Selling But Still Owe

[xraypat]

I would like to sell my Yellow 2009 SM5 but I don't have the title because I still have payments left. Any idea how I would go about this? Is this something that scares buyers away? Thanks.

[rlynchtx]

I've done it before. Created a Bill of Sale stating the clean and clear title will be given to buyer when received from bank. Buyer had cashier's check made payable to my bank and I mailed it to the bank myself. Buyer gave me the difference. I gave him the bike and mailed him the title when I received it from the bank. Not as clean as a title-in-hand deal, but doable.

[Jeriatric]

When you pay the lien holder they will give you a clear title. Then, you give that to the buyer.

Notarize the bill of sale and attach photos. Some states require such for registration.

Go to your local DMV site, and consult your lien holder. They should have/provide HOW TO information for you.

[ARtraveler]

Your situation should not be a problem. A lot of people sell vehicles while still owing some money on the machine.

The most convenient way is to settle the deal at the finance institution where the money is owed. They take the money from the new buyer, you get the difference, and the new buyer is assured they will get the title form the lender. This also saves you the problem of someone trying to buy from you without legitimate funds. Sometimes, the new buyer may even want to finance from the institution that you are dealing with.

[xraypat]

Thanks for the info! I have a great spyder with lots of extras that I'm hoping to
find a new home for and this definately helps me. Thanks again

[ARCTIC]

You could always have a statement showing what you owe on the bike then have the buyer make the check payable to both you and the bank if their nervous about it. you obviously can't require cash but I would make sure whatever form of payment they provide its legit. maybe the best way would be to coordinate it with your bank have them wire the funds and you give them the title right there at the bank

[DrewNJ]

Personally, I'd try to borrow the money somehow to get the title first. Assuming you don't owe all that much anymore on your 09' it might make more sense to do a small unsecured loan, credit card cash advance, beg, borrow, whatever.....Pay it off on your end when the spyder is sold.
Having the title in hand when selling IMHO is pretty key when selling a used machine.

[SpyderDen]

I see the OP has the Spyder listed. I don't think there is any problem with a secured title. I would be more concerned with the buyers funds. And I have sold a few online vehicles with a much higher value than a Spyder.

[Spyder4Tess]

The Spyder I just bought my wife was still under financing from the seller.
He showed us the loan docs and registration.We gave him the cash,he gave us the registration and a bill of sale.

We were able to get insurance with no issues.

He since then has paid off the loan and the title will be mailed to him within a few weeks.
It's just a matter of trust between seller/buyer and patience waiting for the title.

A lot of buyers may walk away not wanting to wait or not trusting the seller.

[Cruzr Joe]

The Spyder I just bought my wife was still under financing from the seller.
He showed us the loan docs and registration.We gave him the cash,he gave us the registration and a bill of sale.

We were able to get insurance with no issues.

He since then has paid off the loan and the title will be mailed to him within a few weeks.
It's just a matter of trust between seller/buyer and patience waiting for the title.

A lot of buyers may walk away not wanting to wait or not trusting the seller.

HINT : NEVER DEAL THIS WAY IN CASH. Use a bank check or something similar.

Cruzr Joe

[SpyderAnn01]

The Spyder I just bought my wife was still under financing from the seller.
He showed us the loan docs and registration.We gave him the cash,he gave us the registration and a bill of sale.

We were able to get insurance with no issues.

He since then has paid off the loan and the title will be mailed to him within a few weeks.
It's just a matter of trust between seller/buyer and patience waiting for the title.

A lot of buyers may walk away not wanting to wait or not trusting the seller.

Wow you were really trusting! I bought my first Spyder from a young guy that had it for a month before he found out he couldn't afford it. I met him at the bank that held the loan and we completed the sale there. Absolutely no problems and I have done this with cars also but never would I just give them cash with no title. I know all states are different but did you at least have him sign the title over to you?

[Spyder4Tess]

HINT : NEVER DEAL THIS WAY IN CASH. Use a bank check or something similar.

Cruzr Joe

Wow you were really trusting! I bought my first Spyder from a young guy that had it for a month before he found out he couldn't afford it. I met him at the bank that held the loan and we completed the sale there. Absolutely no problems and I have done this with cars also but never would I just give them cash with no title. I know all states are different but did you at least have him sign the title over to you?

