I'm selling my car by owner. I'm not sure how to handle the transaction when I have a buyer. Any suggestions? Question: I am selling my car and I think I found a buyer. It is a 2007 Toyota Prius. We live in Florida and it is registered here. We have the car loan from a small Credit Union that is only in Grand Junction, Colorado, and they are holding the title. I am not sure how to handle the transaction because I usually trade my cars in on new ones at a dealership. I am not doing that this time, however, because dealers don't really want to give me what the car is worth in trade. I did find a possible buyer who will be able to pay me what my asking price is. I know I need to do some sort of bill of sale and, of course, collect the money from the buyer. I will only take cash, or go to their bank with them and cash their check, before I hand over the keys. Beyond that, I am not sure how to handle the rest of it. I know I am still responsible for the car till the bank receives the pay-off and posts it. How long should I keep the insurance active on it? Do I take off the plates? I paid for them and I know they can be transferred to a new car when I purchase one. But I also think I'm not supposed to let them drive away with no plates on the car, right? Also, do I have to charge them tax, like the dealers do to me? I am so confused. Has anyone been through this process, recently, and can give me any advice?
Thanks!
Answer:
The first step is to contact the credit union and find out the exact payoff on the loan. The buyer then would provide you with a certified check made out to the credit union, and the difference between the selling price and the payoff is given to you in either cash or other acceptable form.
This assumes that you owe less than the selling price. If you owe more, you would have to send the credit union the difference in certified funds.
The credit union could then send you, or the buyer, the title to the car.
Another alternative is to have the buyer wire the full selling price to the credit union, and they you have the credit union apply the funds to pay off the loan and the difference remains in your account.
The buyer has to be willing to pay and wait for the title, which may be a problem. If there is any way you can pay off the loan and get the title in hand, that would be better.
The buyer pays the tax when they title and register the car. You do not have to collect it.
Dealers are willing to take a car in trade and wait a bit for the payoff to be processed and the title received, but most retail buyers want the title to the car so they can register it and drive it after they pay for it.
Edit:
Note to N,
If you read the question, the car is financed by a credit union in Colorado, and the seller is now in Florida. There is no local branch for the buyer and seller to meet and handle the transaction, and it is very doubtful that any buyer will travel to Colorado to do so.
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