Question re: still-financed car sale (random)
When I sold my previous car, I just signed the title over to the buyer, but since I don't actually hold the title (the lender does), I don't seem to have any means of doing this.
So, does anyone have any experience with selling a car which is still being financed? Or should I look into some way of paying off the loan before trying to sell the car? (I already know that refinancing isn't an option since there's less than $7500 left on the loan...)
(Also, I don't need a lecture about the evil of loans and buying new cars and so on. I've always overpaid on my loan payments, and didn't expect to be selling the car this soon. And hey, I've still come out ahead compared to leasing or trying to maintain my previous car until it croaks, which it probably would have done by now anyway.)
Comments
But selling a manual-transmission car in NYC is probably not going to be terribly easy.
Hmf.
If you've financed through a non-local institution, well then you've got to deal with the mail, etc. Give them a call, find out what the payoff amount is for a specific date in the future - not for today as it's unlikely they'll receive your payment today. Ask what the "per diem interest charge" is (this is the amount of interest that accrues on the unpaid principal balance daily), what their payoff requirements are (certified check, money order, etc.) and exactly where the payment should be sent. Ask if they need any information from you: the buyer's address for mailing the title, perhaps? Send the payment via overnight delivery - or USPS express mail - just make sure you get delivery confirmation. If received before certain time (usually 2 or 3 pm) banks are required to post the payment on they day the funds are received. If not, they can delay posting till the next day which could cost you and extra day's worth of interest. The posting time should be spelled out in your loan contract. With the payment include one day's worth of interest accrual (the per diem) for each day you expect the funds to be in transit. It's better to pay too much and have the finance company refund you the difference than to pay too little which only slows the process down. No self-respecting banker is going to release their lien on a car until their loan is paid in full. I've had the unfortunate pleasure to work with some bankers lacking in self-respect and have seen this happen, but professional institutions wouldn't dream of it.
If you're a member of AAA (or if the buyer is) they might be able to help you with the transaction - it wouldn't hurt to call. Hope this helps.
2002 Toyota Echo.
Holy cow.
The institution is non-local (Toyota's own financing had the best deal at the time, oddly enough) but that process still seems to rely on the goodwill of the buyer and knowing a lot of stuff ahead of time. I don't even know if I'll be selling my car yet!
I think the drive-to-New-York-and-sell-it-there idea is looking better. Though then there might be some really odd tax crap going on. Argh.
The other idea I had was to use a 0% APR cash advance from my credit card to pay off the loan (which would cost like $50 in finance charges), sell the car normally, and then pay the credit card back off. I was hoping to avoid getting that credit card involved, but it seems like it just might be the least-crappy way.