E90Post
 


 
BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > Regional Forums > USA - NY / NJ / CT / PA > Selling Financed Car to Private Party



Reply
 
Thread Tools Search this Thread
      05-03-2013, 03:37 PM   #1
alantan23
Private First Class
4
Rep
173
Posts

 
Drives: Non-BMW
Join Date: Apr 2010
Location: Brooklyn, NYC

iTrader: (1)

Selling Financed Car to Private Party

Hi all.

Has anyone ever sold a car currently being financed (penfed.org) to a private party? What measures can be taken to protect both buyer and seller?

Thanks in advance.
Appreciate 0
      05-04-2013, 01:51 PM   #2
e92_Mack
Major
e92_Mack's Avatar
United_States
13
Rep
1,336
Posts

 
Drives: 335XI Coupe
Join Date: Sep 2012
Location: NY

iTrader: (0)

Garage List
I bought mine from a private seller who was still financing the car through BMW.
Write up a buyers/sellers agreement showing the year, make, model, vin#, and both of your names (including signatures). You should get it notarized, especially if you are leaving the seller a deposit to hold the car.
Make sure you have the exact payoff amount because that amount MUST be satisfied for the title to be clear. Call the bank with him and have them verbally confirm the payoff.
Also make a copy of both licenses.
These steps should protect both parties involved.

FYI in the State of New Jersey, motorists are not title holders like NYS until all liens have been satisfied so if your seller is from Jersey be prepared to wait for that title, which takes about a month. It has to be released from the bank, sent to dmv, updated, and then sent to the original owner who then has to send it to you or your bank (if your financing)...I had to find that one out the hard way

Goodluck
Appreciate 0
      05-04-2013, 02:47 PM   #3
napeHbNYC
Captain
United_States
6
Rep
617
Posts

 
Drives: 2010 E90 335 RWD 6MT
Join Date: Feb 2013
Location: NY,NY

iTrader: (6)

Pretty much what has been said. I sold my g37 while it was still financed under IFS. We signed a sales agreement with exact payoff. Guy sent the check to the IFS and they sent the lien release directly to him with my authorization. He picked up the car
Appreciate 0
      05-04-2013, 06:56 PM   #4
bwsteg
Captain
bwsteg's Avatar
United_States
6
Rep
601
Posts

 
Drives: AM e92 335i 6MT
Join Date: May 2011
Location: Queens NY

iTrader: (12)

Garage List
I went through the same procedure as mentioned above when buying my 335i. Difference was that I took possession of the car right there and then. No way was I going to make out a $30k check to the buyer and only have a piece of notarized paper to show for.
__________________
Acura RSX-S K24a2 JRSC Swap - SOLD
CPO BMW 335i 6MT - SOLD
Appreciate 0
      05-05-2013, 11:57 AM   #5
alantan23
Private First Class
4
Rep
173
Posts

 
Drives: Non-BMW
Join Date: Apr 2010
Location: Brooklyn, NYC

iTrader: (1)

How do you take posession of the car? The financing company doesn't hand you the title right away. I'm the potential seller btw. I figure I'd do all the steps above with the paperwork AND let the potential buyer store the car at his residence in the mean time.
Appreciate 0
      05-05-2013, 08:14 PM   #6
bwsteg
Captain
bwsteg's Avatar
United_States
6
Rep
601
Posts

 
Drives: AM e92 335i 6MT
Join Date: May 2011
Location: Queens NY

iTrader: (12)

Garage List
Quote:
Originally Posted by alantan23 View Post
How do you take posession of the car? The financing company doesn't hand you the title right away. I'm the potential seller btw. I figure I'd do all the steps above with the paperwork AND let the potential buyer store the car at his residence in the mean time.
Yes that's what I meant..Potential buyer takes possession of the vehicle while the title/lien release are mailed.
__________________
Acura RSX-S K24a2 JRSC Swap - SOLD
CPO BMW 335i 6MT - SOLD
Appreciate 0
      05-06-2013, 10:19 AM   #7
e92_Mack
Major
e92_Mack's Avatar
United_States
13
Rep
1,336
Posts

 
Drives: 335XI Coupe
Join Date: Sep 2012
Location: NY

iTrader: (0)

Garage List
Quote:
Originally Posted by bwsteg View Post
I went through the same procedure as mentioned above when buying my 335i. Difference was that I took possession of the car right there and then. No way was I going to make out a $30k check to the buyer and only have a piece of notarized paper to show for.
Agreed, thats why I only gave a small deposit to be safe and to show good faith to the seller.
Appreciate 0
      05-07-2013, 01:35 PM   #8
DrDurt
Lieutenant
DrDurt's Avatar
United_States
9
Rep
519
Posts

 
Drives: e90 325xi
Join Date: Mar 2010
Location: BaskingRidge, NJ

iTrader: (2)

I had the buyer of my Audi send a certified bank check to TD (they held my loan) - they then released the title to me (via overnight shipping) and I signed it over. (with a signed agreement and all that of course)
Appreciate 0
      05-07-2013, 03:07 PM   #9
MyE92
El Presidente
MyE92's Avatar
United_States
84
Rep
6,815
Posts

