How to handle sale of a Tesla that is on contract

[skip8jj]

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.

 

[jddssc121]

Buyer sends check to title holder (the lender). Any additional amount needed comes from you, the owner. Once payoff is satisfied, the lender releases the title.

 

[skip8jj]

Thanks, seems clear enough, Skip

 

[skip8jj]

Just to clarify. we are not underwater. Does the buyer still send the check to the lender and then the lender sends the overage to me?

Thanks

 

[mandersen]

Just to clarify. we are not underwater. Does the buyer still send the check to the lender and then the lender sends the overage to me?

Thanks

Buyer sends the check for the amount owed to the lender and writes a check for the difference to you the seller.

 

[whitex]

Call your lender, they will be able to give you the payoff amount and whatever the paperwork you need to sign to let someone else pay off your car (without it, the buyer would be paying off car for which you would receive the released title). So let's say you were selling the car for 75K but you owed 55K. The buyer would give you a check (or money order or transfer, whatever you feel is safest) for $20K and you would give the buyer the release that they can pay off your car and get the title for it.

I've done it before, but it can be a little bit of a hassle. When I was selling my Tesla I wanted to reduce the risk with that much money, so I decided to pay a consignment dealer to handle the transaction - it cost me $1,000 for them to be the intermediary (they bought the car from me , paid it off, and sold to the buyer - all after I had a buyer of lined up of course, so for them it was a pass-through transaction).

 

[skip8jj]

Thanks all, Skip

 

[JPUConn]

When I sold mine and bought another model s earlier this month both vehicles had liens and each car was on the opposite side of the country from their buyer.

In both cases we signed standard contracts and bills of sale. The full purchase price was paid to the lien holder as a middle party. Lien holder (Alliant for one and TD Bank for the other) confirmed funds cleared then paid the respective seller the overage and released the title to the Seller to sign. Upon funds clearing the vehicles were released.

This title part is important for long distance transactions - make sure you expedite the title if you need temp registration to transport the vehicle. Atl least in my case that lien free signed over title was required to even temp register the car for transport from the car carrier to my house.

This will cost a few $ more but save a great deal of stress. Have title expedited to the seller. Once they sign it to you then have them expedite it to you.