Selling an NSX that's financed...

[cxr344]

I'm in the process of selling my NSX, however I still have the car financed and I don't have the cash to pay off the balance. I can't get the title from my bank until the loan balance is paid, and it takes them 10 days to send it after that.

I have a buyer who's very interested, but now I'm a little unsure of how to proceed if he does decide to buy the car. It seems to me like the only way to sell it would be to write up a contract stating that he's paying me for the car and I'll transfer the title to him once I receive it from the bank. That seems like it would be a hassle and potentially risky for the buyer though, so I'm thinking there has to be a better way to do it.

Any advice would be appreciated.

 

[Mojorator]

I'm in the process of selling my NSX, however I still have the car financed and I don't have the cash to pay off the balance. I can't get the title from my bank until the loan balance is paid, and it takes them 10 days to send it after that.

I have a buyer who's very interested, but now I'm a little unsure of how to proceed if he does decide to buy the car. It seems to me like the only way to sell it would be to write up a contract stating that he's paying me for the car and I'll transfer the title to him once I receive it from the bank. That seems like it would be a hassle and potentially risky for the buyer though, so I'm thinking there has to be a better way to do it.

Any advice would be appreciated.

I think that you would have to somehow make sure that the BUYER is comfortable with this..Most buyers are OK with it (If they TRUST YOU), but SOME might be reluctant to do this.


Good luck.

Mike

 

[Bigglezworth]

Totally different in the US than in Canada when completing a sale like this. That said, I purchased a vehicle through a US internet transaction a couple of years back in which the owner had an outstanding loan on. I provided a down payment via internet wire so that the vehicle would be held and drew up a contract that confirmed the particulars of the downpayment along with that of paying the remaining amount. For the remaining amounts owing, I provided a USD Money Order for the entire amount owning minus 10% and flew down to meet the seller in person. I had the MO issued jointly to the financial institution that had invested interest in the vehicle and to the seller. Both parties would need to sign the MO to process it. I then met the seller at their bank where the MO was processed and the title released to me. The 10% I mentioned being retained above was carried on my person as cash so that I could retain some $$$ should I arrive and find the vehicle in the condition represented via photos, local inspection agencies and on the phone.

Cheers
Tim

 

[NsXMas]

buyer should pay the bank for the car, and have the bank issue the title to him/her.

 

[NetViper]

I have bought a car that was still financed, and sold a car. It is very simple. Buyer buys you the full amount. You send the payoff to the loan company. They send you the title and you send it to the owner. It did take about 3 weeks for me to get the title to overnight to the new owner though.

 

[Ponyboy]

I have bought a car that was still financed, and sold a car. It is very simple. Buyer buys you the full amount. You send the payoff to the loan company. They send you the title and you send it to the owner. It did take about 3 weeks for me to get the title to overnight to the new owner though.

Is this not the usual way to go forward this type of transaction?

 

[Cairo94507]

Go to the bank with the buyer and let him pay the car off and have the bank send him the title. Why get in the middle of it. Anything above what you owe that you receive for the car he can deposit into your account too.

The other way is to go to an escrow company I guess.

 

[larrynsx]

Does anyone knows that the bank does not have the title of your car? When you payoff your loan, the bank will have DMV send you the pink slip, not send from the bank.

 

[chicagoNSX]

I have bought a car that was still financed, and sold a car. It is very simple. Buyer buys you the full amount. You send the payoff to the loan company. They send you the title and you send it to the owner. It did take about 3 weeks for me to get the title to overnight to the new owner though.

That is a very trusting buyer, I would not do this. (I mean this in no offense.) I have purchased two cars from individuals who owed money on them, in the first instance the seller was able to obtain the title from the credit agency (since he had all his other accounts there) and I brought him cash (he did not trust a cashiers check). Simple transaction.

The other way was that I had two cashiers checks made out which totaled the purchase price. One went to the individual and the other (the payoff price) went to the credit agency which included a bill of sale (filled out by me and the purchaser) as well as a signed document stating the title should be mailed to me (not the original owner). With the title sent to me I was in less risk of giving the individual my money and trusting him with the title as he would still own the car. Finally I had the seller sign a power of attorney document stating that I could sign the title stating he had sold the car (this was obtained from my bank).

