Car Selling Process - TriStateTuners.com :: Home of Tristate Auto Enthusiast

03sLoMaX · 07-25-2006, 09:54 AM

I am thinking about selling my 03 Maxima but i have a few questions first. This is the first car i have ever had that is being financed. I signed it for a 5 year loan and have been paying the loan since feb 05. The payments are $400 a month. My question is if i sell it how will everything work? i dont even know if i would sell it back to the dealer or to a private party but would i be paid outright for the car so i could use the money to pay off the loan? and then would i just have to start all over again and get another loan for the car im looking in to? im really clueless to the whole thing so if anyone could give me some input and let me know what has to be done i would appreciate it.

thanks

doug

driftingeric2k4 · 07-25-2006, 10:30 AM

If you have a loan on the car from a bank your title will state that it has a Lien on it. (On lien recorded). In order to pass on the title to the next person you are responsible for clearing that lien.

An example:

If you owe 10 000 on the vehicle, and you get 8 000 dollars from a private party, the remaining 2 000 would be your responsibility to pay back, unless you work that out with the buyer. Most private party sales will want a clean title with no liens recorded, so you can expect any buyer to want you to have the lien removed.

If you are selling it to a dealership as part of a trade, the amount you owe - the negative equity - is rolled into the purchase price of the vehicle you are trading for.

so in the example above, if you are purchasing a 15 000 dollar vehicle with a trade in value on your vehicle of 8 000, the sale price will be 11 000 (Sale price - trade in + negative equity) that you would finance. In effect, the dealer then pays off your trade. Negative equity is how people get in trouble in a hurry.

There are various DMV forms that need to be filled out as well when selling via private party, including a tax form (the buyer still has to pay tax).

Hope that helps. Any corrections anyone wants to add go for it, but that is the gist of it. No one wants a title with a lien on it, becase that means, technically the bank or lienholder still owns the vehicle.

You may also find buyers willing to take over payments. That I cannot help you with and would only advise you to do that with family.

03sLoMaX · 07-25-2006, 10:34 AM

thanks...the car im looking at is a private property sale so its not something i could trade my car in to the dealer towards

bluengoldsti · 07-25-2006, 01:16 PM

correct me if im wrong, but if you owe $10000 on the car and the dealer is going to give you $8000 to trade it in, that leaves you with $2000 (negative equity) left to pay the finance company. this is regardless if you are buying a new car or not. so, you would need to pay the $2000 to the finance company to pay off the car PLUS $15000 for the new car.

$15000 (new car) + $10000 (loan) - $8000 (trade in) = $17000

the only way a trade in is worth it is if you dont owe anything (or very little) for the current car.

driftingeric2k4 · 07-25-2006, 02:08 PM

Quote:

Originally Posted by bluengoldsti

correct me if im wrong, but if you owe $10000 on the car and the dealer is going to give you $8000 to trade it in, that leaves you with $2000 (negative equity) left to pay the finance company. this is regardless if you are buying a new car or not. so, you would need to pay the $2000 to the finance company to pay off the car PLUS $15000 for the new car.

$15000 (new car) + $10000 (loan) - $8000 (trade in) = $17000

the only way a trade in is worth it is if you dont owe anything (or very little) for the current car.

Bah. No one said my math was good

You are correct. (Dang it)

03sLoMaX · 07-25-2006, 01:21 PM

i owe around 11k on the car...i could probably get somewhat close to that..so IF it washed out evenly then i would just be left with the price of the new car...the car im looking at is only $7000...if i couldnt get $11 i wouldnt expect to lose much more then $1000 on it...

bluengoldsti · 07-25-2006, 01:25 PM

thats right. the only problem is getting the money to pay off the maxima to remove the lien and get the title before selling it to a private party. im not too sure how that all works.

