Upside Down!Help!
Thread Starter
Newbie
Joined: Feb 2002
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From: New Orleans, LA
Upside Down!Help!
I'm looking to lease a C230K, but I'm currently upside down on my trade. I owe about 27,000, but the dealer will give me only 25,000 for it. If I choose to sell it privately, it will probably be for less than what I owe, but will still be significantly more than what the dealer will give me. My question is if I sold it for less than what I owe, and cover the difference myself, how would I process this transaction with regards to the bank? Would they take the money from him, plus my part, then issue the title? Thanks for your help.
Member
Joined: Nov 2001
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From: Albany NY
99 ml320, 2002 C230K
The bank doesn't care where the comey comes from, as long as they get their payoff amount (in certified checks) then they'll give you the title.
BTW, your tag line doesn't list your location. In some states, the sales tax is calculated on the sale price of the car minus your trade, so if the car is 30k and your trade is in 25k, you may have to pay sales tax only on 5k, which at 6% is $1500 less tax that you'd have to pay. Thus, you could take a trade in that $1,500 less than you'd sell it for privately and be in exactly the same place financially.
BTW, your tag line doesn't list your location. In some states, the sales tax is calculated on the sale price of the car minus your trade, so if the car is 30k and your trade is in 25k, you may have to pay sales tax only on 5k, which at 6% is $1500 less tax that you'd have to pay. Thus, you could take a trade in that $1,500 less than you'd sell it for privately and be in exactly the same place financially.
MBWorld Fanatic!
Joined: Nov 2001
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From: Sri Lanka
I did wonder about the process i would have to go through to sell my car... normally how long will the buyer have to wait till they can get the title... I suppose it will take a few days... so till then does the car stay with me or do I take his money and let the person take my car...
just wondering.. any advice will be appreciated
just wondering.. any advice will be appreciated
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Joined: Nov 2001
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From: Earth
GLB 250 4matic
when i sold my car, i took cash... we drove to a local AAA that handled the title transfer. after that, it was good luck and bye bye.
most of the onus was on the buyer. proof of insurance, licence, fees, taxes, etc. of course, all that was made clear before so no suprises.
it was under $10k. if it was more, i'd have taken a bank check/cashier's check.
in philly. actually, for leases, you pay more tax - 9% vs 6% sales tax.
most of the onus was on the buyer. proof of insurance, licence, fees, taxes, etc. of course, all that was made clear before so no suprises.
it was under $10k. if it was more, i'd have taken a bank check/cashier's check.
in philly. actually, for leases, you pay more tax - 9% vs 6% sales tax.
Last edited by young; Mar 10, 2002 at 10:27 PM.
Thread Starter
Newbie
Joined: Feb 2002
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From: New Orleans, LA
Originally posted by Bud
BTW, your tag line doesn't list your location. In some states, the sales tax is calculated on the sale price of the car minus your trade, so if the car is 30k and your trade is in 25k, you may have to pay sales tax only on 5k, which at 6% is $1500 less tax that you'd have to pay. Thus, you could take a trade in that $1,500 less than you'd sell it for privately and be in exactly the same place financially.
BTW, your tag line doesn't list your location. In some states, the sales tax is calculated on the sale price of the car minus your trade, so if the car is 30k and your trade is in 25k, you may have to pay sales tax only on 5k, which at 6% is $1500 less tax that you'd have to pay. Thus, you could take a trade in that $1,500 less than you'd sell it for privately and be in exactly the same place financially.
Out Of Control!!
Joined: Dec 2001
Posts: 12,161
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From: Obama Land
K Car
Re: Upside Down!Help!
Originally posted by crazyfool
I'm looking to lease a C230K, but I'm currently upside down on my trade. I owe about 27,000, but the dealer will give me only 25,000 for it. If I choose to sell it privately, it will probably be for less than what I owe, but will still be significantly more than what the dealer will give me. My question is if I sold it for less than what I owe, and cover the difference myself, how would I process this transaction with regards to the bank? Would they take the money from him, plus my part, then issue the title? Thanks for your help.
I'm looking to lease a C230K, but I'm currently upside down on my trade. I owe about 27,000, but the dealer will give me only 25,000 for it. If I choose to sell it privately, it will probably be for less than what I owe, but will still be significantly more than what the dealer will give me. My question is if I sold it for less than what I owe, and cover the difference myself, how would I process this transaction with regards to the bank? Would they take the money from him, plus my part, then issue the title? Thanks for your help.
Super Member
Joined: Nov 2001
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From: Orlando, FL
2002 Mercedes-Benz C230 Kompressor Sports Coupe
Re: Upside Down!Help!
Originally posted by crazyfool
I'm looking to lease a C230K, but I'm currently upside down on my trade. I owe about 27,000, but the dealer will give me only 25,000 for it. If I choose to sell it privately, it will probably be for less than what I owe, but will still be significantly more than what the dealer will give me. My question is if I sold it for less than what I owe, and cover the difference myself, how would I process this transaction with regards to the bank? Would they take the money from him, plus my part, then issue the title? Thanks for your help.
I'm looking to lease a C230K, but I'm currently upside down on my trade. I owe about 27,000, but the dealer will give me only 25,000 for it. If I choose to sell it privately, it will probably be for less than what I owe, but will still be significantly more than what the dealer will give me. My question is if I sold it for less than what I owe, and cover the difference myself, how would I process this transaction with regards to the bank? Would they take the money from him, plus my part, then issue the title? Thanks for your help.
Then you deposit his check and mail your bank a check for payoff amount. Or if you want, write a check for the difference and sign-over the certified check to your bank. Either way works. The bank will mail you the title, which you can forward to the buyer. Or, if you want, bank will mail title to the new buyer/bank. Again, they are usually cool with it either way.
If the buyer as so-so credit, their bank may ask to write a check directly to your bank, so they get the title directly (meaning they don't trust their own customer). That's ok, just make sure they are aware that the sale will NOT be completed (you won't give the car away) until the payment arrives at your bank. Then you can pay off the difference yourself.
