I have some questions that I hope some can help with. My wife has an 08 Avenger that isn't listed in KBB right now, but we want to sell it, we just don't know what we will need to do to do that. We will have it listed and all of that, that's no problem, but we wonder what we need to do about the bank owning it and transfering the title since we don't have it obviously. Anyone know? We want to upgrade to an R/T, but the stealers only want to give us $14,000 for it when we paid $21,000. It has heated seats and remote start to name some of the nifty featrues. If anyone knows what I need to do with the bank/title, please let me know. It would be very appreciated.

 

Not sure what State you live in, so I'll give you a "typical" scenario.

The price you set/get is up to you. I would guess if it has less than 6,000 miles on it and no damage, 10% below what you paid would be a reasonable price. The buyer is responsible for any applicable taxes at the time of registration (except Commonwealth states such as Virginia - it's paid as personal property tax).
DO NOT ACCEPT CASH for the vehicle. Get a Cashier's Check, Certified Check, or Teller's Check - guaranteed funds that the bank will honor immediately. Cash will get you an "income tax form" to fill out (federal form for all cash transactions OVER $9,999.00) and you'll have to pay income tax on the cash you present the bank to pay off the existing loan.

Once you have the guaranteed check from the buyer, you sign the title (and or registration - whatever your State requires) over to them. The buyer will be able to re-title & re-register the car, BUT the leinholder (the bank/company that financed the car for you) will still be shown as a leinholder on THEIR title. You have to present your payoff to the bank that has the security interest in the vehicle. You should also ask for their loan department to immediately forward a "Satisfaction / Release of Lein" form to you, which you'll forward to the new owner. This releases you from obligations on your old car loan (through the payoff), and eliminates the new owner from dealing with your financial institution in the future. If the new owner is borrowing money to buy the car from you, they'll need the VIN for their bank to file THEIR lein on the car's title before they get the money to pay you. The title they get will probably have your leinholder on it as well as theirs if they title / register the car right away. Once you get your bank's "Release of Lein" signed by an authorized agent of the bank, you forward that to the new owner and your bank can be removed from the title as having any security interest in the car - their interest has been satisfied. The new owner can send the Release of Lein to their bank, or the State, and have the lienholders list reduced to just THEIR bank.

It's actually very easy - just a matter of a few forms to fill out and a little leg work.

Best of luck to ya!

 

Wow! That was more information then I expected. Thanks a lot for the info! Have you done it a few times or something?

 

I used to underwrite Auto-Indirect loans for a local bank. That was the type of thing I & my staff did all day, every day..........that and dealing/arguing with Auto Dealership F & I managers. (My favorite F & I manager quote: "This guy is GOLDEN!". Yup they were ALL "golden".)