^^This is the only way to make it go smoothly, this way, the buyer pays the BANK the agreed-upon sales price for the car, and you work out the difference with the bank. The buyer does not give you any money. If you owe less than the sale price, the bank cuts you a check. If it's upside down, you pay the difference and the buyer gets the title in the mail.


In CA, if the car has been owned by a financial institution since new, there is no actual paper title, it's a digital record. The first time a title is issued is when the lien is paid off. Sometimes this can add time to the transaction since the financial institution has to request the title, then sign it over to the new owner. Time and sanity can be lost in this process!


This makes it more difficult if they do not have a branch you can walk into. I ran into an issue back in 2007 dealing with a car financed by WFS Financial and they ended up taking 3 months to get the title to the new owner. It was terrible and they were terrible to deal with. On the flipside, every time I have dealt with a CU on this sort of thing, it has gone smoothly. I have bought and sold several cars this way.

Absolutely - because, they have probably done this before.

In any event, it is always easier, if you don't have a local branch to deal with, to sort out the financials and THEN sell the car. It's just not always an option.

 

Question, did you give the buyer the car while you wated 3 months for the title? i understand what i need to do to get the car out of my name, i just want to know if i can give him the car while i wait for the title. After i sign the bill of sale, notice of transfer and release of liability, the car is his right?

 

Yes, due to the "awkward" situation and the hassle of dealing with WFS Financial, we wrote up a contract between ourselves and handed over the car. I just did not feel right holding onto it when they had paid their money for it.

Well, once you sign the BOS, transfer and release it's no longer YOUR responsibility, but it still belongs to the bank. If the money has been paid by the buyer, the buyer has insured the car (important!!!) and the only holdup is waiting on the title, there should not be any issues. Just document everything, and both parties keep copies. But this information should really come from your bank! I hope it's helpful either way.

 

Damn...I have to agree that mad knowledge was indeed dropped by Rescuer. Good info right there.

 

Probably easiest to have new buyer take out a loan, then the banks can deal with all the paperwork. Then the buyer can just pay the loan off if they have the money to do so.

 

That's a great idea if the buyer is willing!