Best way to sell a financed car?

[N55_BBM]

Hey guys, I've had my 135 for 15 months now and will probably be selling it within the next month or two due to very likely overseas move. It's financed in 5 years (another 45 months to go, about $21k premium left).

Never had to deal with financing before.. what's the best (or easiest?) way to do this?

Would the buyer just take over the loan and pay it off (or not) himself, and give me the rest in cash? If so, how is the whole title transfer done since BMW Financial Services actually holds the title?

I don't have $21k available to pay off the loan and then sell it.. I could theoretically get a bank loan to pay the car off and then sell it and pay that loan off with my sale money, but this seems very bureaucratic and I'd probably loose a lot on transaction fees and interest?

Any insight from those of you with experience will be highly appreciated!

[Pangloss]

Sorry you're in this situation, but these things do happen sometimes. As I understand it (someone please correct me if this is wrong), if you're upside down then no buyer is going to take over your loan (why should they?). If it's a friend or relative then they might be willing to pay you and wait for the title. Then you can send that money plus the difference to BMWFS and wait for the title. If the buyer is unwilling to do this then you may be stuck. I don't know of any other way around that problem that doesn't involve large amounts of money. (You can't get a bank loan because they'd need the title as collateral. Of course if you have something else you can offer the bank as collateral that would work.)

One thing a lot of people do is take them to a place like Carmax, which is all set up for transactions like this. I've heard they can buy an upside-down car and take your check to pay off the rest of the loan. BUT I've never been real impressed with their offers. I've taken cars there several times for appraisal (it's free and it's a good way to back up a KBB-based estimate because they'll assess body damage, factor in carfax, etc). I really don't recommend this -- you'll get a better price selling it on your own if you can. They recently offered me $14k for my 2007 Solstice (KBB said almost 16), and while they're standing there telling me this there is an identical Solstice -- same year, options, identical condition, identical mileage and even the same color -- not five feet away from me, with a sticker showing $19,900 on the window. You gotta watch those guys. But it is an option and given your situation it may be the most palatable choice.

Incidentally, if you purchased gap insurance it may apply here, covering all or part of the difference between what the buyer pays you and what you owe. Those kinds of policies often cover more than just accidental loss.

You might also want to investigate the cost of shipping the car to your destination. A number of people on this forum have shipped their cars overseas so there is expertise on hand to help you with that. A 135 is well-suited for many overseas locations. It's not like you bought an Escalade.

[singular]

I did exactly the same thing about 13 years ago when I moved overseas for a period. In my case I had loans on two cars. My wife and I drove both into the dealership, came to an agreement on prices and walked away with a check. I then used the proceeds to payoff the loans. I seem to recall that the dealership helped with the paperwork.

I doubt BMW Financial Services will allow anyone to assume the loan. You should check your paperwork or just call them to find out.

In my case my company refunded money to me to cover some of the loss I took on selling both cars at short notice. It was included as part of the move package.

[N55_BBM]

I'd love to ship the car but unfortunately it is illegal to do so to Brazil. You can only ship brand new cars or collector cars (15+ yrs old). There's an absurd import tax. So you have an idea, the 135i which cost me ~$40k here would cost me about $180k there. They're upping the taxes on imported cars this week by another 30% to protect domestic manufacturing, it's ridiculous.

I don't have anything as collateral.. I'll call BMW FS to see what the way to go is. Might have to somehow borrow $21k from the old man, this is going to suck big time.

[N55_BBM]

Just so it's clear, I think I can still sell the car for 33-34k though (2011 6sp 135i with sports pkg and 17k miles). There's little to no supply of 135's in the area and they go for at least that unless you're looking at an 08 with upwards of 25-30k miles.

So I still have about 12k or so of equity in the car..

[Kamal]

ok... I have no idea how much you're car is worth but let's say you sell it privately for $30k.

Buyer provides you with $30k, you pay off BMWFS with $21k, pocket the $9k, sign the title over to the new owner, and provide a bill of sale (use your states DMV website to find a form).

Pretty simple, not sure why some of you guys are making this out to be harder than it is. When you call BMW FS ask them how they handle private sales, loan pay offs, title transfers, etc.

[Pangloss]

You must have had a good turn-in or large down payment... Which I guess isn't really equity so much as "money that's already yours", but it sure helps with your current situation.

