How does it typically work if you sell a vehicle that isn't paid off yet? Do you sell it, pay it off with the money from the sell and then send the new owner the title when you get it or is there some other method??

 

Everytime I have sold an unpaid vehicle....I always have the buyer go to the bank with me to pay the loan off, and then they take his info and mail him or his lender the title when it gets processed. That way it's in the banks hand and I'm not the one on the chopping block if it takes forever to get the title.

I'm sure there are other ways, but I've found this to be the easiest for me atleast.


~Nick

 

Someone getting a new truck???????????

 

Sounds good in theory, but doesn't work so well if it's an out of state bank.

 

You could use one of those on-line escrow companies, I've not had any first hand experience with them though.

 

Something like that. I'm getting a company vehicle and I don't really want to continue making payments on a truck that sits in the driveway all the time. So, we're considering selling it and possibly getting something bigger and nicer for my wife.

 

You could trade both the wifes and your truck in on the new vehicle

 

My suggestion would be to go to your credit union and take out a signature loan for the amount of payoff for the vehicle.

Pay off the vehicle.

When you sell the vehicle, take that money and payoff the signature loan.

 

I could, but I'd get more money for mine if I sold it myself. Hers is paid off.

 

Around here you can just sign a release of interest, when your bank gets paid they sign a release of interest , then a new title is put in the buyers name or buyer&bank. When there is a loan usually there is no paper title, it's all on a computer somewhere. When you pay it off the state sends you a paper title. But every state is probably different.

 

I could, but then I'd be paying interest until the truck sold. Right now I'm not paying any interest because I'm ahead on the payments.

 

Well you can still do it that way if you go to the new buyers bank. I sold a truck a few years ago and went with the guy to his bank, they basically had me sign some papers saying that I was selling it and no longer the owner and that they ( the bank ) would pay off my loan in full. It was actually a pretty easy process. My loan was through GMAC so my payments were going out of state too.


~Nick