 |
 | Home | Contact Us | FAQ | Search & Site Map | Link to Us |
 | Sign In | Join | Other 45 Sites in Network |
Car Forum / Driving, Maintenance, Tuning / Maintenance and Repair / July 2005Selling a car - with outstanding car loan?
A friend of mine told me that I couldn't sell my car without first paying off my outstanding car loan to GMAC. Is this true? Thanks for any help, Brian >A friend of mine told me that I couldn't sell my car without first > paying off my outstanding car loan to GMAC. Is this true? > > Thanks for any help, > Brian Definitely. s You can agree to sell the car but you can't transfer title unless you pay off the loan simultaneously. If you can't pay off the loan prior to the sale, then you can contact GMAC, tell them what you are doing and they will tell you what to do, along with any penalties that might apply for early repayment. Often they ask for the check to be made out to them and they give you whatever is left over. Unless of course you decide to embark on a life of crime and commit fraud... Brian >>A friend of mine told me that I couldn't sell my car without first >> paying off my outstanding car loan to GMAC. Is this true? [quoted text clipped - 3 lines] >> > Definitely. s > You can agree to sell the car but you can't transfer title unless you > pay off the loan simultaneously. If you can't pay off the loan prior > to the sale, then you can contact GMAC, tell them what you are doing > and they will tell you what to do, along with any penalties that > might apply for early repayment. Often they ask for the check to be > made out to them and they give you whatever is left over. I bought a car like that once. The seller admitted he still owed the bank for the car. When I checked it out at the Liens Office, this turned out to be correct, and it was the only registered lien against the car. I called the bank branch, and after some careful tangoing (figuratively speaking...) with a lady there, I determined a cheque amount that would satisfy the bank. They could not tell me specifically what was owed, so I had to keep throwing out figures until I gave one she was happy with. I guess they gave him whatever was left over. Once the cheque cleared, I took possession of the car and transferred the ownership into my name. > Unless of course you decide to embark on a life of crime and commit > fraud... I must be an innocent waif, because I can't see how you could do that. Only the lienholder can have the lien removed, and he's unlikely to do that unless he sees your shillings. > > Unless of course you decide to embark on a life of crime and commit > > fraud... > > I must be an innocent waif, because I can't see how you could do that. > Only the lienholder can have the lien removed, and he's unlikely to do > that unless he sees your shillings. It CAN be done, but it isn't legal. Get the clear title to a junker/wreck of the same type. The junker is crushed as scrap. The usable car gets a new identity. The old title disappears with the crush job. Or something like that. I'm not a very good crook, but there are ways to do it. > I must be an innocent waif, because I can't see how you could do that. > Only the lienholder can have the lien removed, and he's unlikely to do > that unless he sees your shillings. Let me add to a previous post that to alter every identifier on a car can be very difficult, and of course it is illegal to resort to this. Most crooks dont get caught in doing a half way job because they are seldom challenged if everything looks right on paper. We had a new diesel tractor/trailer stolen right off the yard in broad daylight, and there was never a trace found of it. Suspect it went south...far south. >A friend of mine told me that I couldn't sell my car without first >paying off my outstanding car loan to GMAC. Is this true? > >Thanks for any help, >Brian It depends on the due diligence of the potential buyer. An informed buyer will run away when he/she realizes that GMAC will reposess their car when you miss a payment (aren't liens fun). An uninformed buyer will be meeting you in court after that visit from the repo men, and could have you up on fraud charges. It may even be a crime to sell a vehicle with an undischarged loan. If the buyer has to pay the outstanding debt, expect to get only a small amount of money; unless, you still owe only a small amount of money. You might be able to trade it in for another vehicle and have the debt transferred, if the other vehicle is also bought with a loan from GMAC. > A friend of mine told me that I couldn't sell my car without first > paying off my outstanding car loan to GMAC. Is this true? > > Thanks for any help, > Brian GMAC has the first lien...the title to the car is legally theirs until you pay it off or make other arrangements. Even if you sold the car for cash and kept making the payments, the buyer could not get a clear title, insurance, etc until it is cleared up. You and your buyer would be nuts to try to sidestep legalities on a deal like this. GMAC probably has the actual title. The one you have probably has their name on the bottom of it as a lien holder. You can use that title for selling but you'll need a letter attached to it from GMAC stating they no longer have interest in the vehicle and/or its paid in full. Generally when you pay a car off, the loan company sends you your title back after a while. SO, you'd have to get what your getting for the car, pay off whats left on it to GMAC, get your letter faxed to you, then whats left is yours. If you sell it for 4000 and you owe 1000, you'll net 3000. If you sell it for 4000 and you still owe 5000 on it, then you just screwed yourself out of a car and 1000 bucks, and GMAC will still want the 5000 (ALL OF IT) and you will then be able to make a new loan for another car for yourself. > GMAC probably has the actual title. > The one you have probably has their name on the bottom of it as a lien [quoted text clipped - 13 lines] > the 5000 (ALL OF IT) and you will then be able to make a new loan for > another car for yourself. The scenario you presented, >If you sell it for 4000 and you still owe 5000 on it, then you just screwed yourself out of a car and 1000 bucks< , does happen quite often. Reason being, the owner often has credit good enough that he can owe more than the true market value of the car; in other words, he has negative equity; and he's often happy to pay the difference in order to get rid of the car for whatever reasons. s > A friend of mine told me that I couldn't sell my car without first > paying off my outstanding car loan to GMAC. Is this true? > > Thanks for any help, > Brian Well, actually you can sell your car to anyone, but you won't be able to transfer title until the loan secured by the lien on the car is paid. I have to ask. Why would you want to sell the car without paying the loan off at the same time???? after thought.... If its an unsecured loan on the car, it wont have a lien on it. > after thought.... > If its an unsecured loan on the car, it wont have a lien on it. Yep, but GMAC doesnt make unsecured loans, as far as I know. > after thought.... > If its an unsecured loan on the car, it wont have a lien on it. If it is an unsecured loan it wouldn't be on the car or secured by anything else other than his signature. Thanks everyone. I thoroughly understand the situation now. I'll pay off the loan first. No problem. >A friend of mine told me that I couldn't sell my car without first >paying off my outstanding car loan to GMAC. Is this true? > >Thanks for any help, >Brian If the buyer is getting a new loan, have his lender take care of the details of the payoff, etc. If the car is being sold to a cash buyer, go to a GMAC agent to do the transfer. Almost all GM dealers and many others are authorized GMAC agents. They can handle all the details. Many of them will do it for no charge. Other will charge a fee. A small price to ensure a hassle free legit deal where no one gets ripped in a fraudelant deal. Lugnut. Many consumer loans are this type. You cannot sell the item in question without discharging the loan. Get the payout amount from the loan provider. This will change month by month so best to request it with several weeks to next payment. Request a cashiers check from the purchaser. Another option might be to transfer the loan +cash to you for the sale of the vehicle. This assumes tha car sales price is well above the remainder of the loan. |
Reply to this Message |
 Sign In
 Join
 My Latest Posts My Monitored Threads My Blog My Photo Gallery My Profile My Homepage Start New Thread Enable EMail Alerts Rate this Thread
|
©2008 Advenet LLC Privacy Policy - Terms of Use
This website includes both content owned or controlled by Advenet as well as content owned or controlled by third parties.