Someone please help me with this.

I still owe roughly $17k on my current car. It's a little over one year old now.

The KBB trade in value is around $15,500. The private sale value is $17,500.

Now, if I privately sell my car, but don't own the title yet, how does that work? Does the buyer give me their check then I pay off my existing loan and then give them the title?

Thanks for any help!

 

Yup. That's how it works. Make sure you write a bill of sale and have it notarized on both ends so that nobody gets cheated.

 

then you run into the issue of: do you give him the car when he gives you the check and he agrees to wait on the title. or do you play it safe and give him everything at once all switched over in order to avoid him crashing the car or wanting his money back before the transaction is complete.

 

that is why you do what the #2 post says

 

no. a bill of sale doesn't fix what i just said.

 

easy-dont take checks. Certified funds only, then the both of you go to the lender location if there is one locally) and obtain a lien release-then to the DMV to sign title and remove lien and transfer to new owner.
If there is not a local lender location-let the cust know that you will need up to 10 business days (this is what the lender is allowed afer recving full payoff to fwd lien release card to you) to remove lien on title.

 

Just do what post #2 says, gezz making harder then it really is

 

yup this is what I had to do when I bought my evo. It was a PITA so say the least. The whole process of communicating with the bank, sending funds, clearing liens, releasing title, etc.. took over a month. It was worth it though in the end when I picked her up.

 

So we would go to one of these offices?


Payment/Payoff Address:
AMERICAN HONDA FINANCE CORPORATION
P.O. Box 7829
Philadelphia, PA 19101-7829

Dealer/Third Party Payoff Address:
Honda Finance Exchange, Inc *
P.O. BOX 70252
Philadelphia, PA 19176

 

You need to call your finance company... both of those are PO boxes.

Also verify if in NJ if you trade a car in, does the sale tax on the new car reflect the whole price of the car or the difference between the new and the old.

Here in Texas, the sales tax (6.25%) is computed using the sales price of the new car - the value of the trade in. In your case, a $16,000 trade in offer would be equivalent to a $17,000 personal sale because of the $1,000 sales tax benefit.

 

seller should not have to worry about sales tax (buyer may when he goes to title in his name)-as for the PO address, my guess is that is a different location then most (we are the same here in MN-dif locations for PO versus reg payment, location of titles, lien cards, ect).
I'd give Honda a call and see where they would like you to head too-but for the PITA it may be, my option will ensure both you and the buyer are happy in the end...speaking from the lender end

 

I didn't read any of the posts, but here is the answer:

I just did this buying my Evo. Have the buyer get a bank draft for the full amount, made out to both you, and the bank/finance company. This way it can only be cashed to pay off the loan that you have on the car. You immediatley give him the title, since a bank draft is as good as cash. Easy as 1-2-3

 

I assume that you're directing the sales tax issue to me, and you're right, but I was assuming the OP was buying a new car.

I always weigh my options when buying a new car whether to trade in or not. If I can get way more selling private party I do, but lately, the difference has been a couple hundred bucks after sales tax, so I don't even bother....

 

I was going to say check with your bank, because some will release the title to you for an amount of time (like 30 days) to sell the car. But it looks like you're financing through Honda, so I doubt they do that.

 

I might just trade the thing in... I work a lot and go to school full time so selling privately might be impossible since I would never have time to meet with the buyer.

Should I return my car to stock? I'd really just kind of leave it as is unless the wing depreciates it. Any input is much appreciated.