Vladds

SO I want to learn from you guys how so many seem to hop from one car to another.
So you finance, say a C63.
But now you want a Black series..
So you put up your C63 for sale.
But it has a lean on the title and the bank has to be paid. (I understand that some own the car outright and bought it with cash, that's a different story).
How do you sell it?
A dealer would buy it with cash and issue a lean release request to the bank and they're well versed in processing those overnight.

But I'm willing to bet that the potential buyers want to finance the car you're selling as well..
But now the banks don't want to finance a car that is privately owned, only dealer owned. How do you get past this?
Is there a site that facilitates the transaction?

skratch77

I had that problem selling my e55.i was asking 24k and banks would not loan out to buyers because of the age and price.
​​​​​​
i found a guy eventually with cash to buy it.

Jasonoff

Pick a dealer and do the paperwork through them for a small fee.

You sell to them, they sell to your buyer.

Yuille36

Basically they are using an auto broker.

Crya

iTrader: (1)

I've been in and out of cars every couple years here in CA. I've never heard of a bank refusing to finance a privately owned car. After all, the bank cares about its asset, not who they purchase it from. What I do know is banks have a limit on the age of the vehicle they will finance, which is 10 years or newer. So, if I want to flip my 09 in a year or two, then I'll have to face the reality that I'll be looking for a cash buyer or trade into a dealer/wholesaler bc a private buyer won't be able to get a loan.

Otherwise, it's not an issue if you have an outstanding balance on your loan. You just make the buyer aware up front that obviously title/lien release will take a few more business days because you're sending in money to pay off the loan, but the buyer takes comfort in a. trusting you're paying off the note, b. watching you physically mail the check to the payoff institution, or c. not worrying about it because they've got a bill of sale and the car and the keys...
I've encountered all of the above when selling/buying cars/bikes with liens. In fact, I remember this dude I bought a Harley from years ago, took him like 4 months to finish paying off the loan b/c I paid him less than he owed. That was probably stupid on my part but he came through...

Vladds

In other words, the buyer pays knowing that there's a lien, gets the title and certificate of sale and the seller takes the money and pays the bank, so that the bank issues the lien release, that the seller sends to the buyer.
The buyer has to have the confidence to issue payment against a liened car and trust that the buyer will use the money to pay and obtain the lien release from the bank and send that in.
And this us usually not a problem?

Crya

iTrader: (1)

You got it. Not problem at all, unless you've got a foil-hat wearing buyer. But if that's the case, all of this is easily documented. You print out your payoff amount, show that to buyer (AFTER YOU'VE NEGOTIATED). If they are paying "cash", then you have them give you a cashier's check for the exact payoff amount, made out to the bank, and the balance in a cashier's check to you. Then you show them putting it in the envelope or even better taking it to the bank, and paying it off.

Now, if your buyer is getting a loan to buy a car that you have a lien on, it's easy because then their bank will contact your bank to confirm payoff, send that amount without you ever seeing it, and provide the balance of the loan amount to you for the purchase.

SheryarYO

i bought my first car through a private party. financed it through my credit union. they gave me two checks. one to Bank of America who the previous owner had a loan through to pay off the remaining balance of their loan. the other check was in the seller's name for the remaining amount so he could do with it as he pleased.

Vladds

Makes sense. Tanks guys.

hachiroku

some banks have auto loan qualifiers...less than 10 years and less than 80 or 100k miles.

personal loans don't matter though. auto loans generally have lower interest rates.

Techniquest

I would always pick a dealer to do all the paperwork, and maybe I would even choose to sell the car though the dealer. That is exactly what I have done with my c63s coupe, to be honest, the car was not bad, but it was waaay worse than I actually thought it would be. After selling it through the dealership, I actually bought a new e class 63s, a saloon one. And that car, is actually amazing, and I would say even better than I expected. It was not a new car actually, it was the same situation as with my c class. I am not actually likely to buy new cars as they drop in price immediately, so I do prefer to look for some used Vehicle that have minimum mileage.

Jasonoff

BlakeDi

You have got a good point actually, thaat is the same reason why I do not buy new cars