03sLoMaX · 07-25-2006, 08:58 PM

bump...anyone else have any info...i need to sell my car asap

Scapegoat · 07-25-2006, 09:26 PM

Quote:

Originally Posted by 03sLoMaX

bump...anyone else have any info...i need to sell my car asap

ebay.com

07-25-2006, 09:54 AM	#1
03sLoMaX Tri-State Aficionado Join Date: Nov 2005 Location: Hamilton NJ Member #1098 iTrader: (0)	Car Selling Process I am thinking about selling my 03 Maxima but i have a few questions first. This is the first car i have ever had that is being financed. I signed it for a 5 year loan and have been paying the loan since feb 05. The payments are $400 a month. My question is if i sell it how will everything work? i dont even know if i would sell it back to the dealer or to a private party but would i be paid outright for the car so i could use the money to pay off the loan? and then would i just have to start all over again and get another loan for the car im looking in to? im really clueless to the whole thing so if anyone could give me some input and let me know what has to be done i would appreciate it. thanks doug

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07-25-2006, 10:30 AM	#2
driftingeric2k4 Tri-State Aficionado Join Date: Jun 2006 Location: Canton, NY Member #2026 My Ride: 2000 Ford Mustang GT/C iTrader: (0)	If you have a loan on the car from a bank your title will state that it has a Lien on it. (On lien recorded). In order to pass on the title to the next person you are responsible for clearing that lien. An example: If you owe 10 000 on the vehicle, and you get 8 000 dollars from a private party, the remaining 2 000 would be your responsibility to pay back, unless you work that out with the buyer. Most private party sales will want a clean title with no liens recorded, so you can expect any buyer to want you to have the lien removed. If you are selling it to a dealership as part of a trade, the amount you owe - the negative equity - is rolled into the purchase price of the vehicle you are trading for. so in the example above, if you are purchasing a 15 000 dollar vehicle with a trade in value on your vehicle of 8 000, the sale price will be 11 000 (Sale price - trade in + negative equity) that you would finance. In effect, the dealer then pays off your trade. Negative equity is how people get in trouble in a hurry. There are various DMV forms that need to be filled out as well when selling via private party, including a tax form (the buyer still has to pay tax). Hope that helps. Any corrections anyone wants to add go for it, but that is the gist of it. No one wants a title with a lien on it, becase that means, technically the bank or lienholder still owns the vehicle. You may also find buyers willing to take over payments. That I cannot help you with and would only advise you to do that with family.

07-25-2006, 10:34 AM	#3
03sLoMaX Tri-State Aficionado Join Date: Nov 2005 Location: Hamilton NJ Member #1098 iTrader: (0)	thanks...the car im looking at is a private property sale so its not something i could trade my car in to the dealer towards

07-25-2006, 01:16 PM	#4
bluengoldsti Tri-State Aficionado Join Date: Oct 2005 Location: Langhorne, PA Member #969 My Ride: 2005 Subaru STi / 2006 and 2008 Suzuki GSXR600, 2010 KTM SMC 690 iTrader: (0)	correct me if im wrong, but if you owe $10000 on the car and the dealer is going to give you $8000 to trade it in, that leaves you with $2000 (negative equity) left to pay the finance company. this is regardless if you are buying a new car or not. so, you would need to pay the $2000 to the finance company to pay off the car PLUS $15000 for the new car. $15000 (new car) + $10000 (loan) - $8000 (trade in) = $17000 the only way a trade in is worth it is if you dont owe anything (or very little) for the current car.

07-25-2006, 01:21 PM	#6
03sLoMaX Tri-State Aficionado Join Date: Nov 2005 Location: Hamilton NJ Member #1098 iTrader: (0)	i owe around 11k on the car...i could probably get somewhat close to that..so IF it washed out evenly then i would just be left with the price of the new car...the car im looking at is only $7000...if i couldnt get $11 i wouldnt expect to lose much more then $1000 on it...

07-25-2006, 01:25 PM	#7
bluengoldsti Tri-State Aficionado Join Date: Oct 2005 Location: Langhorne, PA Member #969 My Ride: 2005 Subaru STi / 2006 and 2008 Suzuki GSXR600, 2010 KTM SMC 690 iTrader: (0)	thats right. the only problem is getting the money to pay off the maxima to remove the lien and get the title before selling it to a private party. im not too sure how that all works.

07-25-2006, 08:58 PM	#8
03sLoMaX Tri-State Aficionado Join Date: Nov 2005 Location: Hamilton NJ Member #1098 iTrader: (0)	bump...anyone else have any info...i need to sell my car asap