Selling a car information

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lugNutz

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When selling a car to someone (I would imagine this is similar in every state), what is it that you need to pay for? I'm selling a car privately to someone I know, so I will be doing half payment now and the other half in a month. The best route I BELIEVE is to be the lien holder on the title until the other half is paid. It is better this way so I have the title if he doesn't pay me the other half, but does that mean I need to pay 2 title fees, or just the fee when I sign the title over after the other half is paid?

I want him to be able to plate the car immediately under his own name and get his own insurance, but I am also trying to not have him pay 2 fees on top of the plates. I've never sold a car privately, so if someone has better advice, help a fellow BITOG-er out lol.
 
cash on pickup 100%

unless its family member etc

if they will have the full amount in month they should be able to borrow it from a family member or something.

you arent a loan office.
 
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I do have better advice; delivery on full payment.

These scenarios frequently end in hurt feelings or worse. Make it easy on yourself and hand him the title and keys in exchange for cash or a bank check. If he'll have the money next month, he can wait and pay it all then.
 
This also happened to a friend of mine - same situation. He sold a truck to a friend of his for half now, the other half in a month. What it turned into was a year of promises and no money. Finally, my friend and I "repo'd" the truck in the middle of the night. What he got back was a beat up truck that was ready for the junk yard.
 
+100 on the advice above.

"You know, that car you sold me..........."
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I'll trade you a real nice boat for the car. It's sitting at the bottom of a lake right now but "should" float back up to the top once the ice melts. It's all yours once the weather warms up.

On a serious note, if you have to repo the car it will probably only be worth scrap value. Which is about $400.

Tell him if he has the money in a month the car will be there waiting for him.
 
Originally Posted By: Rand
cash on pickup 100%


you arent a loan office.


+1 -> I don't buy or sell any vehicles privately any other way and that includes 5 figure amounts. As a result I don't have any nightmare stories to tell.
 
Originally Posted By: lugNutz
The best route I BELIEVE is to be the lien holder on the title until the other half is paid.

As others said, the best route, and only route, is to get 100% payment upfront. Clean trade - full payment for clean title and keys. Don't even think of doing it any other way as it won't end well.
 
If they don't have the money now, they likely won't have it later, either. Don't let them have it without paying for it, unless you're a buy here-pay here lot (which usually means getting your cost upfront & profits via weekly payments, or a repo).
 
Full negotiated price in cash at the time the title is signed over.

That's it.

Any payment schedule is liable to leave you holding the bag, seriously. Try it. While you're waiting for the second half, you get the call from the buyer, "Hey, YOUR car broke down, I want my money back."

Save yourself the hassle.
 
Hello lugNutz, It's all true. 100% cash on delivery. All of that business of titling a car with you as a lien holder is a waste of time, effort and money.

EXAMPLE #1: $2,000 car. You get $2,000-your friend gets the car.
EXAMPLE #2: $3,000 car. You get $3,000-your friend gets the car.
EXAMPLE #3: $1,000 car. You get $500 AND his scoped hunting rifle (and reloading equipment) you've been coveting AND his new battery powered drill kit AND his fishing rod and reel AND his flat screen TV-your friend gets the car.

Honestly. A friend of mine is always trying to do nice things like this for people and everyone has been telling him FOR YEARS that he's foolish.

Sell him the car or give him the car. Don't stretch anything into the future. That'd be bull-fertilizer.

From my Grandma (born in 1899 in Arkansas) "Short term accounts make long term friends." Kira
 
If there has to be a loan here anywhere, have the buyer get a loan from his bank/savings & loan and have him pay you in full.
A lien on a car? That means nothing if he crashes it, has it stolen, or "forgets" to pay you.
 
If you hold the title you maybe liable for the vehicle in case of accident etc. I think every state is different, I had an insurance co come after me a few years ago because the vehicle I traded in was still under my name and got in to an accident after I sold it, even though I signed the title and handed it over to the dealer. Basically in FL the buyer should initiate the title transfer at the DMV but as a seller you should go to the DMV fill out release of liability form. Go to the DMV and ask how the selling process is in IL, make sure you rear end I covered, I speak from experience.
 
Originally Posted By: Bandito440
I do have better advice; delivery on full payment.

These scenarios frequently end in hurt feelings or worse. Make it easy on yourself and hand him the title and keys in exchange for cash or a bank check. If he'll have the money next month, he can wait and pay it all then.


Agreed 120%. Lots of bad things can happen in the scenario you describe, and the bad will all blow your way.
 
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