I financed a new car in October of 2022 and the bank holds the title (secured loan). I understand that it would be easy to trade to a dealer when getting another car from them but dealers typically low ball you big time. My question is, should I ever decide to sell it privately by posting on a forum or listing on cars.com (or whatever other way) how are private party sales transactions handled when the bank holds the title? I ask because the last time I sold a car was over 20 years ago and I had the title in hand and it was fairly easy as I handed over the title with a bill of sale after we went to my bank and they confirmed the bank check that the buyer provided was deposided successfully. Thanks in advance.
Short version: Buy out the car and don’t sell it until you get clear title. Thats the only way I do it.
If you want to do it another way, safest solution is to use an intermediary service, but this will not be free. If you are asking a buyer to front you money so you can pay off your loan, well you may find it hard to get a good offer, but if you do, normally they would want to take possession of the vehicle upon payment and then expect to receive the title within an agreed upon time.
I sold many cars privately. I tell the buyer to send funds directly to my bank who’s holding the title. Easiest way
Most times they are financing themselves so banks just figure it out themselves
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Interesting. What happens if the sale price is way more than the payoff? The bank just forwards them the title and sends me the difference? Banks are accustomed to doing this?
Oh.
I just have the buyer give me the difference. Usually, most banks require a down payment if it is a private deal.
Down payment? Can you please clarify?
Carvana and Vroom will purchase vehicles with liens. I’d consider that route as well. Much easier than a retail deal unless it’s something super desirable.
If you are selling a car with a lien with $30,000 but your selling for 40,000. Tell buyer to give you $10,000 to you and rest to your bank.
Their offers are close to private sale offers?
It really depends what you have, I’d recommend getting quotes from them, then you’ll know.
What is the car you are trying to sell? I’ve sold dozens of cars privately, but I don’t find it worth it anymore unless it is a specialty car of some variety. The more mainstream the car, the more hassle it seems.
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Nothing special. Its a Chevy Bolt and im not teying to sell it as of now just wanted info for the future. Ill get some quotes from the companies mentioned above and see how they compare. Thanks for the advice guys.
Why would anyone buy a vehicle from a stranger who does not have title to the vehicle in question?