For those that were selling your car while still owing money on it, what did you have to do to get the new owner the title? What procedures were involved with the lien holder and DMV?




[Modified by typeRP, 2:09 PM 5/15/2002]

 

when kelly and i bought our bEEst (see my avatar), the car had a collateral loan on it. Basically, a bank 0wnz (j00) the car. We paid the previous 0wnzer and she t00k da cash to the bank. The bank then gave her the title and she mailed it to kelly. Now killy's got an appointment on friday to transfer the title to him (temporarily).

yshi - who will transfer the 0wnzership to himself when killy gets his new kaa

 

Most car loans I've seen are on the collateral system. Basically the bank who you are financing with holds the title for you until you pay the car off.

If you were selling your car, this is what you need to do:
1. Find out how much you owe.
2. Get the buyer to pay you
3. You pay off what you owe and you will recieve the title from your bank
4. You must transfer that title to the buyer

The buyer must transfer that title to the bank of finance if they borrowed money from the bank to buy the car.

 

So Kelly didn't get the title right away? What makes you think the lady won't screw you guys by not mailing the title to Kelly?

 

(-1%)

And the buyer is on their own once you transfer the title. They have to register the car in their name and also buy insurance. In most states, an emissions paper and proof of insurance is needed to register the car and get a tag.

 

reminds me of the guys who bought my old Integra. they were supposed to come and pick up the title but could never find the time even though they lived about twenty mins away. Afer holding on to the title for about two months I went to give it to them at their work place. the new buyer hardly drove the car because he worked long hours and didn't have time to learn how drive a manual transmission. the few times he drove it, he went around with no plates/insurance etc. lucky for him he was never stopped by the cops.

there is some risk in that the seller won't hand over the title after you give him the money to pay off the car to get the title from the bank. however there is enough paperwork involved in the transaction that if someone pulled a stunt like that, you would be able to get him in court.


[Modified by jmb, 7:09 PM 5/15/2002]

 

I know she won't screw us, b/c kelly received it last saturday

yshi - who had the lady make up a contract/receipt and have her sign it

 

Depends on whether the buyer wants to buy the car outright or assume the payments. It also depends on the loan contract. If the buyer wants to buy the car, you're supposed to pay off the debt on the car, get the lien removed from the title, then transfer the title. If the buyer wants to take over the payments, either he has to take out a loan for the amount owed or transfer the debt to his name (subject to loan contract conditions and credit approval). If you do transfer a title with a lien on it, the lien holder is supposed to supply a letter of transfer, which the new owner brings with him while registering at the DMV.

 

Very interested to see how this is going to work


Pat, who did something dumb tonight (not 009) related, but won't share until later

 

What if I'm paying cash for this car? What sort of paper work will be involved? I can't think of any because the seller don't have the pink slip to sign off the car or a bill of sale. I guess the only paper work is what Yoshi was talking about. Make up a sales contract and have the seller sign it. The problem in this case is the seller still owes money on it and he's in a different state, if I want to fly there and drive the car back, I will have to wait when I'm there for the bank to release the title to him and god knows how long that will take. Because I don't know about driving the car back without some sort of proof or documentation saying the seller has release interest/liability of the car.


[Modified by typeRP, 6:41 PM 5/15/2002]

 

Randy - I downloaded a generic private vehicle sale agreement from my credit union. Looks pretty thorough. I'll email you a copy tomorrow.