Ever sold a car you still owe on?

[PolyAddict]

My neighbor is interested in buying my Honda Pilot. I love the car but need to get DD17 a car also before she goes to college. I owe less than it is worth and would only sell it if i could pay it off and put some change in my pocket to buy 2 new ones. Two much cheaper cars, that is. My note is $650 a month for the $30+ vehicle so i figured two 13-15k cars and the note would be similiar.

How does one go about selling a car they don't own outright?

Any advice would be appreciated.

 

[deerhart]

You would have to sign the title and have the buyer sign the title, then pay off the lien in order for the new owner to retitle the car (in most states). Also, the new owner may or may not have to pay sales tax when they go to title the car (again depending on the state) so you will probably also need a written bill of sale.

 

[seashoreCM]

You can inquire of the lender or financier about the buyer's "taking over the payments". (This doesn't work in all states.)

Is there any way DD can get by without a car? At 17 and for a few more years she and/or you will pay much more for insurance.

And, will selling your present car yield up enough to make down payments on two replacement cars?

 

[meriface11]

we had to do this with the last car we sold. once we had a buyer, we paid off the loan in full and they sent us the title. then we were free and clear to actually sell the car.

 

[here757]

yes and it was the stupidest thing i ever did..

first of all cant sell anything that you do not have clear title on..( thanks judge joe brown ) lol

my personal experience.

i had sold the car. owed like 2 g on it. didnt have the funds to pay it.

the girl was making payments to me. and then i would forward to leinholder.

the girl totaled the car.. which put me in line for liability. because if there is a lawsuit.. they go after the driver. then the owner.. and that was me.
i had signed a bill of sale. which of course got lost..
and she would not have produced hers. i got lucky no law suit ever filed

then after it was wrecked she tried to not pay the balance.
i had to plead to her ex father in law.. he paid me

i will never do again

 

[cglaura]

If you know the person well enough, this is what I did. Back when I was having major financial woes (way long thread for way other topic! ex's, oooy) I had gotten a note on a car as it was my only option, ex drained my accounts, car died, perfect storm of financial disaster so to speak. Then it turned out my income cut in half and I couldn't keep up, so my friend was in need of a car, I lucked out. It was only 2 years old.

My friend bought my Honda Civic. What they did was right a check directly to Honda for the balance owed (call the lein holder and get a payoff). When I received all the title work from Honda then we did the signing, and also a one page auto purchase agreement, which you can get free, check google.

After they registered the car (they had to pay taxes on the purchase price) then I cancelled my insurance.

I had full coverage at the time though, so if they were in a accident the car would have been covered, as I didn't owe more than it's value.

Of course, this scenario would need alot of trust on both sides.

 

[Zoesmama03]

Honda's do have nice resale but it may be tough to sell it for enough to pay it off and get 2 cars but right now people are trying to get decent cars this way. You could get a personal loan from bank or credit union pay off the car loan and sell the car to neighbor(or whoever if they don't come through) pay back the personal loan and anything left you could use for the cars.