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  Best Practices To Selling a  Financed Car

 

  by Khalid R. Mustaffa

 

§         You initially financed the car that you are about to sell. You now need to legally, and safely turn your car over.  If the lean has been released, and you are the sole owner of the car, then reading this article would be additional information that you may not need, rather pass onto friends and family.

 

§         If you still owe money on the car, then.

o       Contact the lending bank or dealer to discuss the best way to pay off or close out the loan

o       Inquire about the necessary requirements to obtain a lien release, or a statement stating that the remaining obligations on the car if any and if not also stating that it has been paid off.

§         If you find out that you pay more money than you can pay prior to selling the car

o       Consider mediator service that would facilitate payment to the lien holder.

§         If you are not able or not comfortable with the above mentioned methods

o       Consider closing the sale deal at the bank, credit union, or the dealership that holds the lien. Make sure you contact the lending entity prior to setting up such arrangement, and schedule and time and date.

§         The buyer can payoff the balance

§         Release the lien

§         Pay you the remaining agreed upon amount. 

§         If the lien holder is in a different state.

o       Obtain a bill of sale from the local department of motor vehicles

o       Obtain a temporary permit for the buyer to drive the car.

o       Once the loan is paid off, the buyer can then transfer the title ownership.

 

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