I'm selling my car i owe 7k on to someone, how do I handle the selling process so I can purchase another car?
I'm selling a car I owe 7k on that I don't like but someone is willing to take over payments of the car so now I can buy a car that I want. How to I handle the paper process and do I need to get the banks involved
- jimanddottaylorLv 74 months agoFavorite Answer
You need this someone who is buying your car to pay off the loan from the bank.. Then you are off the hook. The bank will release the title and that someone can pay whoever they got the money from. It might be the same bank as you dealt with or a different one.
- oklatomLv 74 months ago
Sorry, but you can not allow someone just to "take over your payments" because you will remain as owner and the one with the loan, so if a payment is not made you are responsible.
Also if there is a red light ticket or parking ticket it is your responsibility. You would have to keep insurance on the vehicle and be responsible for the registration, and insurance may not cover an accident if someone else becomes the main driver and is not named on the insurance policy.
Have whomever wants to buy it to get a loan and becomes the registered owner so your name is removed.
- Anonymous4 months ago
no taking over payments. Buyer must pay off your loan and get their own.
- JetDocLv 74 months ago
You CAN'T sell a car to someone to "take over payments." Your bank won't allow that. The buyer will have to have his credit approved to refinance the loan with your bank, OR come up with his own financing to pay off what you owe on the car.
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- ScottLv 64 months ago
You cannot let someone take over your payments. It's against the law and a huge risk to you. Until your existing loan is paid off, you do not have the right to sell, trade or transfer the vehicle to a 3rd party. You will still be responsible for the loan and the car. There is no incentive for the "buyer" to make the loan payments because the loan isn't in their name. It's your credit that takes the hit and gets ruined. They can't insure the car, which means you will have to continue to insure it, while they expose you to all sorts of liability. Bad idea - don't do it.
- artherLv 44 months ago
wont you need to pay out the loan before you can sell it?
so the buyer takes you to the bank you pay out the loan give him the title and he pays you the remaining amount. Tell the bank and the buyer this is going to happen.
- Anonymous4 months ago
Take over payments? Sorry, but it doesn't work that way. Whoever buys the car must get their own loan and then their lender pays off your lender. Here's the rub. If you owe more than the car Is currently worth then they aren't going to be able to get a loan for that much. Somebody [either you or the buyer] will have to come up with the difference in cash. A logical and intelligent buyer won't do that unless they really want the car bad and are willing to pay more than it's worth. Otherwise the money is going to come out of your pocket.
- G. WhilikersLv 74 months ago
You definitely need to get your bank involved, because they won't do a take-over-payments deal without approving the buyer's credit. IF they would do that; it's more likely the buyer will have to arrange his own financing. You also need to get completely out of the old car so you don't get blamed for irresponsible things the buyer might do.
Start by calling your lender to find out what they require from you and the buyer.