Selling a car, how to deal with payment?

Question

Hi, I'm going to sell my 2006 car for around 25k+. If I'm selling it to an individual and not to a dealer, what kind of payment I should take? Of course, I want to receive the 25k+ in full, but it's difficult to find people with that much of cash. Most importantly, I don't want to get ripped!!!! Please help.

Answer 1

LIke the others have said... you are not a buy here pay here car lot.  I wouldn't trust someone to make payments on a candybar.  

Is $25k what you own on it or what its worth?  Unless you put some serious cash down or own it outright I can assure you that you have negative equity.  So you will have to sell it for less than what you owe unless you find a dummy.  Which means, you will have to come up with the difference between the value of your car and what you owe on it to actually sell it.  Be prepared for that and good luck!

Answer 2

You are really taking a chance on this.  You must get the loan out of your name if at all possible.  If you don't and they default, the loan company will come after you and you will have to pay.  If you do sell it on time and you keep the loan, make sure that they keep up the insurance payments.  You'll keep the title in your name.

I have never sold a used car.  When I've bought, I've paid in full and transferred the title properly.

It might be worth money to save the agony of selling and sell it to a dealer.  At least you won't be ripped off by someone wrecking it or just deciding they can't pay any more.  

Small claims courts usually have a limit of how much money you can get - about $5,000, depending on the jurisdiction.

Answer 3

You shouldn't take payment, you'll never get the payment on time.  If the guy should damage the car and decided he doesn't want it anymore, you are stuck with the trash.

Tell the guy to get a loan from a bank and have him make payment to a bank instead of you.

Answer 4

This is very important so I will capitalize....CASH OR CERTIFIED CHECK.  Do the meet heavy, lots of crooks out there.

Answer 5

I personally wouldn't take any kind of payments are your own from an individual person.

    It is up to the person to get a loan and pay yo uthe full 25K then make payments ot the loan company.

    Even if you get them to sign a contract for the rest after a down payment how would you enforce it? You would have to get a lawyer ect. ect.

    I would let the interested party get a loan by themselves and pay the while amount to you and then they pay the loan back according to their agreement with them.

     Just my two cents. Thanks for reading,

Answer 6

You should take nothing less than full payment.  Let the buyer go get a loan to pay you in full.  Unless you are a bank or a loan company, stay away from banking or loaning