Yes you guys are right.
The owner was an 83 year old man!Some other people I would not trust.
Yes we were trusting but he showed us all the paper work and everything matched.Dont see any reason he would try to stiff us.

[Michael211_2000]

So what do you do if you purchase a Spyder from a private seller who has a lien holder who holds the title, the seller either doesn't pay the lien holder off from the funds you gave the seller or you (the buyer, now in possession of the Spyder) never receives the title for whatever reason?

If you as the Buyer are in possession of the machine, the Seller has the money, and for whatever reason you the Buyer do not receive the title after awhile, what's your recourse then?

Note: I'm assuming there is a bill of sale at the very least the Buyer and Seller both have a copy of, documenting the machine sold date of sale who the seller and buyer are and signatures confirming the sale!

In most cases I image the Seller will be honest and pay the lien off and forward the title to the Buyer.... but there is this worst case scenario to consider, which is and should be a concern right?

- Michael

[BajaRon]

Your situation should not be a problem. A lot of people sell vehicles while still owing some money on the machine.

The most convenient way is to settle the deal at the finance institution where the money is owed. They take the money from the new buyer, you get the difference, and the new buyer is assured they will get the title form the lender. This also saves you the problem of someone trying to buy from you without legitimate funds. Sometimes, the new buyer may even want to finance from the institution that you are dealing with.

Make an appointment at the loan institution and meet the buyer there. Money, title, loan, everything is taken care of free and clear right there. No one gets burned and no surprises later on down the road. This is, by far, the best way to do it.

[ARCTIC]

So what do you do if you purchase a Spyder from a private seller who has a lien holder who holds the title, the seller either doesn't pay the lien holder off from the funds you gave the seller or you (the buyer, now in possession of the Spyder) never receives the title for whatever reason?

If you as the Buyer are in possession of the machine, the Seller has the money, and for whatever reason you the Buyer do not receive the title after awhile, what's your recourse then?

Note: I'm assuming there is a bill of sale at the very least the Buyer and Seller both have a copy of, documenting the machine sold date of sale who the seller and buyer are and signatures confirming the sale!

In most cases I image the Seller will be honest and pay the lien off and forward the title to the Buyer.... but there is this worst case scenario to consider, which is and should be a concern right?

- Michael

Ask the seller to provide a current statement showing what is owed against the bike and as long as your purchase price is sufficient to retire the debt in full, make the check payable to the lender and the seller jointly

[ARCTIC]

Agreed

Make an appointment at the loan institution and meet the buyer there. Money, title, loan, everything is taken care of free and clear right there. No one gets burned and no surprises later on down the road. This is, by far, the best way to do it.

[kyspyder]

The correct way to handle this situation is with a "Power of Attorney for vehicle lien release"
Do a Google or Bing search for same and there are many, many examples that you can use. There probably will even be an example for your particular State.
This method is totally foolproof and safe. used by vehicle Dealers everywhere.

KYSPYDER

[MouthPiece]

The Spyder I just bought my wife was still under financing from the seller.
He showed us the loan docs and registration.We gave him the cash,he gave us the registration and a bill of sale.

We were able to get insurance with no issues.

He since then has paid off the loan and the title will be mailed to him within a few weeks.
It's just a matter of trust between seller/buyer and patience waiting for the title.

A lot of buyers may walk away not wanting to wait or not trusting the seller.

Too many loose ends. IMHO.

Chris

[Spyder4Tess]

HINT : NEVER DEAL THIS WAY IN CASH. Use a bank check or something similar.

Cruzr Joe

Wow you were really trusting! I bought my first Spyder from a young guy that had it for a month before he found out he couldn't afford it. I met him at the bank that held the loan and we completed the sale there. Absolutely no problems and I have done this with cars also but never would I just give them cash with no title. I know all states are different but did you at least have him sign the title over to you?

Too many loose ends. IMHO.

Chris

After waiting about 5 weeks,picked up the title yesterday from the seller!
The financial company sent the title to DMV then DMV sent the title to the owner and the title was clear in his name.

Some scary thoughts did cross my mind while waiting!

[Bob Denman]

Glad to hear that it went as planned!

[PistonBlown]

Recent article in local paper about what can happen...

http://www.stuff.co.nz/the-press/new...an-repossessed

''If the vehicle was used as security over a loan, and payments weren't made, then the people who have security maintain it until the payment is given, even if the car has changed hands,''

This is obviously in NZ but I suspect finance companies and the laws around loans are the same the world over.