Anyone sold a vehicle with an outstanding loan? Advice?

[bchandler]

I'm about to sell my motorcycle which is currently financed. There is about $3600 left on the loan, and I am selling it for $7000, so luckily I am not upside-down on the loan. The loan is through HSBC. I have called their customer support number, and they say pretty much the only way to do it is to pay off the loan in full and they will mail the title to me (I cannot transfer the loan to someone else).

The guy wants to pay cash. Have any of you dealt with a situation like this before? The best thing for me would be to have him pay me in full, we write a bill of sale and a contract for me to pay off the loan and mail him the title ASAP, and we go our separate ways. However, I know a lot of buyers may not be comfortable about this.

I cannot afford to pay off the loan myself at the moment.

I'm just wondering if any of you have done this before and have advice on how to handle a transaction like this.

[woodasptim]

That is how it has always been handled on my vehicles in the past. The only exception to that rule was my Jeep, I paid cash and the guy went down the street to the bank and picked up the title and handed it over to me. So even then it was really the same thing, just a compressed time frame.

[hvnit2gd]

I'm about to sell my motorcycle which is currently financed. There is about $3600 left on the loan, and I am selling it for $7000, so luckily I am not upside-down on the loan. The loan is through HSBC. I have called their customer support number, and they say pretty much the only way to do it is to pay off the loan in full and they will mail the title to me (I cannot transfer the loan to someone else).

The guy wants to pay cash. Have any of you dealt with a situation like this before? The best thing for me would be to have him pay me in full, we write a bill of sale and a contract for me to pay off the loan and mail him the title ASAP, and we go our separate ways. However, I know a lot of buyers may not be comfortable about this.

I cannot afford to pay off the loan myself at the moment.

I'm just wondering if any of you have done this before and have advice on how to handle a transaction like this.

People do this all the time, just get the money from him and pay your loan off. Get something from the bank stating it is paid in full. Also, have him get a cashiers check in your banks name for the full amount. Once its paid off they will send the lien release and title to you in the mail.

Simple.

[JFK777]

You can get his money, pay-off the loan. And in most cases, the bank will send the title to the new buyer, if you request that. It's a major pain in the butt, dealing with this type of situation.

[IndyGunFreak]

Another easy way to do this.. would be to simply type up a bill of sale on your computer, and you both sign it.

Mr _______ has paid $ _______ for a _______________. Upon payment of loan and receipt of title, title will be signed over to buyer to complete the transaction.

He keeps his copy, you keep your copy, and as long as one of you isn't intent on screwing the other, it should go fine. You'd probably want to put the VIN of the bike on the bill, description, etc. As soon as you receive the title, you follow through and sign it over to him. He probably would want to go with you to the bank, to make sure you do indeed pay off the loan, which isn't unreasonable in my opinion...

IGF

[Glocks&Ducs]

Do you have a local branch? If you do, ask them to get the title from the titles department because you want to sell the vehicle. It is usually a central location other than your branch. Once the title gets to the bank, both you and the buyer can go to the bank and perform the transaction there. You get your money, pay off the loan, and the buyer gets the title. They should be willing/able to do this, because the title never leaves their posession until they have their money.

[Rinspeed]

If he was smart he would only pay cash for the portion that you are keeping and write a check to HSBC for the balance. In most states he can take the title with him and bank will give you a lien release when you go pay it off. Then he can just hand over the lien release with the title when he goes to the DMV.

[Glocks&Ducs]

You can get his money, pay-off the loan. And in most cases, the bank will send the title to the new buyer, if you request that. It's a major pain in the butt, dealing with this type of situation.

I doubt anyone does it this way. What would be the purpose of sending the title directly to the buyer, when the buyer would simply have to turn around and track the seller down so they can sign the title over to them?

[uneasyrider]

Do you have a local branch? If you do, ask them to get the title from the titles department because you want to sell the vehicle. It is usually a central location other than your branch. Once the title gets to the bank, both you and the buyer can go to the bank and perform the transaction there. You get your money, pay off the loan, and the buyer gets the title. They should be willing/able to do this, because the title never leaves their posession until they have their money.

This is the way to do it.

[ms1600]

Do you have a local branch? If you do, ask them to get the title from the titles department because you want to sell the vehicle. It is usually a central location other than your branch. Once the title gets to the bank, both you and the buyer can go to the bank and perform the transaction there. You get your money, pay off the loan, and the buyer gets the title. They should be willing/able to do this, because the title never leaves their posession until they have their money.

This is exactly how I did it when I purchased a motorcycle that the seller still owed $$ on. It helped that the seller and I used the same credit union.

[myglockisa23]

I just did this a few months ago on a Harley.... The purchaser gave me two cashier's checks.. One check was paid to me and the Bank (Harley) where the amount was owed. He took the bike the day he gave me the first check....and kept it in his garage, he could not register it until he got the title... I overnighted the cashier's check to Harley and had the title back in 3 days....I then signed the title over to him and he gave me the other cashiers check....