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question ab0ut selling a used car-

kuba

TRIBE Member
here's my question

if you own a car, and you owe $10K on it, and you sell it, for, let's say $14K,

how do you pay off the company you owe the money to (in my case, vw) and keep the $4k?

how does selling a used car w/ a lien work? (selling privately)
 

I_bRAD

TRIBE Member
VW will want their money before they release the lein on it... so the buyer will have to trust you that you'll pay it off. One way I've done it in the past is to get the buyer to give you two cheques- one made out to VW for the amount outstanding, and another to you with the balance.

For the buyer's piece of mind, it doesn't hurt to get a letter from VW finance indicating the amount outstanding, and that the lein will be released upon payment.

You decided on your brother's car?
 

the_fornicator

TRIBE Member
Re: question abotu selling a used car-

Originally posted by kuba
here's my question

if you own a car, and you owe $10K on it, and you sell it, for, let's say $14K,

how do you pay off the company you owe the money to (in my case, vw) and keep the $4k?

how does selling a used car w/ a lien work? (selling privately)
not too sure about this, but if there's a lien on a car (i.e. you owe money), the person can get a loan on the car and then they would also have a lien on the car as well from their financial provider on the condition that there's a bill of sale. In other words, the buyer gets the loan approved from his/her financial provider.

from there I assume that the person hands you a cashier's cheque (or whatever form of payment) and you do what you will with it. if you sell it for $14K, you keep $4K. i.e. deposit cheque in your bank and you can get a cashier's cheque for $10K and pay off the company you owe money too and have $4K left over for whatever.

at this point in time the deal is done on your end.

from the buyer's side, I think the buyer now has to provide proof of registration for that ticket to have the deal finalized otherwise the bank will ask for its money back. Not too sure what would happen though if the buyer didn't plan on registering the car.

did I say anything useful? heh/
 

DoubleDown

TRIBE Member
Having been in this position (at work) many many times the only problem I see with that plan (although it is a solid one) is once the buyer knows your payout and then knows how much you are making on him... it could make the whole deal go sour.

Something I unfortunately have to tell people a lot of the time is "Sir, your payout as nothing to do with your cars value" Which is true considering the car is a depreciating asset. If your buyer see's things along those lines... then writing a check to you for $4,000 may be a hard pill to swallow. ALTHOUGH..... none of this is relevant if you had put money down when you bought the car. In which case you could actually owe less than what your car is really worth. But I find those situations are few and far between these days.

I'll think this over for a few..... give me a call later if you want.

Oh and I got your PM late late last night, and my answer is... I'm not sure.... I'll have to ask Pia as she is the one who found the sites we used. I'll talk to her tonight though... I'll ask her... drop me another pm or gime a call...
 
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