[N55_BBM]

Yeah I put down like $14k I think

Called BMW FS. They can do a person to person loan transfer if the buyer is credit worthy. Alternatively, if they're paid with a certified bank check it takes a week between that and me getting the title. The representative suggested either the buyer can pay them (in which case I'd provide a notarized bill of sale for him/her and then transfer the title over once it arrives), or I could pay for it myself. For wire transfers and personal checks it takes them about a month to process though.

I don't have much experience selling cars, but is this a normal procedure? Even with a bill of sale I'd be nervous handing someone $30k and not having the title in return.

[Kamal]

Originally Posted by N55_BBM

Yeah I put down like $14k I think

Called BMW FS. They can do a person to person loan transfer if the buyer is credit worthy. Alternatively, if they're paid with a certified bank check it takes a week between that and me getting the title. The representative suggested either the buyer can pay them (in which case I'd provide a notarized bill of sale for him/her and then transfer the title over once it arrives), or I could pay for it myself. For wire transfers and personal checks it takes them about a month to process though.

I don't have much experience selling cars, but is this a normal procedure? Even with a bill of sale I'd be nervous handing someone $30k and not having the title in return.

Yes, this is completely normal. If anything, have the buyer pay BMW FS and provide a notarized bill of sale. This way you have a 3rd party handling the payment and a legal document to affirm the sale. I've privately sold my last 3 cars so I'm not talking out of my ass.

[N55_BBM]

Would I hand the car over upon receipt of the check and notarization of the bill of sale or would I hand it over after the title gets transferred?

[Kamal]

Originally Posted by N55_BBM

Would I hand the car over upon receipt of the check and notarization of the bill of sale or would I hand it over after the title gets transferred?

that should be decided between you and the buyer, whatever you guys feel most comfortable with. I see no issue in handing over the keys upon verifying the funds (not just a check, but a cashiers check or wire transfer that BMWFS can verify the availability of funds with) and completing a notarized bill of sale.

[b00st]

Like Kamal is saying, this isn't very hard at all. I've sold my last 2 cars privately to out of state buyers, and bought my 135 from half way across the country. Since bank checks usually take a few days to clear, I usually have the buyer send me the payoff check ahead of time so it will clear by the time they get here, and then have a verified bank check with them for the rest of the amount when they arrive to pick the car up. You can have your own bank contact their bank to verify funds, and in my case they have waved the check hold and put money in my account on the spot in these cases. Wiring funds is also an option that can eliminate check holds. It really comes down to being comfortable with the buyer honestly. If anything feels weird about a buyer, just walk away and find someone else instead of getting screwed. Just make sure you do your homework, and call their bank yourself if necessary to verify the person and that they are getting a loan for your car(if they are financing). If the person is local to you, obviously all of this is much easier, since you can walk into their bank with the person buying the car and verify everything is cool in person. Shady people will become quite apparent when you ask them to verify things usually.

[Kamal]

Originally Posted by *****

Like Kamal is saying, this isn't very hard at all. I've sold my last 2 cars privately to out of state buyers, and bought my 135 from half way across the country. Since bank checks usually take a few days to clear, I usually have the buyer send me the payoff check ahead of time so it will clear by the time they get here, and then have a verified bank check with them for the rest of the amount when they arrive to pick the car up. You can have your own bank contact their bank to verify funds, and in my case they have waved the check hold and put money in my account on the spot in these cases. Wiring funds is also an option that can eliminate check holds. It really comes down to being comfortable with the buyer honestly. If anything feels weird about a buyer, just walk away and find someone else instead of getting screwed. Just make sure you do your homework, and call their bank yourself if necessary to verify the person and that they are getting a loan for your car(if they are financing). If the person is local to you, obviously all of this is much easier, since you can walk into their bank with the person buying the car and verify everything is cool in person. Shady people will become quite apparent when you ask them to verify things usually.

Exactly. Once you begin to communicate with potential buyers it becomes evident who you can feel comfortable with and who you can't. I wouldn't mention the title being held, loan payoff process, etc. until you and the buyer have settled on a price and begin to iron out the details. Let them see the car first, fall in love with it, chat them up, etc. before worrying about the numbers.

[Barry45RPM]

Originally Posted by Kamal

ok... I have no idea how much you're car is worth but let's say you sell it privately for $30k.

Buyer provides you with $30k, you pay off BMWFS with $21k, pocket the $9k, sign the title over to the new owner, and provide a bill of sale (use your states DMV website to find a form).

Pretty simple, not sure why some of you guys are making this out to be harder than it is. When you call BMW FS ask them how they handle private sales, loan pay offs, title transfers, etc.

