Selling while on loan

OP. Pay the truck off then sell it.

Do a budget, stick to it, every spare dime goes on the truck until the lien is gone and you have a new title in your hand. $4k dissapears faster than you think.

It just makes everything easier for a private sale.

Or depending on your state trade the vehicle in to save you taxes on a new one.

Heck if you pay the truck off why not fix the issues and keep? Stockpile the cash you were spending on the loan to pay cash for a new truck in a couple of years.

 

Only adding this for future readers' information - this isn't necessarily true. There's a ton that goes into it (way more than needs to be discussed here), but many states have laws that protect buyers in these situations. Essentially as long as the buyer can prove that the transaction was made in good faith and that the buyer was understanding that the seller was legally able to sell the vehicle, a bank could be out the collateral in this situation. In this case, the bank would be forced to come after the seller in a personal judgement for a collection of unpaid debts - they just wouldn't have any collateral to go after. See it happen all the time.

 

Thanks PackCon. Normally I would do that, but these repairs are killing me. $1K for the A/C compressor, $350+ for the clutch master, and then this water leak I can't figure out which is causing a mildew smell--possibly a mold issue down the road. I've tried clearing out the A/C line but I'm not confident that's what it is. I also tried the "plug" thing on the side panel but that was fine. All that, and I don't really need a truck anymore since I changed jobs.

On my budget it will take 2 years to pay off.
Theoretically I'll make an extra $3-5K in a private sale vs. wholesale trade right now.
If I keep it/fix it, depreciation will be minimal since it's so old, but repairs will probably be at least $2K, bringing the advantage of keeping it down to only a difference of $1-3K, not accounting for the interest I pay over 2 years.

Believe me if I could scrounge $4K and pay it off, or increase my monthly payments, I would!

Knowing all that would you still repair and pay it off?

 

OP - do you have parents or anybody that is in a position to lend you the $4k to get it paid off? Then just repay them out of the first $4k of your sales proceeds (you could easily even calculate interest if you wanted to be totally fair to them).

In my experience, it's MUCH easier to sell a vehicle with a clear title than with a lien. It can be done, but it's really hard to trust a stranger selling you a car that they'll be quick about getting you the title after selling you the vehicle. Just putting yourself in the buyer's shoes.

 

No, I don't have anybody I could borrow $4K from right now outside of taking out another loan, which seems silly.

Yeah, I totally get that, however I'm not asking so much about the difficulty of a private sale while on lien (most of those Qs were answered already), I'm just asking whether folks think holding out for a private buyer is worth it at this point (whether I fix and keep for 2 years or try to sell as-is). I mentioned earlier I am pretty sure I can sell it to CarMax for $4-6K, MAYBE a little more, and cut my losses, vs. spending money to keep it just to sell it down the road for not much more.

I am not actually thinking of trading it in as I have another vehicle right now with zero issues that I plan to keep.

 

The A/C isn’t a necessary repair to keep the truck running. Sooo that one can wait for another time.
The water leak... do you have a thread on that? Its common to have a roof leak issue in these trucks.
Also the carpet can easily be steamed and treated to remove any mold on these trucks.

I do not believe that it would take 2 years to pay off $4,000. I don’t believe it.
You got money you can shave off other places to put on the loan. 99% of the time when people say that they really aren’t looking hard at the numbers and not seeing obvious sacrifices like not going out to eat and cutting grocery bills. People always think they are poorer than they are.

$4,000 in 2 years doesn’t even make sense with an obligatory monthly payment let alone additional payments. Your interest must be attrocious!
Get rid of that loan! Get a 2nd job if you must.
And I say this not to be a dick. I genuinely say it to help. Some people get uptight any time money is brought up.
I hate to see anyone give their hard earned money to a bank.

 

Ahhh!
Sell the Tacoma and say goodbye to the loan.

 

I agree on the A/C not being vital. The water leak I am more worried about mold--when I got the truck detailed prior to sale they warned me the mold could become a nightmare if it got in all the nooks and crannies like under the plastic, seatbelt holes, etc.--could be a total loss. I am continually drying it out but it comes back. I do have a thread on it--it's not the roof or the windshield. I get that it doesn't make sense but I can't figure it out. I could spend more money to have the shop troubleshoot...

So one of the reasons I don't need the truck anymore is I just started grad school--if that gives you an idea of the amount of income I have to spare The economic sense that makes is a whole 'nuther topic.

Gotcha.

Well I'm heading to CarMax to get their final offer this morning -- I will update later with the results and what I decide.

 

Well, then I would tell you that you're probably making a poor financial decision in selling it to CarMax - if you think you can get several thousand more. It would seem to me to make a heck of a lot more sense to even refinance it locally and pay a few months interest (on $4k, we are talking a couple hundred bucks max over a few months) and market it yourself and sell it. But I totally understand the emotional/mental side of it where it's just nice to not have to think about it. If that's worth the difference between what you can sell it for yourself and what CarMax offers, then by all means sell it to CarMax and be done with it. But you'll likely lose a few thousand bucks.

