Selling a car I still owe money on?

Question

I'm selling my truck and I owe money on it.

The person will pay with a cashiers check...

how do I go about doing this?

please explain entire process

Answer 1

This question is asked at least 4 times every day.

It's really a simple process.  In order to sell your truck you have to pay off your existing loan in full.  Meet the buyer at your Financial Lender.  Sit down with a loan officer.  If the selling price covers the full loan payoff then all you need to do is take the check from the buyer, hand it to the loan officer and process the loan payoff.  The truck is now paid for so you can now legally sell it.  The Bank will then process the title paperwork and send it directly to the new owner.

The only sticking point in this whole process is if the selling price of the truck does not cover the full loan payoff.  If that is the case (as it most often is) then you will need to come up with the difference with money out of your pocket to pay off the loan balance.

If the negotiated selling price of the truck does not give you enough money to pay off the loan then you will need to come up with the difference out of your pocket.  And this needs to happen at the time you sign over the title paperwork.

Make sure you contact your bank and set up an appointment in advance if you are going to work this transaction.

Answer 2

State laws may vary on this, but the procedure is to pay off the loan immediately after you accept payment for the vehicle, and have the lender show that the lien is released. Then you will have a clear title to give to the buyer. There are time limits, and you need to stay within them. You need to consult your DMV for details specific to your state.

Answer 3

You can't-you do not have a clear title. In other words you can't sell your truck because you do not own it. It isn't like selling a house that you owe a mortgage on. The best way is for you to be handed the money, pay the truck off and then put it in his name once you get the title.