Advice needed - how does one sell a car being used as collateral on a loan?

[moparedtn]

Please, guys.... just advice on the question, ok? This is hard enough....
Maybe one of you banker/financial whiz types can help me with the
fundamentals of such a transaction?

 

[GetX'd]

I hope this finds you well Ed. I’m not sure that one can sell a car that’s already being used as collateral. It seems like it has a lien on it in that case. I would think you have to release it from the loan obligation. Frankly I don’t know that a fellow would buy a car that was in that position. I respect your wishes and will only offer my opinion on such a transaction. God Bless and stay well.....

 

[Richard Cranium]

Like any car loan, I assume that the lender holds the title and as such would continue to hold it until the loan is paid off.

 

[Durandal25]

Fairly easily. The bank gets paid off first, it releases the lean ....and you transfer title to new owner with the release

 

[Richard Cranium]

Fairly easily. The bank gets paid off first, it releases the lean ....and you transfer title to new owner with the release

Of course the bank would receive the check and after it clears, the title will get sent to the seller or whoever the seller says to send it to. The car would have to be extra special for me to want to buy a classic Mopar under those conditions.

 

[moparedtn]

To clarify a bit, the car is collateral on a personal loan that has about 6 months left on it, taken out after all the medical bills from the cancers about 5+ years ago.

The bank tells me the actual title is in their main office about 2 hours away and they can fetch it overnight at my say if a payoff is imminent, so that it could conceivably be transferred to the new car owner right there in the bank lobby....
but like RC says, what potential buyer would actually agree to such a thing?
Does that sort of thing happen often?

Oh, and it's just my GTX. Nobody is gonna say she's "special" except for me.

 

[Roger63]

To clarify a bit, the car is collateral on a personal loan that has about 6 months left on it, taken out after all the medical bills from the cancers about 5+ years ago.

The bank tells me the actual title is in their main office about 2 hours away and they can fetch it overnight at my say if a payoff is imminent, so that it could conceivably be transferred to the new car owner right there in the bank lobby....
but like RC says, what potential buyer would actually agree to such a thing?
Does that sort of thing happen often?

Oh, and it's just my GTX. Nobody is gonna say she's "special" except for me.

I'm sure it does, I have purchased more than one that way.

 

[davek]

Yes I would buy it if I got everything in writing. And yes you GTX is special.

 

[gkent]

If I was buying a car with a lien on it I would write the check out to the lien holder for the amount owed and the balance to the seller. I'm surprised the bank holds the title but that's America I guess. Up here we keep the title but the lien is registered and that is disclosed along with accident history in "sellers package" that must accompany each sale. This may vary by province. The only time a buyer needn't worry about a lien is if purchased from a dealer. In this case the dealer is responsible for any liens or encumberances that may be on a vehicle. Its also not uncommon for a loan to be paid off but the bank hasn't cancelled the lien.

 

[davek]

It can be a pain,Bought my step sons car to help him and then he tells us there is a lien on it. Got to love family. Hope it all works out for you.

 

[khryslerkid]

Should be another Stimulus check coming next month!

 

[Roger63]

If I was buying a car with a lien on it I would write the check out to the lien holder for the amount owed and the balance to the seller. I'm surprised the bank holds the title but that's America I guess. Up here we keep the title but the lien is registered and that is disclosed along with accident history in "sellers package" that must accompany each sale. This may vary by province. The only time a buyer needn't worry about a lien is if purchased from a dealer. In this case the dealer is responsible for any liens or encumberances that may be on a vehicle. Its also not uncommon for a loan to be paid off but the bank hasn't cancelled the lien.

It depends on what state the car is titled in. Some hold the title some don't.

 

[moparedtn]

Yes I would buy it if I got everything in writing. And yes you GTX is special.

Well yes, she's indescribably special to me, I just meant to anyone else.
Thank you for saying that, though.

 

[Slap Stick]

I would think to sell the car the bank would call the loan.
After all it is what is securing the loan.

 

[Ironbuilt]

I agree with @Stanton pay the bank only what is owed on the loan. Agree on a price with the seller, pay the remainder of the lien, then you, as the seller receives the remaining funds. I would have no problem purchasing a vehicle under lien, as long as the seller was up front from the beginning. Good luck to you Ed.

 

[YY1]

Happens all the time when people sell newer cars they still owe money on.

 

[Fran Blacker]

My wife bought a car that the person was making payments on. The seller and my wife went to the bank paid the seller signed title over and got rest of the agreed amount. No sweat.
To bad your letting the GTX go. They may do another supplemental unemployment bill but it won't be an extra $600 a week.

 

[Bb70charger500]

So I just did this with my super bee guy had a loan on it I payed directly to the bank but it was in tx and it took a month for the title to be released do I had car shipped with bill of sale first title came later but they wouldn't release it to me they sent it to him then he sent it !
Kinda hard that way but if you can go down and do it in lobby they would need cash to realise it that soon but it's not very hard to do !

 

[moparedtn]

My wife a car that the person was making payments on. The seller and my wife went to the bank paid the seller signed title over and got rest of the agreed amount. No sweat.
To bad your letting the GTX go. They may do another supplemental unemployment bill but it won't be an extra $600 a week.

After literally hundreds of applications, thousands of emails and calls, etc. I'm just now starting to get nibbles.
This areas' contractors all went into circle the wagons mode, most have sent guys home....
It's been really bad and every time I try to get something, hell anything, other than my line of work, all I'm told is
"you're over-qualified".
Like hell I am. Never done it, how could I be?
The folks at the state employment bureau tell me they got folks been looking for over a year.
Despite what you see in the news, it ain't all good out there, especially in this neck of the woods.

Anyways, at least now things are just beginning to stir - just in the last few days - and just in time for the latest
news from doctor world (don't want to talk about that one right now).
It just seems like there's one choice left - and I'd have already checked out if not for Faith and my wife.
God's honest truth.
Yes, it'll absolutely destroy me to let the GTX go - but it's down to "have to" time pretty much.
Next week or two will tell for sure.
Thanks for listening, y'all.

 

[coronet68mx]

Damm it