NEED ADVICE SELLING MY ZL1 VERT STILL HAVE LOAN

[z28-conv]

I have a interested buyer for my car. They live out of state.What complicates the selling of the car is I still have a loan with it. I checked with my bank that holds the title for the car. I asked what is the best way to complete a transaction to sell the car that protects me and the buyer? I think the buyer is ok with the price I want. But of course if he wants the car he needs to send the money so I can pay off the loan before the bank gives me the release letter so that I can title the car. If I didn't still owe on the car I wouldn't be selling it. The most recent question they asked is how much do I owe on the loan still? Should I give them that information? I am thinking the obvious reason was so they could send me the balance for the loan. Than they could pay the balance I want for the car in cash when they come and get the car. This needs to be a mutual trust between both parties I just don't want there to be any issues? What do you guys suggest? Is there anything I should do to protect myself. If the buyer wants to send me the money what is the best way to do that? Lots of questions but just need advice Thanks for all help

[Inferno13]

I just sold a motorcycle with the same situation, and have bought and sold other vehicles similarly.

I generally insist on a sales contract with all of the details. Buying price, where the lien is held, balance on the lien, selling price etc. I have both parties sign and notarize the document.

There may be other ideas from other members as well that perhaps are more bulletproof. I have been fortunate, I only do business with people I have a good feeling about.

I also stay in front of any worry and provide notification to the buyer when I send the check to the bank for payoff, when I receive the title, and when I forward it to them by mail.

GLWTS

[JB'sZL1]

The monies could be placed in a trust until cleared (this protects you as well as the buyer), then the payoff is made and a clear title sent (obviously the lienholder has to first submit a full release).

[z28-conv]

Thanks Guys. One more question for all. Should the buyer be patient for their check to get to the seller ( Snail mail) and the seller go through the necessary process to satisfy the lien holder and draw the necessary paperwork ( Release letter) to create a title? Are there other safe options for the buyer to send funds. If I was to supply the buyer with an Account number can the buyer just go to a branch in their state ( which I know there are many) and deposit the money into that account that way? Sounds kinda risky? IDK That is why I am asking? Thanks

[JB'sZL1]

Out of state funds usually creates a 10 day hold with most banks. Cash is king. Paypal is certain, but there is a 3% fee.

[Redlineviper]

This is incredibly common. Ultimately lender he/she is using or if they are a cash buyer will get a power of attorney letter. The letter stipulates that instead of releasing to title to you after the lein is released it goes to the buyer.
If there is a bank involved they will send funds to your bank for the payoff and to you for the difference. If it's a cash buyer same way.

[z28-conv]

Originally Posted by Redlineviper

This is incredibly common. Ultimately lender he/she is using or if they are a cash buyer will get a power of attorney letter. The letter stipulates that instead of releasing to title to you after the lein is released it goes to the buyer.
If there is a bank involved they will send funds to your bank for the payoff and to you for the difference. If it's a cash buyer same way.

There is a bank. The buyer could go to the lien holder( Bank) and pay balance to satisfy loan. Then pay the difference to the seller in cash? But buyer still needs the title to insure car right? Or will they just need the car serial number?

[Redlineviper]

Originally Posted by z28-conv

There is a bank. The buyer could go to the lien holder( Bank) and pay balance to satisfy loan. Then pay the difference to the seller in cash? But buyer still needs the title to insure car right? Or will they just need the car serial number?

They will need the VIN (vehicle identification number) and the check can come straight from their bank to your bank. Their bank would send you a document giving them power of attorney on your behalf to transfer ownership. Their bank should have this document on hand and fax or email to you. You may need to get it notarized. Then they send the difference in payoff to you.

They can insure the car immediately. Heck, I can get insurance to drive anyone's car, you don't have to provide proof of ownership. They would need to get a temporary tag until your bank releases the title (many banks have a 10 day hold).

[silversleeper]

I was going to buy a car from a lady last year who said there was still a balance owed at the bank and I should pay it off, then it would take her bank some 10 days to get the title to her and she wanted to keep the car during that period also.
No way. She didn't seem especially smart and possibly sketchy. Having dealt with sketchy people in the past I try to avoid it. Once you pay off their car, they are free to keep it, or resell it with the title going to someone else. At that point you are only left to file in civil court to try to get your money back from a loser.
If I must do something like that I prefer to go through my bank with a loan so they work with the other party's bank and this doesn't happen. Then I can pay off my small loan and get the clear title.
The car I did buy (not my camaro) from a small dealer, I paid them cash so they could pay off the loan and gave them power of attorney to do the out of state registration and title work. I wouldn't do that again. One of the parties left the country and they took months and many calls to complete the dmv requirements. Also they lied about some inspections etc having been done already that actually weren't so I had to do them at my inconvenience and cost. This was also complicated that the local dmv wouldn't accept the missing inspection paperwork I had, it must go back to the seller with the whole "package" to be turned in by the seller.

[STUNNAH]

Originally Posted by Redlineviper

They will need the VIN (vehicle identification number) and the check can come straight from their bank to your bank. Their bank would send you a document giving them power of attorney on your behalf to transfer ownership. Their bank should have this document on hand and fax or email to you. You may need to get it notarized. Then they send the difference in payoff to you.

They can insure the car immediately. Heck, I can get insurance to drive anyone's car, you don't have to provide proof of ownership. They would need to get a temporary tag until your bank releases the title (many banks have a 10 day hold).

Outside of a cash sale this is the simplest way to make the transaction and both parties are protected...Set up the sale with your bank, both parties sign a "Bill of Sale" on payment your account is paid in full and any other money is paid directly to you...You cancel your insurance on the vehicle and your done...

[Coop[580]

Originally Posted by STUNNAH

Outside of a cash sale this is the simplest way to make the transaction and both parties are protected...Set up the sale with your bank, both parties sign a "Bill of Sale" on payment your account is paid in full and any other money is paid directly to you...You cancel your insurance on the vehicle and your done...

Exactly..... Have his bank contact yours and let them send the purchase price to yours and your bank cuts you a check for anything extra...

[z28-conv]

Thanks to all for the info. the potential buyer and I will continue to discuss how to continue this transaction. it would certainly be easiest and quicker If we can have the two banks to do all of the work

[silversleeper]

Originally Posted by z28-conv

Thanks to all for the info. the potential buyer and I will continue to discuss how to continue this transaction. it would certainly be easiest and quicker If we can have the two banks to do all of the work

I wouldn't say it's the easiest, but it's the safest way except for a handover of a signed title with the car paid in full cash.
If you work with the buyers bank because he is getting a loan that works out good also if you had no loan. You take them the signed title and you sign some papers get a solid bank check and your done.
The banks are usually less helpful in your case for him to walk in and release the title to him.
They take their time to get it from the title department and get the lien release signed off, and then they will only send the title to you, the seller. This leaves no protection to the buyer as the paid off title is now in your hands. Turns into a quagmire if you are not honest. Likewise if you accepted a check from the buyer.
For some reason when they work bank to bank, or bank to dealer, they are willing to transfer ownership without depending on the buyer or seller after the initial paperwork signing.
https://www.edmunds.com/sell-car/how...-car-sale.html
This article gives some helpful tips but as I said, the bank with the lien unfortunately isn't always helpful in having that signed title ready to go the moment you step in and pay off the loan, nor will they promise to send the buyer a signed over title. This is why so many ads say "clear title in hand". It's my first question now in buying a car and if the answer is no, I walk. You might want to get an unsecured loan to pay off your car to attract more buyers, unless they don't have the money either and are working through their bank.