Selling a vehicle with remaining financing

[schurchill39]

I recently got a pick up truck through work and am thinking about selling my personal truck that I have some financing remaining to the dealer. In the past any time I've bought or sold a vehicle that had money owing on it I've met the buyer / seller at the bank to pay off the remaining amount, get a letter saying it's free and clear then made the transaction for the remaining amount. I'm a little confused how I should go about this with a vehicle that has financing through a dealer and thus the credit department isn't a brick and mortar place I could meet the buyer at. I spoke with someone at the finance department of the dealer and they said it could take up to two weeks for the credit department to process the payment and give a lien release letter.

As a buyer of a vehicle that has dealer financing still on it, what would make you the most comfortable in buying a vehicle with confidence that everything has been taken care of and it's free and clear? Or would this stear you clear of buying that particular vehicle? I'm just weighing my options with what I should do

[bjstare]

I'd likely make a call after meeting you. I'd not be happy about it, but if you met me at your house and seemed like a decent guy I might take the chance at buying without a release on the spot. I've never done this before, but I'd consider it.

However if you live in the NE or SE, all bets are off.

[Twin_Cam_Turbo]

I buy vehicles with remaining lease/finance payouts to both banks and dealers a few times a week. What I do is have two bank drafts, one for the lien payout and one for the remaining balance. I go to the bank/dealer with the seller and personally hand over the money. I always call beforehand to confirm everything the seller tells me lines up, such as remaining balance, name on the lien, what institution the lien is through etc. I also run a lien check to confirm the sellers name/address/DOB etc lines up with the VIN and who the lien is held with. Normally even if I get a hand written receipt from the dealer/bank that they received payment from me, that's good enough to prove to the registry the lien has been paid out.

On the bill of sale I always write the terms, "all liens to be paid out at time of sale" and have the seller initial that statement. It's also good to write "seller gauruntees to be legal owner at time of sale" and have them initial that.

Those are my tips for dealing with it properly.

[schurchill39]

I buy vehicles with remaining lease/finance payouts to both banks and dealers a few times a week. What I do is have two bank drafts, one for the lien payout and one for the remaining balance. I go to the bank/dealer with the seller and personally hand over the money. I always call beforehand to confirm everything the seller tells me lines up, such as remaining balance, name on the lien, what institution the lien is through etc. I also run a lien check to confirm the sellers name/address/DOB etc lines up with the VIN and who the lien is held with. Normally even if I get a hand written receipt from the dealer/bank that they received payment from me, that's good enough to prove to the registry the lien has been paid out.

On the bill of sale I always write the terms, "all liens to be paid out at time of sale" and have the seller initial that statement. It's also good to write "seller gauruntees to be legal owner at time of sale" and have them initial that.

Those are my tips for dealing with it properly.

Perfect this is exactly what I was looking for and lines up with what I was thinking. With a bank draft for the balance owing to the dealer (as confirmed by the dealer) and meeting at the dealer itself to hand it over so there is not only a paper trail but confirmed that everything I've told you as a seller is correct. It sounds like its pretty much the same process as I would do to buy/sell when a vehicle has a bank loan against it but jut facilitated through the dealers channels.

I'm not sure if I'm going to sell my truck because its in way way better condition than the work truck and I'm a bit of a brand loyalist but at the end of the day a "free" truck is a "free" truck (minus personal km and all that other bs).

[swak]

I bought a car from a guy who had a lease on the car through a local dealership. A little unconventional, but I took a picture of the bank draft, seller went to the dealer that day and I was able to call the finance mgr who confirmed the vin#/bike was paid off.
Brought the check to the seller, he paid off his credit card I assume and walked away with the car.

There's ways around it, but theres always some sort of risk/trust with this on either end doing this.

[max_boost]

I buy vehicles with remaining lease/finance payouts to both banks and dealers a few times a week. What I do is have two bank drafts, one for the lien payout and one for the remaining balance. I go to the bank/dealer with the seller and personally hand over the money. I always call beforehand to confirm everything the seller tells me lines up, such as remaining balance, name on the lien, what institution the lien is through etc. I also run a lien check to confirm the sellers name/address/DOB etc lines up with the VIN and who the lien is held with. Normally even if I get a hand written receipt from the dealer/bank that they received payment from me, that's good enough to prove to the registry the lien has been paid out.

On the bill of sale I always write the terms, "all liens to be paid out at time of sale" and have the seller initial that statement. It's also good to write "seller gauruntees to be legal owner at time of sale" and have them initial that.

Those are my tips for dealing with it properly.

Yup. Have done it like this many times in the past.

[J-hop]

Kinda related. Anyone see on Calgary cars swap and shop the mazdaspeed 3 "for sale"

Guys name is Scott garcia, car has a laundry list of mods but get this.

Guy wants you to take over the financing (@540/mo right now) with 5 years remaining and a little under $20k left. If you read through the comments he paid 17200 for the Mazda and had 5k on top of that owing from his previous car. So you are paying for the car and his debt.....

I don't think anyone will be dumb enough to bite but wow people are assholes.