Selling a car with payments remaining

[iggy_oi]

Wondering if anyone on CP has any advice regarding selling a car that I still have payments left on the loan for. I just recently got a vehicle from my employer so I no longer need my current car. It is more than half paid off but I'm wondering if there's anything I need to do as far as letting the bank know of my intention to sell it? Or does anyone know if dealerships are willing to take back cars in a situation like this so I don't need to go through the hassle of selling it myself?

Any advice would be much appreciated

[Erick Estrada]

The dealer isn't going to take your car back but they would happily accept it on a trade it in. They may buy it from you but they would likely offer you the low blue book value and depending on the model and depreciation it be a pretty bad deal for you. As far as private sale goes your loan has to be paid off before the lien can be removed and re-registered so if you don't want to lose money you need to at least sell it for what you have owing to come out clean.

[Canehdianman]

best case would be to pay it off yourself and get a letter from the finance company confirming you paid it.
Then you can sell it privately and lien-free.

[Weitz]

Find private buyer.
Go to bank.
Have buyer write cheque for remaining loan to bank.
Then have buyer give you the remaining money.

[btimbit]

Just sell it private like you would normally. Be honest about the lein when you meet with potential buyers. Get a statement showing how much is left owing and show it to buyers. If they want to be sure that it does get paid and clear, just have them write two cheques, one for the balance remaining and the rest to you. If they want, they can even go to the bank or finance company with you to prove that it's paid, and also get a copy of the letter that states it's clear. Plenty of ways to make it work out.

Trying to find a dealer to take it would be like throwing money right into the garbage

[FlamesKickAss]

Yea I sold a car that had a lien from Ford. Met the buyer at the dealership, he paid the portion owing cash and the remainder to me.

[Jason14h]

I bought a car with payments/dealership financing remaining

Got 1 certified check to the dealership for remaining amount, and 1 for the buyer with the remaining purchase balance.

We went to the dealership, and they took the payment, and witnessed a bill of sale for the vehicle for the 2 parties involved.

Drove over to the registry office and got it registered.

[llwhiteoutll]

Originally Posted by Erick Estrada

As far as private sale goes your loan has to be paid off before the lien can be removed and re-registered

Doesn't need to be lien free in order to register

[mrkajz44]

Originally Posted by Weitz

Find private buyer.
Go to bank.
Have buyer write cheque for remaining loan to bank.
Then have buyer give you the remaining money.

This is perfect advice. Just don't tell the buyer what the amount of the loan is upfront so they won't try and haggle price based on what you have left owing (because for some reason people think that has some sort of impact on the value of the car). After price is settled, tell them you need two amounts. Easy peasy.