Selling a truck you still own money on

Greetings Ladies & Gents!

I am exploring the possibilities of selling my 2014 DCSB; life is happening faster than disposable income lol. However, as it is new I still owe a decent amount on it and I have no idea how the process would work for selling a vehicle that is not paid off. Anyone out there have experience in this department that could help a brother out? Thanks in advance!

 

Go ahead and make your deal, get cash or certified check, get payoff from lender( do this first ), when you have your money, pay the ballance. Make sure you work out the details with the new buyer so he can get the title. If his check comes from a lender, Bank etc., they should receive the title.

 

iwould imagine it works like houses. as long as the banks get their money it's all good. did you finance through a bank or through the dealership?

 

Thanks! So essentially I should:

1. Trade cash/certified check for truck
2. Pay off what I owe
3. Send title to new owener

Am I understanding that right?

 

Hypothetical numbers: Lets say you have a loan in the amount of $20,000. You sell the truck for lets say $15K. The seller then gives you a check or cash. You will then take that $15K and put it towards the outstanding loan balance of $20K, therefore now owing $5K. You will then continue to make payments on the $5K loan balance till it is paid off. When its all said and done, you are out $5K.

Best case scenario you are out taxes you may have paid and processing fees, but that will be difficult.

 

Through Toyota Financial

 

How much is the balance and how much can you sell the truck for? Thinking one is less then the other.

The logistics are easy, its the lumps you might take that suck.

 

If your gonna sell it privately your gonna have to find a buyer to work with you. Because you need his money to pay it off and get a lien release from the bank. It can be done, I did it awhile ago. It gets complicated. Most buyers ain't gonna just give you money to pay it off. Me and the buyer went to my bank, we had to wire his payment to the bank and the bank in turn faxed the lien release to my bank and that was it.

 

Make sure buyer knows you have a lien on the truck and don't hold the title. That's how you will describe your circumstance.

 

Most buyer not gonna give any money and not get a clean title. By your numbers he would have to come up with $5000 right away. The bank not going to let him make payments.

 

That makes a lot of sense, hopefully I can find a local buyer. The folks here on TW are pretty reasonable gentlemen for the most part, and I hope to price it to make it worth their while. (for those of yall truck shopping, it's a 2014 DCSB M/T w/Icon stage 3, coughcough lol)

I owe less than I would be selling for, so that should make things a little simpler.

 

Just went through this...

Get your "10 day payoff" from your creditor. This is the amount of money you will owe them at the end of 10 days (changes because of interest).
Get a cashier check from the person buying your vehicle. If they're paying you more than you owe this is easy. If they're not, then they might not be able to get financed for all of it... As a buyer I once had to pay the bank $300 to cut a $25,300 check because they'd only finance $25,000 ... it's weird and messy, but basically you need to get the money from the person buying your vehicle, at least the full amount of your lien. If you're selling it for less than what you owe you need to make that up in cash to your bank.
You go to the bank with the buyer. You'll tell them you're selling a vehicle. They'll take the check and your account info and process it.... DON'T LET THEM TAKE THE VEHICLE YET. This is the really shitty part, the bank will not release the title until the check clears. This means they'll likely send it to you (no longer than 10 days) in the mail after it's paid off.... this meant I couldn't take home my truck until the bank signed over that title.

There's a lot of trust involved and it certainly is messy... But most people who are looking to buy a vehicle at that price range are pretty legit... just don't do this with a $2,000 beater... that needs to be an all cash transaction lol

 

I've done this before. Not sure about your situation. I had my vehicle financed through my credit union and seller was going through same credit union. I signed the loan agreement to purchase. they signed the title over and was done.

Best advice is to meet at buyers bank to process. loan officer will get payoff from your lender. if you have equity above payoff, they will cut you a check. you will sign a release of title and leave, hopefully with a check.

Call your lender to see how they will process. every lender is different. also, have buyer do the same. you don't leave these things up in the air. Improper planning leads to chaos. we don't want that.

 

Thanks Wolves and Snowman for the tips. I will give Toyota Financial a holler to see what their SOP is. You TW guys are too helpful, can't thank yall enough.

 

if you are selling it personally to another individual and not trading it... go down to the bank that currently has the loan, bring enough cash to pay any difference between what your buyer is paying and what you owe, and they can do the rest. If you are due money back they will cut you a check.

 

The best way to deal with the title issue is to have you and the buyer sign a power of attorney note so the title goes directly to him and not you. Most buyers won't be that trusting that you will give it to them and they can't reg the truck without it...