Separate names with a comma.
Discussion in 'Tesla for Sale' started by skip8jj, Aug 23, 2017.
How to handle sale of a Tesla that is on contract
Did not mean to post and could not find a delete for it.
I meant to say that I am asking how one goes about handling the transaction when the car you are selling a car you have that you are paying for on a contract with a loan company. Does the prospective buyer settle with the contract holder first so that the title is clear? What instrument is best to receive for payment? Cashier's Check?
I've sold cars for cash that have had clear titles, but not one that is on loan contract. Thanks for describing the procedure.
Typically the buyer pays the bank directly for the car.. settles the loan, the bank then sends the clear title to the buyer, and then sends the balance of the proceeds to the seller. Ask your bank how to handle the sale.
@Hank, Thank you, Skip
i would not suggest doing this unless you trust the buyer. depending on the bank, they will not give the new buyer the title. technically if you pay off someones loan, the car title will go to the loan holder(previous owner). aka there is a line of trust that the previous owner will pass the title to you.
its a better idea to ask them to pay off the loan, wait for the title and sell it that way
if they dont have the money to pay off the loan, there are two ways to go about this if youre going to be paying off the loan for the seller. one is asking the bank if there is a physical title(usually held at HQ somewhere) and ask if they can send it to the local bank where you will do the transaction. make sure the bank and the seller signs off the title.
2nd is depending on your state, there should be a dmv duplicate title form that you and the seller/bank can fill out releasing interest in the car and signing it off to you. usually this form needs to be notarized.