So I'm pretty new to the entire car selling/trading scene. I am looking to sell my altima myself. It still has the 7yr/100k warranty on it and I still owe some money on it as well.
So how do all those details work out when handing the keys over to someone after they decide to buy it. To my knowledge it should go something like this...
-Buyer meets me at his bank.
-I cash check at his bank, and have the bank write me a check on the spot and/or transfer to my account.
-Verify money in my account and/or take the check FROM THE BANK (not from the buyer)
-Deposit check in my account.
-Hand over keys.
But where does the registration, insurance, warranty, and existing car loan I have come into play?
Do i pay off the loan, receive my title in the mail, and then mail it to the buyer (on the good faith of the buyer?)
I'm just a bit fuzzy on the details and I want this to go as smooth as possible...
Selling a car with warranty and loan =(
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RobPaulson
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- Car: 2013 Subaru WRX
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RobPaulson
- Posts: 6577
- Joined: Mon Jun 09, 2008 4:04 am
- Car: 2013 Subaru WRX
Re: Selling a car with warranty and loan =(
damnit no edit button... also, how do you transfer the warranty over? or can i like... "trade" that back in at the dealership for a % of the original cost?
and if those are realistic options, which one is a better choice?
and if those are realistic options, which one is a better choice?
Re: Selling a car with warranty and loan =(
I believe the buyer of your car has to contact the manufacturer with the cars VIN number to transfer over the warranty under his name so if there is any problems with the car you have sold him he is now under warranty.
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frapjap
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'07 Subaru Legacy - Location: South Coast Massachusetts
Re: Selling a car with warranty and loan =(
In this situation I've done two things:
When I was the seller in your situation:
I took a balance transfer from my credit card (you could probably grab a personal loan these days), MADE SURE warranty was transferable, paid off my loan, received title, sold car, made bill of sale/contract stating that I'd follow through, and then called to transfer the warranty to the new owner when the car was sold. This is the most streamlined method I can think of because you pay off the car before you even put it on the market. It makes the buyer more confident in you as a seller.
When I was the buyer from someone in your sitaution:
I wanted the car. He informed me that there was still a lein, but the warranty was in fact, transferable. He wanted a large sum as a "good faith payment" )probably for the remaining balance on his loan. I sternly declined and gave him $100 to hold the car and have MY "good faith in him" that he'd not go and rip me off and not follow through. Contract was signed. He never paid off the car in full, but we met at his bank, and I gave him a check. He deposited it. A day later, he paid off his lein and I took ownership of the car. BUT, I couldn't drive it anywhere but home because I didn't have a title for registration, insurance, etc. When he received the title a week or so later, I registered the car, confirmed with the warranty company my ownership, and went on my way.
Note that the second method takes a serious and trustworthy buyer and seller. At this point you have to sell yourself as having these qualities and not d!ck around time wise (no matter WHAT comes up) when it comes time to pay off the loan, turn around the title, call the warranty company etc, etc. My seller tried to tell me about some other things he had to do this day that were making his life soooooo hard and tried to reschedule me a few times, but I wouldn't have any part in that because this should be his #1 priority- especially if he wants to sell HIS car. I had no trouble in telling him all of that and beat the bushes on a daily basis to see where he was. Overbearing? Maybe. But worth it to not get screwed, not get a warranty, or not get a title? Absolutly.
What I'm trying to say is be sure the buyer is confident in you if you go this route.
When I was the seller in your situation:
I took a balance transfer from my credit card (you could probably grab a personal loan these days), MADE SURE warranty was transferable, paid off my loan, received title, sold car, made bill of sale/contract stating that I'd follow through, and then called to transfer the warranty to the new owner when the car was sold. This is the most streamlined method I can think of because you pay off the car before you even put it on the market. It makes the buyer more confident in you as a seller.
When I was the buyer from someone in your sitaution:
I wanted the car. He informed me that there was still a lein, but the warranty was in fact, transferable. He wanted a large sum as a "good faith payment" )probably for the remaining balance on his loan. I sternly declined and gave him $100 to hold the car and have MY "good faith in him" that he'd not go and rip me off and not follow through. Contract was signed. He never paid off the car in full, but we met at his bank, and I gave him a check. He deposited it. A day later, he paid off his lein and I took ownership of the car. BUT, I couldn't drive it anywhere but home because I didn't have a title for registration, insurance, etc. When he received the title a week or so later, I registered the car, confirmed with the warranty company my ownership, and went on my way.
Note that the second method takes a serious and trustworthy buyer and seller. At this point you have to sell yourself as having these qualities and not d!ck around time wise (no matter WHAT comes up) when it comes time to pay off the loan, turn around the title, call the warranty company etc, etc. My seller tried to tell me about some other things he had to do this day that were making his life soooooo hard and tried to reschedule me a few times, but I wouldn't have any part in that because this should be his #1 priority- especially if he wants to sell HIS car. I had no trouble in telling him all of that and beat the bushes on a daily basis to see where he was. Overbearing? Maybe. But worth it to not get screwed, not get a warranty, or not get a title? Absolutly.
What I'm trying to say is be sure the buyer is confident in you if you go this route.
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RobPaulson
- Posts: 6577
- Joined: Mon Jun 09, 2008 4:04 am
- Car: 2013 Subaru WRX
Re: Selling a car with warranty and loan =(
WOW! Awesome info Ray! Thanks so much, this is a bit of an eye opener for me, time to make some calls and do work!
Re: Selling a car with warranty and loan =(
I sold numerous cars (8+) that I had loans on. The way it worked out for me was :
1) Agreed on a selling price
2) Met buyer at the bank
3) Buyer presented Cash/Money order/check to bank
4) Bank verified funds by either calling buyers bank or just because of the fact that it was a legit money order
5) Bank gave me the balance in cash after loan obligation was fulfilled
6) Bank wrote lien release to buyer and gave title to buyer.
7) Buyer went their marry way, I went to find my next ride, in case already didn't buy one.
Bank acted as a mediator for me increasing buyers confidence in the deal.
One time, a buyer trusted me with 14k of their cash money. They gave me the cash
and drove off with a bill of sale. I paid the bank got the lien release then mailed the
title overnight to the buyer. I kept buyer in the loop in every step, they didn't ask for it
but I just did it out of gratitude.
Hope this helps. It was easy for me as I almost always financed my loans through a local credit union. If you financed through one of the large
banks, that doesn't have an office in your state, then this wouldn't work.
1) Agreed on a selling price
2) Met buyer at the bank
3) Buyer presented Cash/Money order/check to bank
4) Bank verified funds by either calling buyers bank or just because of the fact that it was a legit money order
5) Bank gave me the balance in cash after loan obligation was fulfilled
6) Bank wrote lien release to buyer and gave title to buyer.
7) Buyer went their marry way, I went to find my next ride, in case already didn't buy one.
Bank acted as a mediator for me increasing buyers confidence in the deal.
One time, a buyer trusted me with 14k of their cash money. They gave me the cash
and drove off with a bill of sale. I paid the bank got the lien release then mailed the
title overnight to the buyer. I kept buyer in the loop in every step, they didn't ask for it
but I just did it out of gratitude.
Hope this helps. It was easy for me as I almost always financed my loans through a local credit union. If you financed through one of the large
banks, that doesn't have an office in your state, then this wouldn't work.