I would be leery giving an individual money and hoping they would send you the title. While I am sure NetViper is a trustworthy individual, not everyone is.

 

[len3.8]

That is a very trusting buyer, I would not do this. (I mean this in no offense.) I have purchased two cars from individuals who owed money on them, in the first instance the seller was able to obtain the title from the credit agency (since he had all his other accounts there) and I brought him cash (he did not trust a cashiers check). Simple transaction.

The other way was that I had two cashiers checks made out which totaled the purchase price. One went to the individual and the other (the payoff price) went to the credit agency which included a bill of sale (filled out by me and the purchaser) as well as a signed document stating the title should be mailed to me (not the original owner). With the title sent to me I was in less risk of giving the individual my money and trusting him with the title as he would still own the car. Finally I had the seller sign a power of attorney document stating that I could sign the title stating he had sold the car (this was obtained from my bank).

I would be leery giving an individual money and hoping they would send you the title. While I am sure NetViper is a trustworthy individual, not everyone is.

This way worked fine for me twice as well.
I Overnight the payoff to the Leinholder as extra insurance.

 

[c-dog]

One of the previous posts had it right...

The buyer and seller go to the seller's bank. If the purchase price exceeds the balance on the loan payoff amount, then the difference issued to the seller. If the purchase price is less than the loan payoff amount, then the seller must pay the bank the difference. The bank takes care of all DMV filing. A few weeks later, the seller's bank sends the new owner the pink slip.

Note: If the buyer is financing the purchase, the banks will do a wire transfer between them.

 

[TyraNSX]

If you are out of state (especially outside of CA) be very careful of getting title issued into your (new buyer) name. The state will want sales tax. If you trust each other, pay off seller & his bank. When bank or DVM spits out title, he sends it to you. Then go pick up car or have it shipped or whatever. Keep track of odometer reading on car & agree where it will stay during wait. Extra special CA caution- if a paperless title you really will have to wait. If a normal state, have seller make sure his bank has title ready to roll ahead of time so when they release lien, he can sign it over on the spot.

 

[NSXFreak00]

When I bought my NSX, I had an issue with this as well. I think my seller was little reluctant to tell me he had an outstanding loan on the car and that he would not get the title until he pays the balance to his bank.

He told me that I would get the car and the title once my cashiers check clears the bank. I said no way.

So our compromise was, I pay the full amount to him and in return he gives me the car, and writes up signed bill of sale (receipt).

When the title was released from the bank, he sent me the title.

Not too bad, but in the beginning, his stand on not giving me the title nor the car until the check clears was nearly a deal breaker.

 

[liftshard]

You make payment to the lienholder for the sales price of the car.

Then, THEY pay the owner whatever the surplus is. You take the car straightaway and both sides have a sales contract.

 

[Dave Hardy]

I use a small independent credit union, and they keep the title at their main location. When I'm ready to pay off a car, I give them money and walk with the title.

I've sold a car that I owed on. I owed $9,000 and sold the car for $11,500. The arrangement we made was that he gave me $9,000, I gave him the car, I paid it off and got the title, then we met the following weekend and I got the additiona $2500 and he got the title. Worked out fine as long as everyone is trustworthy.

 

[Bigglezworth]

You make payment to the lienholder for the sales price of the car.

Then, THEY pay the owner whatever the surplus is. You take the car straightaway and both sides have a sales contract.

This is exactly what I was outlining in my post above and worked fine. Had the car & title in short order and was on the road homeward with a nice sunset ahead.

 

[steveny]

Only one way I would do this transaction if I were the buyer. Make out a full payment check for the full amount agreed upon to buy the car. Take the check personally to the bank which holds the lein on the vehicle. Then the bank sends me the title and sends the overpayment, if any, back to the seller.
That is the only way I would feel comfortable enough to do the transaction as the buyer.

