How can I sell my used 2005 car without the tile to my friend who is short on cash?
I just bought a newer used car from 2005 at the toyota dealer and I got the loan through them. I bought the car for $12,800 total with taxes and I put $2,000 dollars down when I bought it. So now I owe about $11,000 on it. I would like to sell it to a friend for $12,000 and make back about a $1,000 on it. This way I’ll only end up loosing the $800. He doesn’t have enough money so he would have to take out a loan from somewhere himself, but I think he has good credit.
Anyway, the problem is that I don’t have the title since the car isn’t paid off yet and I owe the dealer money, not a bank, since the loan was taken out through them. What are the steps I have to take to sell this car to my friend who is also short on cash himself, but still has good credit?
Also, how hard would it be to sell this car to a stranger if my friend decides to back out of it since I don’t have the title?
What about selling it to CarMAX? I heard that they take care of all the financial mumbojumbo for you.
July 9th, 2010 at 5:52 am
You are just about to find yourself in a universe of hurt. I can plainly see it coming.
First of all, it isn’t legal unless the financier has agreed to transfer the loan into the other person’s name, and that is the only legitimate way to do it.
Otherwise, your friend could get you in all kinds of trouble if he/she decides not to make payments, and the loan is still in your name. Then you’re very screwed.
If he/she has good credit, then the bank will possibly do it, and you may make some outside arrangement with your friend to pay you a little extra, but it probably won’t happen that way.
Sometimes we get in over our heads. We’ve all done it. Chalk it up to a lesson learned, and move on.
Good luck.
Nad
July 9th, 2010 at 6:13 am
you cannot sell a car without a clear title., no matter who has good credit or not. If you did anyway, and he doesn’t pay for it, the dealer will still demand from you the money, owed on the car.If he becomes deliquient and you don’t pay up. this will destroy your name and credit and possible go to jail.
July 9th, 2010 at 6:42 am
Your friend would have to go with you to your dealer, after he has gotten his loan and a check, use his check to pay off your loan, get the title on the spot, sign it over to your friend, have your friend pay you the extra $1000, and you’re done.
July 9th, 2010 at 7:32 am
It’ll be a pain in the butt, but it’s not a huge deal. Just have your friend go to his bank to get a car loan and explain the situation to them. Also, call the dealership and talk to the finance people there to find out what needs to be done, and to let them know what’s going on. Between the 2 of them you should be able to figure out exactly what needs to be done, and nobody should have any problems with it as long as your friend gets the loan and you’re prepared to pay the difference immediately. You should have no problem doing the same thing with a stranger as long as they can get a loan or have cash.
Going through Carmax may be easier, but you’ll only be getting the trade in value for the car, so you’ll end up paying a lot more to cover the balance of the loan.