[BeMyWife330i]

ok, lets say Bob bought a car 2 yrs ago... He still owes about 29k to the bank but the actual value of a car is about 19-21k... He refinanced his car loan in the same bank about a year ago and paying much less now... Somehow, his bank sent him a title right after he refinanced his car...
Now Bob is looking for another car... he found one for about 10k. He can pay cash for it, but doesnt want to keep another car...
so the queistion is:
can he sell his car to a private party with the title he got from the bank?
he would continue his payments to the bank though...
whats the best way of doing that? by "that" i mean buying another car for 10k cash and selling his old one for roughly 19k when he stills owes about 29k (to the bank).

[UCSBMW]

If you sell your car for market value...you will have to pay the negative difference of the loan out of pocket (use the money you were planning on purchasing the $10k car with, and justloan out the new car). Another way is if you buy the "new" car for $10k through financing, from a car broker or dealer and trade in your current car...you'll simply have to place the negative of your old car into the new car loan...which basically means you'll have a $10k car, with a $19k or so loan amount...unfortunately, the current economy definitely makes it a buyer's market and not a seller's...so either way you will have to realize a loss.

[D1911]

Selling a car with a lien on it is illegal...

You owe 29k to the bank.
You sell your car for 19k.
You owe bank 10k.

You have 10k cash.
You buy a car for 10k.
You're left with 0 and you still owe the bank 10k.

Instead of paying 10k cash for a car... use the 10k to pay off the negative equity and re-finance for amount of 10k.

You end up being in the same boat (owing the bank 10k) and not getting into a legal issue.

[BeMyWife330i]

Originally Posted by UCSBMW

If you sell your car for market value...you will have to pay the negative difference of the loan out of pocket (use the money you were planning on purchasing the $10k car with, and justloan out the new car). Another way is if you buy the "new" car for $10k through financing, from a car broker or dealer and trade in your current car...you'll simply have to place the negative of your old car into the new car loan...which basically means you'll have a $10k car, with a $19k or so loan amount...unfortunately, the current economy definitely makes it a buyer's market and not a seller's...so either way you will have to realize a loss.

thank you for your input

does the negative diffrence has to be paid off right away when the car is sold? and will the buyer get the title for the car, since the loan is not fully paid to the bank. i have the title, can i give it to buyer when he buys my car, and just keep paying off the diffrence.
sorry for so many questions, maybe i should go to the bank.

but again any advice is helpfull

[BeMyWife330i]

Originally Posted by D1911

Selling a car with a lien on it is illegal...

You owe 29k to the bank.
You sell your car for 19k.
You owe bank 10k.

You have 10k cash.
You buy a car for 10k.
You're left with 0 and you still owe the bank 10k.

Instead of paying 10k cash for a car... use the 10k to pay off the negative equity and re-finance for amount of 10k.

You end up being in the same boat (owing the bank 10k) and not getting into a legal issue.

thank you

im not worried much about the loss, i know ill be in the same position, just want to see what are the possobilities with this title that i received.

[UCSBMW]

Originally Posted by BeMyWife330i

thank you for your input

does the negative diffrence has to be paid off right away when the car is sold? and will the buyer get the title for the car, since the loan is not fully paid to the bank. i have the title, can i give it to buyer when he buys my car, and just keep paying off the diffrence.
sorry for so many questions, maybe i should go to the bank.

but again any advice is helpfull

Yes, the negative has to be paid off right away...otherwise you won't be able sell the car only with partial pay off. Though you hold title on the car, your bank holds the car as collateral. Whether it's all proceeds from the sale of the car, or a combo of sale money plus out of pocket, your existing loan has to be paid off in full at time of sale.

[BeMyWife330i]

Originally Posted by UCSBMW

Yes, the negative has to be paid off right away...otherwise you won't be able sell the car only with partial pay off. Though you hold title on the car, your bank holds the car as collateral. Whether it's all proceeds from the sale of the car, or a combo of sale money plus out of pocket, your existing loan has to be paid off in full at time of sale.

got ya, thank you

[audiprotein]

^^^sucks

[BeMyWife330i]

Originally Posted by audiprotein

^^^sucks

thanks for rubbing in

[audiprotein]

Originally Posted by BeMyWife330i

thanks for rubbing in

you are always welcome... come again