question about financed car

[paulga]

this might be somewhat off topic, but is it possible to sell a civic si that is still being financed? I think it might be not as easy as if I am the owner, but if possible what are the general procedures?
I will leave my current city next summer, so I need to plan ahead. Many thanks.

 

[squiggy]

Sell the car. Pay off the loan with the proceeds. Title will be released to you once you pay off your loan. Then you can sign it over to whoever bought it from you.

 

[KennyGS]

Assuming the sale price covers your finance balance, you will be free from your financial commitment.

 

[webby]

^ and if it doesn't, you'll be responsible to pay the remaining. The person may not want to buy it though, if you can't provide the title after selling

 

[hey_mikey]

^ and if it doesn't, you'll be responsible to pay the remaining. The person may not want to buy it though, if you can't provide the title after selling

you'd have to find a buyer willing to give you cash to pay off the loan and wait for the title to come in. i doubt they'd give you cash and not want to take the car, so for a little while you'd have someone driving a car that's technically still legally owned by you.

 

[paulga]

you'd have to find a buyer willing to give you cash to pay off the loan and wait for the title to come in. i doubt they'd give you cash and not want to take the car, so for a little while you'd have someone driving a car that's technically still legally owned by you.

yes, that's the catch. I need money to payoff the loan to get the title before I can release interest of the car. this has to take 5 to 7 days or longer, depending on the processing of the bank. the buyer might not want to do this.

 

[squiggy]

yes, that's the catch. I need money to payoff the loan to get the title before I can release interest of the car. this has to take 5 to 7 days or longer, depending on the processing of the bank. the buyer might not want to do this.

This time frame is no different than buying a vehicle from a dealer. It usually takes a week to get the paperwork in order. Just draw up a written sales receipt and possibly put a statement on there spelling out acknowledgment of title transfer. It will serve as a legally binding document and show ownership regardless of the title changing hands.

 

[paulga]

This time frame is no different than buying a vehicle from a dealer. It usually takes a week to get the paperwork in order. Just draw up a written sales receipt and possibly put a statement on there spelling out acknowledgment of title transfer. It will serve as a legally binding document and show ownership regardless of the title changing hands.

can you explain more?
isn't sales receipt a part of the title document ( a stub separated from the title with a perforated line)? do you mean I take the payment, draft an acknowledgement of title transfer ( and maybe have a notary in a bank?) and hand in the key to the buyer, and hand over the title to the buyer when I receive it?
though it probably just takes one week, but can the buyer legally drive the car w/o a title? and on the sales date, how can I release interest w/o the title ( the car still belongs to the bank)?

 

[hey_mikey]

can you explain more?
isn't sales receipt a part of the title document ( a stub separated from the title with a perforated line)? do you mean I take the payment, draft an acknowledgement of title transfer ( and maybe have a notary in a bank?) and hand in the key to the buyer, and hand over the title to the buyer when I receive it?
though it probably just takes one week, but can the buyer legally drive the car w/o a title? and on the sales date, how can I release interest w/o the title ( the car still belongs to the bank)?

Look up bill of sale. There are a lot of standard forms you can find and use. It simply gives you a document that shows that both sides agreed to the deal while you wait for title

 

[hey_mikey]

And yes, in such a case you'd hand over the car and keys after you take payment. When you get the title you contact the buyer and arrange the transfer

 

[bobshur]

Sell it to carmax. They offer good prices

 

[squiggy]

Look up bill of sale. There are a lot of standard forms you can find and use. It simply gives you a document that shows that both sides agreed to the deal while you wait for title

A transaction has occurred with consideration (payment). It is legally binding regardless of the title being transferred then and there.

 

[paulga]

A transaction has occurred with consideration (payment). It is legally binding regardless of the title being transferred then and there.

thanks a lot for inputs.
another concern is though the bill of sale is legit effective, can the buyer pull back the deal after making payment before title transfer? it's possible the buyer drives the car for several days and decides he does not like it or faces a better deal, and in that case can he refuse to take over title and demand money back?

 

[squiggy]

thanks a lot for inputs.
another concern is though the bill of sale is legit effective, can the buyer pull back the deal after making payment before title transfer? it's possible the buyer drives the car for several days and decides he does not like it or faces a better deal, and in that case can he refuse to take over title and demand money back?

Not unless it is a stipulation written into the bill of sale. You could actually write on it that the sale is final and no refunds.

 

[paulga]

thanks so much. I searched for bill of sale template but it looks really complex. I don't know what template applies to financed car sale. so what should be included in the outline of the draft?

 

[squiggy]

You don't need to use a bill of sale. You can simply do a hand written receipt. Put the date, amount, VIN, miles on car, sellers name, buyers name, and any terms you want spelled out specifically.

"Sale is final and as is"
"no return/refund"
"title will be mailed/transferred, etc, upon receipt from the bank"

Make sure both of you sign and date acknowledging the terms of/and the sale.

When I sold on of my motorcycles, I actually had the buyer go to the bank with me and witness me pay the loan off with the payment they gave me.

 

[paulga]

You don't need to use a bill of sale. You can simply do a hand written receipt. Put the date, amount, VIN, miles on car, sellers name, buyers name, and any terms you want spelled out specifically.

"Sale is final and as is"
"no return/refund"
"title will be mailed/transferred, etc, upon receipt from the bank"

Make sure both of you sign and date acknowledging the terms of/and the sale.

When I sold on of my motorcycles, I actually had the buyer go to the bank with me and witness me pay the loan off with the payment they gave me.

thanks for the information. If just in case the buyer is pulled over or even worse, involved in a car theft or sabotage or other kind of damages for which he may or may not be responsible, what will the police say? in the worse case, the scheduled transfer of title is not going to happen. will the buyer recognize the loss? bear me with going to extremes.

 

[squiggy]

The buyer should keep the receipt/bill of sale drawn up with them as documentation of proof of ownership. You cannot be held liable. As far as title transfer, if you fail to hold up your end, you can be sued. The car is still theirs though.

 

[paulga]

The buyer should keep the receipt/bill of sale drawn up with them as documentation of proof of ownership. You cannot be held liable. As far as title transfer, if you fail to hold up your end, you can be sued. The car is still theirs though.

I'm clear now. thanks for your answer.

 

[squiggy]

No problem. Always glad to help where I can.