How to sell a vehicle you still owe on

I currently own a 2010 Toyota Tacoma TRD Sport with about 31000 miles. I LOVE this truck, but I also have my second child on the way, and I love him more. I am looking to sell off this truck, and use the capital to purchase an older, used Tacoma outright, or owing very little.
Can anyone tell me how to do this with the bank, etc? Does it make sense, or is it a foolish move??

 

Meet the seller at the bank have him pay off the loan with one check and pay you the difference. Bank will take his information and send him the title.

 

^^^ Yes. Have to meet him at the bank, since they have your title.

I think its a great move on your part, having a loan on a vehicle is a bad money move.

 

yeah, as was the case with mine when i bought it from a guy who still owed on it.

1. he put ad on craigslist, me and him talked. .. yada yada, i agree to buy it
2. i meet him at his bank (who was his lender) with a check for the full amount.
3. he paid off his entire loan to the bank (and pockets whatever he was able to get out of you. in my case, he just broke even), they gave him the title, we left the bank together.
4. he called his insurance and dropped it from his policy (i had already picked it up), we went to dmv and got the tags switched over and parted ways
5. i took the title to MY bank the next day and only have $5,600 till they give it back!!

so just reverse that haha.

 

Well, since my bank is USAA, it may be a little difficult to meet at the bank. I could put the balance on a credit card to get the title, and just pay it off when the truck sells, I guess.

I can be kind of a moron when it comes to finances, so stick with me here. LOL

 

DON'T SELL THE TRUCK.....ESPECIALLY SINCE YOU HAVE A SECOND CHILD ON THE WAY.....

REASON: You will need a reliable vehicle, and that used "less-expensive" vehicle will cost you much more in repairs. In addition, having a vehicle break down on the road with two kids is a LOT of fun!!!

PS. I'd rather refinance it into a lower interest rate, check with your local credit unions!

 

There are tons of reliable used vehicles that cost a lot less than a 2010 Tacoma. He could buy a 10 year old Camry or Accord with 100k miles for 1/3 the cost

 

Call USAA and ask them the best way since they are not local. They will give you an idea of how long the process will take (to get the check to them and the title back to you).

 

this.

 

I did the reverse of you but I do have my financing through USAA. I bought my tacoma from a private seller and what they (usaa) did was: Spoke with the seller over the phone and got all of his information and a payoff figure from his lienholder (Toyota Financing). They wired the payoff balance to payoff the loan to Toyota, Then they fedexed him a cashiers check for the remaining amount of the selling price. Once he got the tracking number from USAA, I met him and he gave me the truck (without the title). Toyota Finance mailed me the title a few days later and I met the seller once more to have him sign over the title once I received the title in the mail.

 

I thought the same thing, what kind of comment was that?

 

Sir, what do you mean by "you people"

Sir, CALM DOWN!

 

Babies are not that much of a cost burden in the first 3-5 years...it's when the get older when the costs increase, and now that 10year old vehicle is 15 years old and needs to be replaced...do the math!

 

$400 a month for daycare ain't cheap + formula and diapers

Good luck op

 

X2

 

Sell the truck like normal. Buyer gives you a check, you give him a bill of sale. You report it to the DMV as a change of ownership and you send a check to your lien-holder for the pay off and they will release the title to the new owner