 

[Bigglezworth]

Only one way I would do this transaction if I were the buyer. Make out a full payment check for the full amount agreed upon to buy the car. Take the check personally to the bank which holds the lein on the vehicle. Then the bank sends me the title and sends the overpayment, if any, back to the seller.
That is the only way I would feel comfortable enough to do the transaction as the buyer.

You are saying the same thing I outlined above. Payment should be provided in joint to both parties. The bank will cash the payment, retain the amounts they are owed as a lein holder, and provide the remainder to the seller. You get the title on the spot, bill of sale is provided by seller, and the bank needs to issue another document indicating they no longer have any invested interest in said vehicle.

In addition to the above, a lein search against the vehicle should be provided to ensure additional leins (i.e. mechanics leins) don't exist. Lots of shady people out there and it's always a good practice to take the buyer beware approach to things like this.

In Canada we don't have titles issued on vehicles like those to the South of us do. We simply rely on a bill of sale for the vehicle and that the seller has performed a proper search on the vehicle through any one of the numerous vehicle registries that exist. It was an eye opening experience to find out that there was an actual title that went with the vehicle when I purhcased one of my other cars 3 years ago out of the US. :tongue:

 

[steveny]

Only one way I would do this transaction if I were the buyer. Make out a full payment check for the full amount agreed upon to buy the car. Take the check personally to the bank which holds the lein on the vehicle. Then the bank sends me the title and sends the overpayment, if any, back to the seller.
That is the only way I would feel comfortable enough to do the transaction as the buyer.

...and as the seller I would call the bank several weeks later to make sure the loan has been marked as paid. Sometimes this type of transaction can slip through the cracks and the loan will not be marked as paid. In addition the bank will not send out a late payment notice. Months can pass before the seller goes to get a loan and then it shows as missed payments on your credit report. This is not easy to get the late payment mark removed from your credit report.
...Believe me I know this all to well. Happened to me on a boat I sold.

 

[cxr344]

The problem for me is that the financing is through E-Loan, and the actual loan servicing is done through a company called SST, so there's no local branch that I can go to (at least not that I know of). Luckilly I don't think this is going to be a problem, the buyer who's interested is local and he seems to be okay with just signing a contract and waiting for the title to come.

 

[NSXUSA]

I sold a leased car from NJ to a private buyer in CA. The car was leased from a NJ ban and had NJ license plate, but I had moved to CA with the car. Having a third party auto dealership do the transaction makes it extremely simple. The auto dealer took payments from the buyer and from me (the seller) to cover the difference between the selling price and the pay-off balance. The dealer issues a temporary registration onsite.

The buyer paid $200 additional to the dealer for all his work, but she also able to buy an extended warranty package from the same dealer. The warranty package was worth paying the extra commission for this buyer. For me, since I don't pay anything extra, I was happy to go along.

 

[liftshard]

Yeah, if you can get a dealer to do it, you're in the clear.

I got my 00 from a seller and member here, THonda. I just flew up to NY. He picked me up. I filled out a check made payable to his lienholder. Gave him some cash. Talked it over w/ the relevant lenders and noteholders. Drove off w/ car. He got his account cashified within a day or so and they cut him a check.

You buy a later model, you're talking about putting 50, 60 thousand in someone's hands w/ a promise that "yeah, I'll pay it off, I swear." Tetsuo was as straight a shooter as they come out there, but there's just too much that can go wrong even if everyone is on the level. Sh!t happens sometimes. It's better to leave the financials in the hands of the banks and get the obligations out of the hands of the buyer & seller.

The buyer should show up with cash or a Cap One Auto Finance check or similar instrument and make it payable to the lienholder. Then, the pros at the banks handle all the rest of the nonsense. That way, nobody has an emergency, nobody loses a check, nobody makes a mistake, nobody's GF suddenly flips out and absconds w/ the dough, the check can't get lost or stolen. PTO lienholder, drop in Fedex envelope. Everybody has copies and faxed backups. And, Fedex doesn't lose stuff as a rule.

Think of it like a professional transaction. How would a business or dealer do something like this? You do it that way, it may take a couple more days for everyone to get gratified, but the safety factor more than makes up for that. Sellers get scammed just like buyers do.