The only thing I left to do with the guy who wants to buy my car is agree on a price. Assuming all goes well (price talk), his plan is to give me a cash deposit for the car while he gets his loan. The only way the deposit is refundable is if I sell the car to someone else. Now, my question is, what happens with the title and stuff? Is there no paperwork until his loan goes through and he pays me for the whole amount? I was planning on writing up a contract for his deposit just so he knows I won't be taking his money and running or something, but I wouldn't be signing over the title or anything until he pays in full right?
If you own the car:
You sign your title and hand it to him as he hands you the check or cash. In some states/counties you might be required to sign an affidavit regarding the miles on the car or the sale price. If so, it's his responsibility to get this to you. Go ahead and sign over the title and let him worry about it, but be aware he might come calling again that he needs your signature for something.
If your bank owns the car (you still have a loan):
You need to pay them first. Let them know in advance so they can get the title out of the vault (or wherever they keep them). The best thing is to go into the bank with the buyer and have him write the check there. You can then deposit it and pay off what you owe, and hopefully pocket the rest (if he paid more than what you owed). You should then be able to get the title signed over to you or to him, then hand him the signed title. Basically the same process as above, but you have to get the bank to sign over the title (which they will only do once it's paid off!).
No you don't need to pay tax, the BUYER pays tax, the amount of which depends on the selling price.
Hey marcucci, you said sign over the title, do you mean, sign over the title before he gets all the money from the buyer? or do you mean, just sign it over once the buyer pays in full (cash or check)? also remember to make sure the check clears first (if its a private check).
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'99 Honda Prelude 5spd
AEM CAI
Eibach Pro-Kit
KYB AGX shocks
5pt Racing Harness
Let's say I'm asking 18k for my car and someone comes up and gives me a check for that amount. I've got to go and pay the bank off now and get the title. My question is this: Who should keep the car while the title is being transferred.
With the last used car I bought, I drove the car back from about 3 hours away that night. I didn't get the title for almost a month. I'm thinking about trying to sell my car like this and I don't really know if I should let them take the car or insist on keeping it (and not driving it).
When I said "sign over the title" I meant after he has a check in his hand. Don't do *anything* w/out a cashier's check or better, cash, in your hand.
You should keep the car while the transaction is being processed. If the buyer is worried, then you should both go to the bank, have him write the check to the bank for the payoff, then write you a check for the difference between that and the sale price. Or have him write you a check once you are both there and the bank has the title in hand, waiting for you to deposit his check. It's a PITA no matter how you cut it, but you don't really own the car- the bank does. You've got to get the money to them first. Don't let him take physical possession of the car before the car is in his name. He has no right to it until then.
DO NOT let him take the car before you have the money. If he's willing to pay you and then wait for the title (like you did), that's his business. I wouldn't (and didn't) when buying a used car, I refuse to give money w/o legal ownership. AS a seller, you can really do what you want, as a buyer, he has the right to wait to pay until he sees the title and knows he'll get it. If you both go to the bank, that's the easiest way to handle it.
Re: someone explain the private selling process (car)
Quote:
Originally posted by jmcn The only way the deposit is refundable is if I sell the car to someone else.
personally... the deposit should be to say that he is going to purchase the car... if he backs out the deposit is your's...
you should also sign a agreement with him that looks something similar to what followings...
I, your name, hereby sell the foloowing vechicle, 19XX honda prelude VIN# XXXXXXXXXXX, AS IS for the price of $XX,XXX on the date of 06-XX-01.
____________________________ ______________________________
Your Name Buyer Name
you should make two of these, one for each of you... now make some copies of it and keep it in your records... that way if something goes wrong w/ the car he can come back at you with anything....
When I sold my 1993 VTEC, I took a small $200 deposit from the buyer. I paid off the balance of my auto loan to the bank with a credit card. Then the bank sent me my title. (It took about 3 weeks.) The day I got the title, I met the buyer at a title transfer place. They brought the cashier's check for the balance of my car, and I gave them my title and car. Then I cashed the cashiers check they paid with and paid of my credit card balance and used the rest as down payment on my 2000 Prelude...
jmcn, here's a simple solution for you. Your car is paid off right? You should have your title. Just go to a notary service and you can do the title transfer there. They take care of everything for you including the amount of tax the buyer has to pay. Just make sure you get the check/cash for your car from the buyer when you get to the notary. You don't have to pay anything, the buyer pays all the fees. All you have to do is sign your title over to him. Good luck!
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Steve
2004 F-150 FX4 Supercrew (current)
2000 Prelude Mugen SS (sold 1/02)
1992 Prelude Si (sold 12/99)
Originally posted by o0OO0o why are you selling your car again?
It's just not the right car for me. I think it was a mistake to not get a 240sx last year when I bought the lude instead. I am "correcting" that mistake. 240sx w/ f-max turbo kit here I come.
Re: Re: someone explain the private selling process (car)
Quote:
Originally posted by Mugenlude
personally... the deposit should be to say that he is going to purchase the car... if he backs out the deposit is your's...
That's exactly what he said!
Quote:
you should also sign a agreement with him that looks something similar to what followings...
I, your name, hereby sell the foloowing vechicle, 19XX honda prelude VIN# XXXXXXXXXXX, AS IS for the price of $XX,XXX on the date of 06-XX-01.
____________________________ ______________________________
Your Name Buyer Name
you should make two of these, one for each of you... now make some copies of it and keep it in your records... that way if something goes wrong w/ the car he can come back at you with anything....
If you look at *any* title from any state, this is ON the title. There's a spot for the owner to sign to "release" ownership, then a spot for the buyer to sign with odometer disclosure, etc. Some states require more paperwork that say essentially the same thing. Unfotunately, if the bank owns the title, it doesn't matter what you sign; the bank owns the car and all other documents are irrelevant until you pay off the bank- then they don't care who owns it.
Re: Re: Re: someone explain the private selling process (car)
Quote:
Originally posted by marcucci
[B]
If you look at *any* title from any state, this is ON the title. There's a spot for the owner to sign to "release" ownership, then a spot for the buyer to sign with odometer disclosure, etc. Some states require more paperwork that say essentially the same thing. Unfotunately, if the bank owns the title, it doesn't matter what you sign; the bank owns the car and all other documents are irrelevant until you pay off the bank- then they don't care who owns it.
I need seen that on a title, however, it probably there if you say it is. However, I just feel better having the agreement in MY hands and in my records.
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