Selling my car out of province - HELP!

[E46..sTyLez]

Ok so I basically need someone who knows how banks will operate, and how I can avoid being ripped off somehow.

- Guy responded to Kijiji add, seems legit. Said he will buy the car as long as it is as advertised (which it is).

- He got approved by his bank and wants to fly here from Sask with a bank draft and drive the car home.

- Here's where it gets difficult: I have a lien on the car from TD auto finance and it is for significantly less money than what I am selling it for. I am not in the position to pay off the lien in cash, just sunk all of my extra cash into the dp on my house.

- I'm assuming his bank would make one cheque payable to TD Auto Finance, and the other (for the balance) to me. If that's the case, who will his bank release the TD cheque to? I don't want to have to go on his word that his bank will be paying TD for me, and he can't exactly have them pay TD until he has at least seen the car.


Anyone have some insight for me? This would be really simple if his bank was just down the street or something...

[Darkane]

2 cheques to you. One in the loan amount and you directly go pay it with him there.

[E46..sTyLez]

Originally posted by Darkane
2 cheques to you. One in the loan amount and you directly go pay it with him there.

Most banks won't cut both cheques into my name because they want a guarantee that the lien will be paid. They could perhaps write it out to TD, and hand it to the guy for in-person delivery to TD...Now I need to see if TD finance payments can be made locally. I believe they are a separate entity from TD bank.

[Darkane]

Can you give him the loan details and have him pay it at the branch? He'll have a banking branch here. Go with him.

[lamp_shade_2000]

when I sold my car, it was financed with TD as well, I met the buyer at a TD branch where he gave me the cheque, I deposited the money into my TD bank account, and paid the loan off directly with him there as proof. The bank did mention that a lein can take up to I think it was 90 days to be removed, so I gave him a copy of the receipt where I paid off the loan in full as proof incase he had issues down the road. He was happy with that. Not sure if this would work for your scenario but it was a painless process for me.

[Rocket1k78]

do you have a friend or family member that could loan you the money to pay off? its really low risk for them (unless your a shady person lo)

[E46..sTyLez]

Originally posted by Rocket1k78
do you have a friend or family member that could loan you the money to pay off? its really low risk for them (unless your a shady person lo)

Anyone on here is welcome to...:D

Yeah I suppose I could go that route if need be.

Thanks for the feedback guys

[mr2mike]

THIS.


Originally posted by lamp_shade_2000
when I sold my car, it was financed with TD as well, I met the buyer at a TD branch where he gave me the cheque, I deposited the money into my TD bank account, and paid the loan off directly with him there as proof. The bank did mention that a lein can take up to I think it was 90 days to be removed, so I gave him a copy of the receipt where I paid off the loan in full as proof incase he had issues down the road. He was happy with that. Not sure if this would work for your scenario but it was a painless process for me.

Also Get a contact at your branch before you go do this so they have the heads up.

[leftwing]

It is not you that will get ripped off, it will be the buyer if anything as there is a lien the vehicle; You could take the money and not pay off the lien.... Inter-provincial buying isn't an issue as banks operate nationally.

When I bought my truck it had a lien held by Ford Canada Financing. What I did was obtain the case number (the financing account number) from the seller, I called Ford Canada Financing and confirmed the amount still owing on the vehicle. That way I knew exactly how much to make a cheque for. If it is not correct to the exact cent they will reject the cheque, even if you give them more money that you owe. Once I knew how much was owed to Ford I made 2 cheques, one was to Ford Canada Financing with the case number in the memo line, and a second cheque to the seller. I received a letter stating my vehicle was lien free about 2 weeks after the purchase.

What you can do is just get the buyer to make one cheque out for the whole balance. Then you both go to your bank, deposit the cheque into your chequing account. When the teller deposits the cheque they can allocate XX amount to pay off the lien. They can print off a receipt for the buyer showing that your "Auto Loan Account" now has a balance of $0. The remainder of the cheque will stay in your chequing account. This should give the buyer peace of mind.

EDIT: If you both bank with TD he doesn't even need a cheque, you can both go to the branch together and they can transfer funds there.

[E46..sTyLez]

Originally posted by lamp_shade_2000
when I sold my car, it was financed with TD as well, I met the buyer at a TD branch where he gave me the cheque, I deposited the money into my TD bank account, and paid the loan off directly with him there as proof. The bank did mention that a lein can take up to I think it was 90 days to be removed, so I gave him a copy of the receipt where I paid off the loan in full as proof incase he had issues down the road. He was happy with that. Not sure if this would work for your scenario but it was a painless process for me.

I finally got on the phone with the right person at TD, and the above is exactly how we're going to do it. He is bringing a bank draft addressed to both myself, and TD Auto Finance. We are going into my branch together, paying off the loan, and depositing the balance into my chq account. The receipt provided for the loan payoff will be his proof.

Thanks for the comments guys
Cheers