Tuesday, October 25, 2011

How to sell a car to someone that wants to make payments?

I am wanting to sell my car but I have a few issues. FIrst the person wants to make a large payment then make payments on the car. How do I handle the Title, Insurance, and Registration?
How to sell a car to someone that wants to make payments?
I strongly suggest you NOT sell a car to someone that wants to make payments. If you want to sell your car for, say, $3000.00, and the person gives you $2000.00, chances are the person won't pay the remaining $1000.00. They bought the car for less than what you asked for, so you're stuck with the bad end of the stick. Ask for the payment in full and IN CASH, so there's no doubt that you won't get the money.

In regards to the rest of the items mentioned make sure the person transfer the car under their name IMMEDIATLY. The title of the car usually has a %26quot;Release Of Liability%26quot; form. This means that even if the person doesn't transfer the car under their name immediatly you won't be liable in an accident the other driver has on your vehicle. Also make sure they get their own insurance, and show you proof of insurance.
How to sell a car to someone that wants to make payments?
Umm this really is not resolved there is a safe way for you to sell a car privately and not have to worry about being scammed. One write up a contract even a basic one staing the amount paid in lump sum as down payment and the terms for the rest in payments. Go with the buyer to dmv pay for a lien.

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You would be better off not to do it and let them get a small loan at the bank. What can happen is, they could have trouble making payments, or fall behind, then you will pay hell to ever get your money, and to get a lawyer would cost a small fortune to get the rest of it. It happens not saying this particular person would ever do that, but it is very very risky to accept payments. A written contract still will require you to go to court if they ever fall short on payments it just is not worth the hassles.
The problem is , if you do this you need to KEEP OWNING THE CAR, until the payments are made to you in full. BUT If this person crashes the car and damages and hurts someone youre still responsible. Youre still responsible for the registration, insurance and all aspects of the car. You cant sign it over, cause the person will have bought it for one payment. a used car sale.. its not good to do it this way. Your small time. but if you do, you keep the insurance and name the stranger an additional driver on your policy. Im telling you if he causes $100,000 accident and you only have a $10,000 policy you can be sued for your share of the under insured amount. Its complex and not really recommended.

As soon as you sign your title over...they own that car and dont have to pay you another penny.

Thats why you need to keep the title in your OWN Name until its paid.
If he wants to make a large down payment.

Have him get a cashiers check in your name.

There are to many %26quot;bogus%26quot; checks going around.

He would be gone, by the time you found out the

check has %26quot;bounced.%26quot;

Have him go to the bank, and finance the rest,

and get the rest of your money, in a %26quot;cashiers check.%26quot; ONLY.

When you have the final check,

sign the title over to him. %26lt;}:-})
This is not a good idea. There have been many horror stories about buyers that wreck or get tired of the car and stop making payments. Or lose their job, or get mad at the seller over some small problem, or simply cheat the seller.

The buyer should get a loan, and use the proceeds of the loan to pay you cash for your car. That makes it nice and clean for both you and the buyer.
you should write a contract and have it signed and notarized. personally, i would hold the title because what happens if they take off and stop making payments? they have the title and you're out of luck. they should obtain registration and insurance.

i think you could avoid the possibility of a disaster though but not selling it to someone who wants to make payments.
You'll need to have the title put in their name.

You can go to a notary for a small fee to get some %26quot;proof%26quot;.

The Regs. and Ins. is up to them, but plan to have a smooth transition so the car is NEVER in your name AND uninsured. Even for hours. In some states it goes down to the minute and you can be fined retroactively.

With all that said, I sold my car in similar fashion as you want to and it was easier than I expected.

Contact the bank you have the car with.

Phone calls in this case may work better than internet searches.
You aren't in the business of selling and financing used cars. You are leaving yourself open to possible theft of your vehicle, leaving you little or no recourse. Tell them you need the entire amount, up front, or no deal.
Tell them to arrange a loan through their bank and come back with a cashier's check.

I never ever do a private sale on payments. The hassle is too much, the liabilities are too much. No thanks.
They will handle it through their financer (bank). They will give you a cashier's check for the whole amount. Don't handle the payments directly through them, you will be setting yourself up for disaster.

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