[Rupes]

Subject line says it all - want to sell private party, but won't have the title until after I receive the money from the transaction. Title is held by a small regional bank I don't have access to. How difficult is this?

[gk09]

Originally Posted by Rupes

Subject line says it all - want to sell private party, but won't have the title until after I receive the money from the transaction. Title is held by a small regional bank I don't have access to. How difficult is this?

Have the buyer meet you at a bank mutually agreed upon and after the funds have been cashed the bank will be able to issue you and the new owner a letter that will state the vehicle has been paid in full and depending on where you live, the lien release letter will be sent out in a few business days.

[Rupes]

Originally Posted by gk09

Have the buyer meet you at a bank mutually agreed upon and after the funds have been cashed the bank will be able to issue you and the new owner a letter that will state the vehicle has been paid in full and depending on where you live, the lien release letter will be sent out in a few business days.

Thanks very much - sounds pretty easy...does the new owner leave with the car that day, or has to wait for the lien release letter?

[chmura]

Originally Posted by Rupes

Thanks very much - sounds pretty easy...does the new owner leave with the car that day, or has to wait for the lien release letter?

If funds are transferred owner gets the car right away.

[Rupes]

Originally Posted by chmura

If funds are transferred owner gets the car right away.

Thanks everyone - awesome feedback. Two last questions. If a regional bank holds the title today (and is not near to my house), do I need them to transfer the title or do something in preparation for the sale? I anticipate selling the car for less than the current balance and will need to cover the difference.

Finally, can the new owner secure a loan for the car given the information above, or do they have to pay cash?

[chmura]

Originally Posted by Rupes

Thanks everyone - awesome feedback. Two last questions. If a regional bank holds the title today (and is not near to my house), do I need them to transfer the title or do something in preparation for the sale? I anticipate selling the car for less than the current balance and will need to cover the difference.

Finally, can the new owner secure a loan for the car given the information above, or do they have to pay cash?

I sold a car that was financed. I never saw the title. The bank owns the car not you. So the bank will transfer and send the title to the new owner.

Yes new owner can finance a used car. Usually banks go to kbb.com and will not loan you more than the kbb valve on the car.

[TemjinX2]

if the buyer is financing...probably easier just have his banker contact your banker and have them arrange all the details and just have both parties meet at your bank to do the final paper work signing.

thats how my buddy sold his last few cars.

yes you will need to cover the difference if the sales price is below what you owe.

[LVI]

Originally Posted by chmura

I sold a car that was financed. I never saw the title. The bank owns the car not you. So the bank will transfer and send the title to the new owner.

Yes new owner can finance a used car. Usually banks go to kbb.com and will not loan you more than the kbb valve on the car.

Wrong. The bank does not own the car, they are the lienholder. There is a difference. Go look at your registration and see whose name is listed under "Registered Owner". If you stop paying for the car, they have to go through a process in order for them to become the owner.

In CA, you (the seller/registered owner) will need to sign the title over, or sign a notarized power of attorney giving the buyer rights to transfer and register the vehicle. In most cases, you will absolutely need to get the actual title in order to register the car, even if the lienholder somehow sends the buyer the title directly.

Most people will not want to deal with this, especially if they are not local, but if you do find a buyer that is willing to jump through hoops, it typically works like this.

1. He pays the balance in full to the lienholder (your bank that holds the loan). You will get any remaining difference between payoff and what he is buying the car for, or you will pay the difference between what he is buying the car for and what you owe (if you owe more than what you're selling the car for).
2. Buyer takes the car home.
3. Most titles now are electronic, meaning the bank does not actually have a physical title. Upon payoff, they will order the title and mail the buyer a lean release.
4. DMV will process their title order and mail the physical paper title to the REGISTERED OWNER - which is still you, the seller at this point.
5. You sign the title over to the buyer and mail him or give him the title.
6. Buyer takes title and lien release to his DMV and registers the car.

If he is financing the car, then it's even more complicated, unless he is financing with the same bank.

As you can see, there is a certain level of trust that needs to be there for someone to hand over tens of thousands of dollars without a title, and most people will not be willing to do it, unless it's a sweet deal.