and taking the tax deduction.

  • #291900

    Bainc
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    @lc 123493 wrote:

    My experience is until you get to around the $15K level you’re often dealing with some pretty marginal people.

    I think you just called me marginal. :stir:

  • #291888

    LC
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    Keyword “often.” Are you marginal, dude? :biggrin:

  • #291891

    Scarlet
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    Divot – ask Ford if there is a way they can rush the pink slip. I did it years ago, filled out forms online and I had it in 1 to 2 weeks. I know I didn’t wait 6 weeks.

  • #291880

    DivotMaker
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    @scarlet 123497 wrote:

    Divot – ask Ford if there is a way they can rush the pink slip. I did it years ago, filled out forms online and I had it in 1 to 2 weeks. I know I didn’t wait 6 weeks.

    Hey Scarlet, yeah that was one of the questions I asked. She said “allow up to 6 weeks, based on your state’s motor vehicle department.”

  • #291892

    Scarlet
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    oh you know what, I had inside connections – I think that’s why I received so quickly from dmv

  • #291883

    EGL Admin
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    The craigslist people crack me up. They email and immediately want you to call them or give them your number. I like to weed them out and email a couple of times and gauge their seriousness before doing that. Had one today. Emails and asks if the car is available. I reply back yes. He replies back give me a call. I reply back, when do you want to come take a look at it and then I tell him the price of $7500 is firm. Never heard back. I don’t need an asshat coming out and offering me $6000 or less. A couple of days ago a guy emailed and we went back and forth and said he wanted to come see the car yesterday. I said okay what time. He said around 11 am. Yesterday I emailed and asked if 11 am was okay of what time he wanted to come out. Never heard back Over the weekend there was another guy who emailed he had to buy a car and really wanted a Lexus. He only had $6000. I said sorry that’s not enough. Then he wanted to come out and see it anyway. I said no I’m not selling it for that so I don’t want to waste anyone’s time. Then he said $6500 that’s as high as he could go. I said thanks but that’s not good enough. Then he said maybe he could get a loan and go higher. I said that’s fine. he said he wanted to come see it. Gave him my number and we texted. So Sunday he was going to come out around 1 pm. I texted him a little after that and asked if he was coming out. He said he was busy. Then he texted back asking if he could come see it and I said no I was through wasting time. In 4 weeks we have had one person actually follow through and come out. I have probably exchanged emails with 20 people. Half want to offer under $6000, and the rest seem interested but don’t pull the trigger. Idiots.

  • #291896

    gearshark23
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    I give you props for dealing with Craigslist people….

    I couldn’t do it….

  • #291889

    LC
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    Take it out to Sierra College this weekend.

  • #291901

    Bainc
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    List it for $9K and you’ll get a $7,500 offer.

  • #291884

    EGL Admin
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    @bainc 123650 wrote:

    List it for $9K and you’ll get a $7,500 offer.

    That’s probably true.

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