: Need Some Car Sale Logistics Advice



kckranz
10-15-12, 11:13 AM
I have a Pontiac G6 that I am selling but still making payments on. I'd like to simplify the transaction when a buyer is identified by having title in hand. I cannot pay off the loan with cash reserves. Does anyone have any ideas on how I can pay off the loan? By this I mean has anyone used a 0% credit card offer or similar to perform a similar transaction?

Obviously the long-term credit terms are irrelevant to me since I hope to sell the car within a couple of months. Any advice appreciated.

truckinman
10-15-12, 11:22 AM
If you have a credit card with a high enough limit and 0% interest, I wouldn't see why you couldn't do that. But, what's the interest on your present auto loan? And I've never been able to understand why people think going into debt to get put of another debt makes sense. Unless this credit card you speak of truly is 0%. But credit card companies these days have such a high interest rate, I can't imagine it'd be that easy to find a 0% CC. What's your pay off on the G6?

kckranz
10-15-12, 11:32 AM
The payoff is right around $13k - same as the sale price.

I see what you mean about going into debt, but understand that I just need the "new" debt for a month or so. To me, this makes sense as to make my car more attractive by having the ability to sign over the title immediately after receiving payment from the buyer. I want the buyer to be motivated and have confidence. The alternative is to have the buyer make payment directly to my lender (if he or she is smart), wait for the lien release document and the title - things that make buyers nervous.

Also, I don't think my lender will allow a direct CC transaction to make (e.g. "charge") payoff. So, perhaps a 0% cash advance from a CC deposited in my bank account or something??

ted tcb
10-15-12, 11:49 AM
Many years ago, I sold a car that still had a lien on it with the Royal Bank.
The seller made the certified cheque out to my name & The Royal Bank, which satisfied the lien
amount, and satisfied the buyer.

truckinman
10-15-12, 11:51 AM
Anything 0% could work I suppose. But if it's ANYTHING higher than that, it wouldn't be worth it. Mainly bc you're trying to sell a car, private party none the less. It could take 2 weeks or it could take 4 months or more even. Mix that in with the fact Pontiac isn't a car that's made anymore...some people are scared of the idea of buying a brand that isn't produced anymore bc of availability of parts and what not.

IMHO, the best thing to do would be to keep paying on the initial car loan until someone buys it....use that money to pay it off...receive title and hand it over to new owner. I understand where you are coming from about how it would look having the title in hand for the new buyer. But, they also need to understand there are disadvantages to buying private party as apposed to retail (from the dealer)

talismandave
10-16-12, 01:37 AM
The payoff is right around $13k - same as the sale price.....


I see what you mean about going into debt, but understand that I just need the "new" debt for a month or so.....

The alternative is to have the buyer make payment directly to my lender (if he or she is smart), wait for the lien release document and the title - things that make buyers nervous. The possible sale price and the hoped for time period. That would be my concern. The two of those may not mesh. If you only owed 1/2 of the hoped for sale price and were willing to go lower to insure the quick sale I might think it were wise.

Really the only person who waiting to go to the bank with you to pay off car and get release would be a problem for is someone from a long distance away or someone giving you a forged money order or bad check. Every state is different but here you and the buyer go to your bank they pay you/the bank and the bank gives them a paper that they use with your title to register the car. People understand having to clear a lien, it is not so unusual strange title problem. Unless you are listing this on Ebay hoping to draw a buyer from afar I wouldn't over think it. Good luck with the sale.

Aron9000
10-16-12, 06:48 AM
The possible sale price and the hoped for time period. That would be my concern. The two of those may not mesh. If you only owed 1/2 of the hoped for sale price and were willing to go lower to insure the quick sale I might think it were wise.

Really the only person who waiting to go to the bank with you to pay off car and get release would be a problem for is someone from a long distance away or someone giving you a forged money order or bad check. Every state is different but here you and the buyer go to your bank they pay you/the bank and the bank gives them a paper that they use with your title to register the car. People understand having to clear a lien, it is not so unusual strange title problem. Unless you are listing this on Ebay hoping to draw a buyer from afar I wouldn't over think it. Good luck with the sale.


I think this is good advice provided the bank/lending institution that is holding the title has a physical branch in the seller's area. The buyer and seller go to the bank, sit down with the loan officer, exhange payment, the loan officer writes up some official, notorized document to give to the seller so he can register the car, the loan officer calls corportate and tells them to mail the title to the seller, bam done.

All of this is a bit more complicated if the bank holding the title is thousands of miles away, and it would scare me off as a potential buyer. Every car I've bought the seller had a clean title in hand. I've sold a car to a guy who had to get a loan, but it was no big deal, since we just met at his credit union and signed the title over there.

talismandave
10-16-12, 12:34 PM
Like I say everywhere is different, here If you have a lien on a title you still have the title in your possession and it just shows the lien on it. When you sell, you still just sign that over to the new owner, and the lender gives you a lien release paper that along with your title the new owner takes to the DMV. There is no waiting and the lender never actually has a title.
Side note:
If you aren't dealing with a local lender then it would be harder for sure. Some of the best advice I ever got when I was about 20 was to find a local smaller bank or credit union and get to know a loan officer there. I would buy a car that I really could just pay for out of pocket and get a loan for 12 months for it. I was getting a car about every six to nine months so the next one I would call and ask for the same guy and within about a year I had pulled and payed three loans and was at the point where I was no longer asking for a loan. I would call Jim and just give him the vin and the amount and terms I wanted and half an hour later would sign and pick up the cash. Six years later when I wanted a house Jim walked me up to the mortgage officer and introduced me as his friend and told them to take good care of me. I got into a house with half of what the normal down payment would have been and one point lower than other lenders at the time. Always a good idea to deal locally if possible!

kckranz
10-16-12, 05:09 PM
Thanks for the advice. Unfortunately, the lender is NOT local. I do not have the title - the lender does. Would it help me if the lender was willing to send me the title with the lien documented on it? I am in NC, the lender is in CA.

talismandave
10-16-12, 07:33 PM
Sucks. Sorry to hear that. Only ever done business here and every DMV is like another universe as to rules and methods!:(

ben.gators
10-16-12, 09:16 PM
I got a discover card with 0% interest rate for 15 months, and they gave me a very high credit line. Also I received a credit card offer from Bank of America, again with 0% interest rate for one year. It seems that these days banks are willing to extend credit to their customers, I hope this is a sign that the economy is healing. But talismandave made a very good point! "The possible sale price and the hoped for time period" are the real concerns. I personally never pay 13K for a G6. Do you have any idea how much people are paying for a G6 in your area? I don't mean the numbers that KBB says, I am speaking about the actual amount the buyers are paying.


Two years ago my friend and I bought a car that had a lien on it. The lender was a local credit union, so we and the seller reserved an appointment with a credit union officer, we handed the money to the officer, and the next morning we picked up the title from the credit union. It was a vey easy and smooth process.

talismandave
10-17-12, 01:09 AM
Not being familiar with that kind of process this might be from left field...but, you could call the lender and see if they have some sort of local agent to act as proxy in your area?

EChas3
10-17-12, 08:58 PM
I haven"t shopped cards recently. They used to have different rules on cash advances.