Some states hold the title to a car that is being financed untill it is paid off and the lender then tells the state to mail the title to the borrower. In those states the title is issued at its inception with NO leinholder, ie a clear title, that is why the State holds it, so the borrower can NOT transfer the title to a cars 2nd purchaser with that title showing no leinholder on it.

When you sell a car in one of those states, technically speaking, you must give the buyer a bill of sale, he goes with you to the leinholder and gives them the payoff amount, they send him the title & he can then register it. In FL where I now live, Titles are issued/printed on demand at many (officially licensed) title & tag (plate) stores throughout the county on demand.

Other states issue a new car title with a leinholder printed on it a few weeks after new car purchase and a car owner can sign it over on the back when he gets paid by the buyer. Its the buyer's responsibility to be sure the seller has paid off the loan and gotten a lein release form which is then mailed away to the state DMV with the old title to then get a new title with no leinholder on it.

Long story short... he has no title to sign over since he has no title. Basically he has to pay off the loan first to get the title to sign over to the new buyer or he can go to the lender/lenders agent with the buyer then get the title to sign over. Its an overly Complicated & backward way to Title cars.

[DriveHard]

Hey Bruno..

sorry to hear that you are leaving... Call FS.. its not like this has never ever been done before, they will give you the answers..

BTW since you think you are upside-up in this thing you just may want to try car-max youll be amazed at what they offer.. The used car market is where it is at, espically a 1+ year old car like yours with full warranty..

on the same note,, try the dealer they may be hot for it also.. keeps all the b/s out of it.. to me that would be worth 1k for instant gratification.

p.s. I would offer to buy your car, but i need another car like a hole in the head..

Good luck!!! keep in touch !!

Regrads,

Alex

[jkoral]

This is why sellers list cars as "title in hand". It's much easier to buy a car with a clear title that can be signed over when you hand over the check and get the keys.

Not many folks like handing over $30K+ and not getting a title, especially if their state requires the title to register the car.

Yes, it is done all the time, but it is still a pain in the ass.

[LOVEM]

Originally Posted by N55_BBM

Hey guys, I've had my 135 for 15 months now and will probably be selling it within the next month or two due to very likely overseas move. It's financed in 5 years (another 45 months to go, about $21k premium left).

Never had to deal with financing before.. what's the best (or easiest?) way to do this?

Would the buyer just take over the loan and pay it off (or not) himself, and give me the rest in cash? If so, how is the whole title transfer done since BMW Financial Services actually holds the title?

I don't have $21k available to pay off the loan and then sell it.. I could theoretically get a bank loan to pay the car off and then sell it and pay that loan off with my sale money, but this seems very bureaucratic and I'd probably loose a lot on transaction fees and interest?

Any insight from those of you with experience will be highly appreciated!

how much is the selling price since i m looking for 1,

[slim_e90]

The other thing to consider is if the buyer is financing and not paying cash. In that case their bank will likely need the title to release the funds, or their bank will work directly with BMWFS I believe.

This should be doable and both you and the buyer should be fully protected. Good luck.

[burton727]

Depends im not sure if you mentioned who you are financing the car with?
BMWFS im going to assume, all you have to do is find your buyer and set
up an appointment with your SA at your BMW dealership, they will handle it.
and assure the title gets to the new owner, this is what they told me to do anyways.

hope it helps

[N55_BBM]

Originally Posted by LOVEM

how much is the selling price since i m looking for 1,

PM'ed


And yes it's financed through BMW FS

[sjp3003]

I just did this in August....sold my G8GXP on Ebay for $34K (having a $19K loan balance) & got a $500 paypal deposit. My credit union was holding the title. The buyer was financing through his credit union. The two credit unions spoke and simply agreed on the payment and transfer of title procedure.

In this case the buyer flew to MD from TX and checked out the car. Payment was received and the buyer was entrusted with the title (to deliver to his credit union).

[tracer bullet]

Originally Posted by N55_BBM

Called BMW FS. They can do a person to person loan transfer if the buyer is credit worthy.

Bastards. They told me they didn't do that. It was hard to believe but that's what they said. I have to think they really do, so thumbs up if they can for you to give you that option.

When I bought my car through an ad on the forum here, essentially what happened was the seller (Toni - great guy) paid the loan down to the agreed upon price, my bank sent BMW FS a check, and BMW FS sent my bank the title. There was a lot of paperwork and details of course but my bank handled all of it and just kept us both updated on what we needed to do next. We didn't think we'd be able to do the deal but it turned out to not be too bad.

Make sure you allow plenty of time to get a transaction done - it can take up to several weeks.