How do I sell my car to a private party when I still owe on it?

Question

I have an 03 camry that I bought with the first time buyer program, meaning 23% interest rate. That payment + mandatory full coverage insurance is simply not worth paying... when the whole term is done with I'd end up paying 20,000 for the car. It's worth about 8000. Right now, that happens to be the same as the payoff amount.

I can get more than 8000 by selling it myself. So my question is, how do I go about doing that? What is the legal process involved for getting the money from them to me to the bank, and getting the title from the bank to me to them? All in a timely manner so the buyer can't change there mind, or drive it around while the title is still in my/the bank's name.

Answer 1

I'm not an expert on this, but I would suggest you take a tour here,there are expert's tips over there.http://car-insurance.bestips.info/car-in...

Answer 2

I am sorry you have been "HAD". That's a ridiculous interest rate. Probably your credit wasn't great at the time.

To be blunt, You can't sell the car. Here's why.

Until such time you pay the Car off, the Bank owns the car. You get to drive it. The Title is still held by the Bank. That's why there's a Lien Entry on the Title/Pink Slip.

Your best bet is to refinance that car. If you have never missed a payment in the 5 years and your credit has improved, you could refinance it. However you are way upside down  in this. Try a local Credit Union.

Some dealer offer you to buy that car and pay off the loan. However what they don't tell you is that they add the loan payoff amount of $20K to the cost of the new car. So you end up paying

$20K New Car + $20K existing = $40K

That's why its not such a great idea to take up that Dealer's Offer.