 
Drives: your mom wild.
Join Date: May 2007
Location: NJ

iTrader: (24)

So did you guys buy/sell the car for the payout amount or more? If its more, how does it work? Does the buyer send one check to the finance company for the payout amount, and another check to the seller for the difference?
Appreciate 0
      05-07-2013, 03:56 PM   #10
DrDurt
Lieutenant
DrDurt's Avatar
United_States
9
Rep
519
Posts

 
Drives: e90 325xi
Join Date: Mar 2010
Location: BaskingRidge, NJ

iTrader: (2)

Quote:
Originally Posted by MyE92 View Post
So did you guys buy/sell the car for the payout amount or more? If its more, how does it work? Does the buyer send one check to the finance company for the payout amount, and another check to the seller for the difference?
No, the buyer had no idea what the difference was in my case. He sent the check to the bank, the bank sent my title and a check for the difference.
Appreciate 0
      05-07-2013, 06:28 PM   #11
bwsteg
Captain
bwsteg's Avatar
United_States
6
Rep
601
Posts

 
Drives: AM e92 335i 6MT
Join Date: May 2011
Location: Queens NY

iTrader: (12)

Garage List
Basically when the seller and buyer agree to a purchase price, the buyout amount is irrelevant. If buyout is more, seller adds the difference or 2 checks can be sent..If buyout is less, buyer makes out two checks or makes out check to finance company and hands seller cash for the difference...
__________________
Acura RSX-S K24a2 JRSC Swap - SOLD
CPO BMW 335i 6MT - SOLD
Appreciate 0
      05-07-2013, 07:44 PM   #12
e92_Mack
Major
e92_Mack's Avatar
United_States
13
Rep
1,336
Posts

 
Drives: 335XI Coupe
Join Date: Sep 2012
Location: NY

iTrader: (0)

Garage List
Quote:
Originally Posted by MyE92 View Post
So did you guys buy/sell the car for the payout amount or more? If its more, how does it work? Does the buyer send one check to the finance company for the payout amount, and another check to the seller for the difference?
In my case the payoff was less then the purchase price so I had a check sent to BMW and I gave the seller the difference.
Appreciate 0
      05-07-2013, 08:18 PM   #13
Leekay07
Private
2
Rep
98
Posts

 
Drives: 08 335XI Sedan
Join Date: Sep 2012
Location: NY

iTrader: (0)

5. Complete the Sale

You usually don't need a contract for a private-party sale because most of the sale is handled by your bank. Once you and the seller have agreed on a price, contact your bank lender with the car's information and the negotiated price. They'll issue you a pre-written check. The next step is to transfer the car's title. You should go to the DMV with the seller to complete this transaction. Do not physically hand over the check until you have the modified title in hand.

An exception is if the seller still needs to satisfy a lien (or loan) on the car, which means the title can't be transferred to you until the loan is paid. Giving the seller a check yourself is risky because they could simply cash it and not pay off their loan. Instead, ask the seller to have their bank lender give them a 15-day payoff amount (which is the money needed to satisfy the loan). Then tell your bank that same information. Using your loan, your bank will pay off the existing lien for the seller and give them any cash left over. The seller's lender will then send you the car's title in your name.
Appreciate 0
      05-07-2013, 09:10 PM   #14
bwsteg
Captain
bwsteg's Avatar
United_States
6
Rep
601
Posts

 
Drives: AM e92 335i 6MT
Join Date: May 2011
Location: Queens NY

iTrader: (12)

Garage List
Quote:
Originally Posted by Leekay07
5. Complete the Sale

You usually don't need a contract for a private-party sale because most of the sale is handled by your bank. Once you and the seller have agreed on a price, contact your bank lender with the car's information and the negotiated price. They'll issue you a pre-written check. The next step is to transfer the car's title. You should go to the DMV with the seller to complete this transaction. Do not physically hand over the check until you have the modified title in hand.

An exception is if the seller still needs to satisfy a lien (or loan) on the car, which means the title can't be transferred to you until the loan is paid. Giving the seller a check yourself is risky because they could simply cash it and not pay off their loan. Instead, ask the seller to have their bank lender give them a 15-day payoff amount (which is the money needed to satisfy the loan). Then tell your bank that same information. Using your loan, your bank will pay off the existing lien for the seller and give them any cash left over. The seller's lender will then send you the car's title in your name.
Two things, a notarized contract is certainly needed to make this safer especially when cash is involved. Not all vehicles are purchased via financing.

Also, when a buyer is going to buy a car with a lien. What is recommended is that buyer go to his bank, request a certified or cashiers check to the name of the financial institution. This prevents seller from being able to cash check. Also both seller/buyer can mail out the check together so both parties are confident that the check was indeed mailed.
__________________
Acura RSX-S K24a2 JRSC Swap - SOLD
CPO BMW 335i 6MT - SOLD
Appreciate 0
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 08:30 PM.




e90post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST