I am selling my 2003 Jeep Grand Cherokee. I still owe the bank $2300. When it sales what steps should I take?

Question

Should I write the buyer a bill of sale and then tell them I will give them the title in the next few days? I just want to make sure I know what I'm doing when I do find a buyer. I also have it listed on Ebay. Would I have to do anything different if the buyer was out of state?

Answer 1

You should tell your buyer that you will need to pay off the vehicle before you can deliver the title.  The seller may feel a little nervous about this, so you should set up an escrow account, ask your bank or a saving and loan if they will assist you, they will hold the funds, they will disperse the funds to you after the finance company has signed over the title.  Be advised:  it may take up to 6 weeks to get the title.  Your buyer may not want to do that.  Otherwise if you can, pay off the vehicle now, and hopefully by the time you sell, you will have the title.  Good luck.

Answer 2

You will have to come up with the additional $2300 so you can get lien release form the finance co. Then you sign the title and give it to the buyer. If the buyer is out of state then talk to the finance co. on how to proceeds, my guess is the buyer can send the money payable to the finance and you will send the balance to pay off the loan and then you or the finance co will send the title and release.

Answer 3

Pay off your debt prior to selling it. Or don't buy what you can't afford. Pay cash for everything!