 

Listen to this man. He speaks the truth and it amazes me today how everything thinks you HAVE to have a car payment and you HAVE to get loans for everything in life.

I can tell you that w/o a doubt getting smart about your money is 2nd only to educating yourself on health issues in the grand scheme of life lessons. The #1 rule to live by is never ever ever give your money to banks... no matter how good of a "deal" it is. You start to look at purchases differently if you think in terms of cash. Pay off EVERYTHING and do so STAT. Live like a popper while you go to graduate school and this will mean taking a long hard look at where your money actually goes. No Starbucks. Hell, no 7-Eleven coffee. Nothing. Water is free. Drink that.

The #'s you are tossing around and flippant about losing to "get rid" of this truck are insane to me. You already put money into repairs and it's one of the most reliable vehicles with the lowest depreciation you can possibly buy. So instead, you're going to take a massive hit in depreciation to be out from under the thing and go get something that will likely have it's own problems (possibly even identical to what you already fixed on yours) and have a vehicle that not only depreciates faster but is a complete unknown? This is stupid thinking. Sorry to put it bluntly but from the things you said in this thread you need someone to say something to get your attention because sugar coating isn't going to get it through to you. Fix what's wrong with it. Educate yourself on these issues by searching here and Google and find out how to fix items yourself with used parts if you have to. This will save you TONS of money and your absurd mechanic bills you keep talking about will go away.

Then, you need to put every single damn penny you have towards that loan and get it paid off. Then, put an equal amount in savings once it's paid off. Your next vehicle will be paid in cash. Never finance anything again. No credit cards. Nothing. Loans are a tool of the poor that serves only to keep them poor. You need to flip your ideas on finances and it starts before you make a costly mistake with this truck. You really do need to pump the brakes and stop thinking with emotion and start thinking with your brain. Emotional financial decisions are NEVER wise decisions and will ALWAYS hurt you long-term.

 

Well thank you for that very detailed opinion, Ostrichsak...

Anyway, CarMax lowballed me for $4K, which was less than lowest KBB trade-in value ($4,400) and would leave me with nothing. I would have expected that except I had read so many rave reviews about people selling their cars to CarMax (though the reviews of buying there are always dismal). So for now I'll just see if anyone bites on my ad. General theories of economics aside, I simply can't afford to fix these issues and if the mold gets out of control, despite my best DIY efforts, I'm looking at bigger problems than just breaking even on my loan.

I've got 7 days to accept the CarMax offer. As mentioned before, I'm not planning to buy another vehicle.

 

It's actually a cool selling opportunity. Credit history is one of the main criteria that the lender takes into account when deciding whether to issue funds to the borrower. If it is anything less than stellar, it can be much more difficult to get a loan. In fact, the topic is quite interesting because not everyone can boast of good credit history. But don't panic right away. First, you should carefully study the problem, because there are no hopeless situations. For example, our family also faced a similar situation, which ruined the credit history. My husband foolishly forgot to pay the loan installment on time. This has already played a cruel joke on us. When we decided to take a loan for a car, we faced a lot of rejections. After studying a lot of information, we came across Mortgage Advisor Manchester. I hope that our experience will help you not give up and find a way out of this situation!

 

Try other local dealership offers, you'd be surprised. Used trucks, especially ours, are going for a premium right now. You don't have to tell them anything about what is wrong with it mechanically. Just say you have a truck, let them look at it and give an offer.

 

Is the leak from rain or from AC condensation? Find a place to park under cover or tarp it if it’s rain. If it’s the AC, stop using it until you get the drain opened up.


Edit: Holy resurrected thread from 2018. I was attempting to address the op’s fear of getting mold in his car. Now that I noticed the date I’ll assume the car has already been disposed of in a haz mat site or he’s sold it. ☺️

 

This is the way right here. Keep in mind buyer's bank has a vested interest in making sure they receive the title from you or your bank, so they'll figure out a way to make it happen securely. Have dude talk to his bank about how they want to go about processing the transaction. Like Daria said, this type of sale happens pretty often.

 

reviving an old post but welcome TW

wtf?

 

This sounds like the way to go. Still I’d call your local dmv and bank. Prepare yourself for this, it’ll take way longer than you can imagine and severely frustrate you. Maybe you’ll get lucky and they’ll both say the same thing, highly unlikely. I can see the dmv saying do this, if you do it differently you will be fined, be liable for the vehicle until we transfer ownership in 6-9 months, fined for canceling your insurance, banned from obtaining ownership of any vehicle until we decide to consider the matter closed in 3-5 years. Yeah I don’t like the dmv, being forced to visit their office, I’d prefer visiting my dentist who once said that’s not pain you’re experiencing.