How do you sell a car you don't own? (Lien holder has title) - Pontiac Solstice Forum

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Old 08-29-2006, 12:02 PM   #1 (permalink)
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How do you sell a car you don't own? (Lien holder has title)

Ok, so I've only ever sold a car I had the title for. This is the first time I've ever tried to sell a car I didn't have paid off completely. So in other words I have a loan out still I owe money on and the lien holder has the title still.

I called the lien holder and they said once I paid off the loan they'd electronically transfer the title to the DMV. The DMV said though they needed to request the Title prior to transfer to get info from it which they can do if I provide the lien holder info.

I did some reading online and a lot of it seems dependent on what the buyer is willing to do. Like if they demand the Title be present to purchase or if they're willing to wait.

Looking for suggestions from those of you who have tackled this issue before...
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Old 08-29-2006, 12:18 PM   #2 (permalink)
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Every state handles titling issues differently. The easiest method to handle the transaction to allay a buyers fears is to use a tag service company. Many dealers use them to do the "running" for new and used dealerships. Let them handle the titling issues as an impartial third party! Or, put the buyer on the phone with the lien holder at let THEM explain it to the buyer. It really is a simple process - buyer makes out a check for the net balance owed and sends it to the lien holder. The rest is simply fixed in place based on your state's laws and what the lien holder does. Any money over the payoff is a separate check to you. DO NOT TAKE A PERSONEL CHECK. But you probably know that. Certified funds or bank transfers only, so you won't get "hustled". It happens.

Are you selling the Sol that hauls the trailer we all want? If so, what are you replacing it with?
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Old 08-29-2006, 12:51 PM   #3 (permalink)
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I have a hard enough time understanding the people on the phone from the Lien holder. Their phone service is outsourced to a far away place.

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Are you selling the Sol that hauls the trailer we all want? If so, what are you replacing it with?
A GXP.
It'll haul the trailer and tires to events since I never actually got to use it on my base Solstice.
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Old 08-29-2006, 01:02 PM   #4 (permalink)
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It can be slightly tricky, but i had no prob doing it when i sold my civic.

the primary piece of paper is the Bill of sale - this is what makes the buyer secure they own the car when they drive away. IOW, they have the vehicle in possesion, and a bill of sale.

Now of course, the lein holder would still have an interest in the car UNTIL they are paid in full. That makes some buyers nervous that you will actually pay the bank.

It's easiest to pay the lienholder first, but not always possible.
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Old 08-29-2006, 01:06 PM   #5 (permalink)
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I could always pay the lien holder with a CC or some sort of other loan to get the Title if that's what the buyer really wants. It's just that whole fear of them backing out after doing that with the rest of the car loan sitting on a higher interest loan/CC.

The add I did with cars.com also got me a Bill of Sale template I printed out. It needs to be notarized though, so I should look into who can do notary type stuff as well I guess.
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Old 08-29-2006, 01:18 PM   #6 (permalink)
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I wouldn't pay it off unless i had the money lying around - you're correct to worry buyer could back out.

I wanna add, when I bught my solstice - it was private party. I would not trust anyone enough to write the cashiers check to them, and trust they would actually pay off the lien. In this case, the lien was with Bank of America. So, I went with the seller to BA, wrote the check to BA, and watched the seller hand it to a BA representative as a patyment to the account for which I KNEW for a fact was the loan on the solstice held by the seller. I was thoroughly satisfied with the way I handled that transaction. can you do that type of arrangment with your buyer and bank????

when I sold the civic, the person just wrote the cashies check to me, and trusted that this is how it works (I knew much more about the process than they did). But they were kind of exposed doing it tht way. I however was not exposed at all as I had the money.

Couple of more things:

remember FOR sure to get a release of liablity, and get ti to the DMV real quick (CA has a 10 day requirement, and BE SURE TO KEEP a copy - I've heard some horror stories - keep it FOREVER in a vdry safe place I was warned by AAA.

Cashiers checks etc, are easily forged now - but also easily verified by banks - be sure to verify it at teh bank BEFORE releasing the keys. I sold the MSM like this ( I held the title on that one - so title wasn't the issue).

Note: when I did all three transactions, they were all closed at the bank (either so I could verify my payment of funds went to the lien - or to verify the cashiers check from the buyer).

Best of luck, hope that helps!
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Old 08-29-2006, 01:38 PM   #7 (permalink)
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Quote:
Originally Posted by brentil View Post
I could always pay the lien holder with a CC or some sort of other loan to get the Title if that's what the buyer really wants. It's just that whole fear of them backing out after doing that with the rest of the car loan sitting on a higher interest loan/CC.

The add I did with cars.com also got me a Bill of Sale template I printed out. It needs to be notarized though, so I should look into who can do notary type stuff as well I guess.
Hi Brentil,
I've done it with intra-state implications in Florida and found that it's a good state to do it in. They are helpful and there are notaries within every ten feet of a Fl. registry office, they'll even point you to one.
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Old 08-29-2006, 04:23 PM   #8 (permalink)
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My problem is I went with a GM loan and they sold my loan out to HSBC, an entirely online bank with no branches...

So I can't walk into a branch office and complete the transaction. I either have to pay it off early or they buyer has to be trusting enough. I can do a bill of sale with them and get it notarized. I'll have to take some more time off and go to the DMV in person and try to get a solid answer out of them on what my options are. I tried calling and they weren't really helpful over the phone at all, and HSBC was useless.
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Old 08-29-2006, 04:36 PM   #9 (permalink)
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You still are not going to be able to produce a 'clean' title in an instant when you pay off HSBC. I know states differ but here is what happens in the snowbelt. When a car is purchased new there is not a title until the dealer sends in the paperwork to the state, which issues the title. If the lienholder requires (most do) the title itself is sent to the lienholder, in your case first GMAC, and then HSBC ( or GMAC may have held it and just sold the servicing of it.)

When the lien is paid off and certification is made to the state the title will one day show up in your mailbox. It will have been sent from GMAC (or HSBC) to the state and then to you.

If I were doing what you are doing here teh first thing I would have done is involve the dealer you are getting the GXP from so that it would show as a trade (here tax is paid only on difference) and they would for $90 walk you and new owner of your first Sol through all the paperwork, issuing a new temp plate and all paperwork and handling the loan payoff for you.

Or for about the same money any license notary would do the same. At some point you will have to involve someone with a fabcy title in order to procure a title. Signed paperwork and the excahnge of small checks takes the jitters away.
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Old 08-29-2006, 10:08 PM   #10 (permalink)
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If the storm coming my way tomorrow isn't too bad I'll go to the dealership and talk to them about this.
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Old 08-30-2006, 06:04 AM   #11 (permalink)
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we just sold our daughters Saturn...she went to work internationally and left us her car....titled in DE..financed through GMAC....again depending on what the buyer wants to do...ours was from VA Bch VA....she made out a cashiers check for the remainder of the loan to GMAC....we Fedex'd to the GMAC.....had a notary do a bill of sale so she could drive the car off the day we mailed the check......she converted to her insurance as we listened to her make the call....the title came to us....we endorsed with a power of attorney and fowarded it to the lady in VA Bch...took about two weeks total...no problems..all were happy....
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