Selling a car with loan pending

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go_getter007@yahoo.com - 20 Jul 2006 18:02 GMT

Hi, I want to sell my car but there is still some amount pending on my
auto loan. Here are my questions:

1. If I want to sell my car to someone, do I need to pay the pending
balance in full to the auto loan company to get the title and then sell
it OR I can simply transfer the pending balance and title to the new
buyer?

2. If the new buyer uses an auto loan himself (and doesn't pay me the
whole amount at once him/herself), I still get the whole amount from
the buyer's lending agency, right? Collection from the buyer is his/her
lending agency's responsibility, right?

Thanks.

GG007

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Kevin - 20 Jul 2006 22:58 GMT

> Hi, I want to sell my car but there is still some amount pending on my
> auto loan. Here are my questions:
[quoted text clipped - 12 lines]
>
> GG007

It all depends on what Country or State you are in. What usually happens is
the buyer arranges financing at the institution of his choice, then they
contact your lending institution to make the pay off arrangements on your
car loan. You either get a check for the difference if the buyer is paying
more than you owe or you have to write a check to you lender to make up the
difference if the buyer is not paying enough to cover you balance due. At
some point in the trans action you and the buyer will probably have to meet
at the lending institution to close the deal.

Kevin

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