selling car with loan on it

Hey got a quick question that I want to see what you all think I should do here since I have never done this before. I have someone buying my Mazda tomorrow. They will be paying the loan off via cash at my bank. From how I understand it, when the buyer pays Chase, Chase sends the title of the car to me then I guess I get it notorized and everything so the buyer can take it to the title shop. Now, while I am waiting for the title to get to me in the mail, should I still keep the car? My first instinct would be to keep it since everything is still in my name and if something should happen, i still have the car.

I have never done this before since I have always traded in or had it paid off already so any advice is appreciated.

Thanks

 

I just sold my tundra with the same situation, if a third party is paying off the loan then you can release the car to them and just wait for the title to arrive for you to sign it over. Just be sure to take pictures or scan all paperwork.

 

You can release the car to them but just have a bill of sale with the date the vehicle was sold so you have backup in case something happens. When I sold my cobra the guy traveled over 2 hours away. I sold them the vehicle, did a bill of sale, and left my tag on the car so they can get home. They mailed my tag the next day and I signed and mailed the title to them when I received it. Not everyone would trust someone to use their tag but the kid came with his dad and they seemed like responsible people.

 

Thanks guys. I think my only worry is since they are going to write just a regular check (not a cashiers check or something like that), i dont want it to end up bouncing, then me not having a car or money. Thats why i figured it would be best to keep the car until i see the money has cleared

 

I would definitely do that unless they bank at the same bank you do and the funds can be verified at that point.

You might check with your DMV. It's going to be different with every state. In California, there's a transfer of ownership form attached to the title that the original owner fills out, signs and mails to the DMV to release ownership (no notary required) in addition to signing over the title. The purchaser then takes the title to the DMV to have it transferred into their name. It releases your liability.

 

If they're paying with a personal check for sure wait until funds have cleared.

 

i would just ask for cashiers check, just to avoid any issues.

 

This is what I ended up doing. It was much easier and they have the car now instead of me having to wait to verify funds.


Thanks again guys!

 

anytime! are you planning to get anything after you sell the mazda?

 

yep. Going to look at a subaru tomorrow. Been trying to find an older yota pickup in my price range (which isnt much) that isn't beat to hell or full of rust.... not having any luck!

 

Call or visit your Department of Motor Vehicles (DMV). They will tell you the exact steps needed to complete the transaction properly & legally. If not done correctly, the buyer may not be able to register the vehicle and/or you could be subject to certain liabilities.

Those steps might include a notarized bill-of-sale, milage statement, title transfer certificate, insurance purchase, sales or property tax payment, license plate return, and similar. Some of this may be found on the back of your vehicle registration form. If the buyer lives in another state, make sure he also checks with his DMV (potentially different requirements).

Check with your insurance company regarding liability if the buyer has an accident. Most will say the buyer should have insurance when he picks up the vehicle and your bill-of-sale (signed by both seller & buyer) should contain a clause stating your insurance no longer covers the vehicle. In every case, cancel your insurance on the vehicle as soon as possible (you don't want your rates going up following an accident).

Your bank also has a say in this, so check with them as well. At the very least, forms will have to be completed by both you and the buyer (which may require either you or the buyer to bring certain documents).

 

Well post some pics if you get it, Im looking for an older 4 runner myself or pick up but very few that dont have a blown motor

Good luck dude

 

good luck finding one! Good running toyotas are hard to find these days. kinda sucks! It is crazy how expensive the older ones are too.