We bought a car and instead of financing it with the dealer we did it with State Farm where we are insured. Now they tell us to sell to individual, it's not paid off, we have to get money from buyer and mail it to them. Nobody in their right mind would do this. Does anyone know of a way to sell this car now? We learned a lesson about financing this way I guess. But too late.
Thanks.
EDIT:
What I mean is if someone wants to buy it and would give you cash we used to go to the bank with them and get it all done free and clear there with a notary. If selling on Craigslist I would think it would be the same problem unless paid off by us first, right?
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I may not be the brightest crayon in the box but this all sounds like any loan company to me. I didn't know it was possible to sell a car unless you have the title; UNLESS you have a way for the person buying the car take over the loan payments. Either way, it all has to be approved by the bank/loan company.
Good luck!
Pay off the car and then sell it.
It's not that odd. The loan company want their money before they'll give up the title.
I don't think even your bank would give you the title to the car until the loan is paid off. You might have been able to have the buyer pay the bank to pay off your loan and then the buyer would get the title from the bank - but that still takes a few weeks usually.
So yeah, you're stuck... you have to pay off the car before you can sell it. Pretty much everyone selling a used car is in the same situation. Sorry!
PS. You can still trade the car in at any dealer if you're buying another car. They'll pay off the bank and get the title as part of the deal you make with them.
No loan holder is going to give you the title until its paid off.
So either list the car on Craigslist or similar, or trade it in ( you'll get less than if you sell to a private party).
Maybe I'm not getting this. Why would your lender be telling you what to do with your car? Is it getting repo'd?
The notary takes care of all of that--the payoff, the title transfer, etc!
I think even a bank would do that. You can't sell it until it's paid off. They technically own it until you pay them what they are lending you. So you have to pay them off to get the free and clear title to sell it to someone else. It should be the same no matter where you are going.
When we trade in cars, we still make payments through our bank until the dealership check arrives. Same thing.
