[adr1974]

Sorry for the rookie question -- I've searched around and can't find a clear answer, so any help is appreciated. I'm selling my car, which was financed through BMWFS, and has not yet been paid off in full. A potential buyer asked me if I had title in hand. While I do have the physical title, I'm assuming that I can't simply sign the title over and then use the proceeds of the sale to payoff the loan...or can I? Any help is appreciated.

Thanks in advance,

A

[MassBimmer]

If the car is not paid off, how do you have the physical title in hand? BMWFS should have the physical title if the car is not paid for

[adr1974]

My Maryland Certificate of Title lists my name and address under the 'registered owner' section, and near the bottom of the title it lists BMWNA as one of the secured parties.

[TailHappyM3]

that secured party will have to give you a `release of interest` letter to attach to that title once you pay off that loan first.

[VTECaddict]

I think you need to pay off the car first to release the lien, then you can transfer the title to a new owner.

[adr1974]

Appreciate the response. So I have enough cash in hand to pay off the loan, but what would someone do in the event that they wanted to use the money from the sale to pay off the debt?

[TailHappyM3]

Originally Posted by adr1974

Appreciate the response. So I have enough cash in hand to pay off the loan, but what would someone do in the event that they wanted to use the money from the sale to pay off the debt?

What do you mean here?

[adr1974]

Say the seller didn't have enough money in the bank to first pay off the loan, and intended to use the proceeds from the sale for this purpose. How would they sell the car to a third party?

[Bulldog 6]

Originally Posted by adr1974

Sorry for the rookie question -- I've searched around and can't find a clear answer, so any help is appreciated. I'm selling my car, which was financed through BMWFS, and has not yet been paid off in full. A potential buyer asked me if I had title in hand. While I do have the physical title, I'm assuming that I can't simply sign the title over and then use the proceeds of the sale to payoff the loan...or can I? Any help is appreciated.

Thanks in advance,

A

No the car belongs to BMWFS. If you owe 10k and sell it for 15k the 5k goes to you and the 10k goes to BMWFS. Once BMWFS gets the 10k they send the title to buyer or buyers financial institution. The financial instition will give you the 5K on spot. I recommend the buy use a finacial instituion even if they finance and pay off the loan entirely the first month...that way the bank does all the paperwork for free and you don't have to figure out if you did all the correct paperwork for your state. Talk to BMWFS to see what they require first.

[adr1974]

Thanks for your help everyone.

[noro]

Originally Posted by adr1974

Say the seller didn't have enough money in the bank to first pay off the loan, and intended to use the proceeds from the sale for this purpose. How would they sell the car to a third party?

There will be a window of time when the buyers will give you enough money for you to receive the title and then sign over to the buyer and get paid the remaining amount.

[cb1111]

Originally Posted by noro

There will be a window of time when the buyers will give you enough money for you to receive the title and then sign over to the buyer and get paid the remaining amount.

Ahhh - no. No seller is going to hand you money and hope that you're honest enough to pay off your loan and get the title - even car dealers sometimes stiff their customers on trades by failing to pay off the loan in a timely manner.

Maryland is a bit odd in that the registered driver gets something that looks like a title but really isn't as it shows the lien holder. You'll either need the actual title or a letter of release.

How do you sell a car if you don't have the funds to pay it off?

You need a trusted third party - often a bank - to do the two parts of the transaction - paying off your loan and giving the seller the remainder.

Some banks will do an interim personal loan but selling a car without a title isn't always easy. I always pay them off before I sell my cars so that I have the title in hand.

[tazzy1]

have the buyer cut the either 2 checks one to BMWFS for the balance of the loan payoff and 1 to you. Or 1 to BMWFS and they will cut you a check for the difference.

Done this more than once. It's very simple.

[deletedelete]

Originally Posted by tazzy1

have the buyer cut the either 2 checks one to BMWFS for the balance of the loan payoff and 1 to you. Or 1 to BMWFS and they will cut you a check for the difference.

Done this more than once. It's very simple.

Yeah is simple. Two checks, one to bmw, one to you if there is money left over and thats it. Call bmw and tell them what your doing. Its quick and painless.

[noro]

Originally Posted by cb1111

Ahhh - no. No seller is going to hand you money and hope that you're honest enough to pay off your loan and get the title - even car dealers sometimes stiff their customers on trades by failing to pay off the loan in a timely manner.

Maryland is a bit odd in that the registered driver gets something that looks like a title but really isn't as it shows the lien holder. You'll either need the actual title or a letter of release.

How do you sell a car if you don't have the funds to pay it off?

You need a trusted third party - often a bank - to do the two parts of the transaction - paying off your loan and giving the seller the remainder.

Some banks will do an interim personal loan but selling a car without a title isn't always easy. I always pay them off before I sell my cars so that I have the title in hand.

I guess this is per state. You need to present an old tile in our state to get plates. Otherwise it will take you 4 weeks to drive the car off.

[adr1974]

Guys -- thanks again. I'm going to go with the one check solution (no need for buyer to know what I owe BMWFS). I sign over the title I have (which is an actual title), and BMW forwards a lien-release note to the buyer and sends me the balance.

[aesfah]

Originally Posted by adr1974

Guys -- thanks again. I'm going to go with the one check solution (no need for buyer to know what I owe BMWFS). I sign over the title I have (which is an actual title), and BMW forwards a lien-release note to the buyer and sends me the balance.

As previously mentioned, the "title" you have is not a full title, in the sense that you can't sign it over to the buyer and make him/her the new owner. After paying off the loan, you will get a release document from the BMWFS, which you take to the MVA to get a "clean" title, which you can then sign over to the buyer.

But your problem is that you have a balance on the loan and want to use the proceeds of the sale to payoff the account. As mentioned, you may use a bank as a third party, or if you have a trusting buyer, s/he can cut a check to you or BMWFS, who will take a week or two to send you the release note. It can be done, but it's really hard to find a trusting buyer.

I personally would never cut a 5-figure check to a stranger, trusting that a clean title will be delivered 2 weeks later. It's just not worth the hassle from a buyer's perspective. If you dont want to use a third party (bank) to conduct the transaction, take out a bridge(temporary) loan from your bank, get a cash advance from your credit cards (the interest accrued should be minimal if it'll be paid back in 1-2 weeks), or borrow money from friends/family if that's an option. GL

[adr1974]

I called the local BMW dealer, and spoke with someone in finance. He told me I could indeed sign that title over to the buyer -- all they would then need is the release of lien from BMW. As far as trusting someone with a five-figure check, I agree with you, but since the buyer's check will be made out to BMW Financial Services, I'm not quite sure why/how I would do anything nefarious.

[cb1111]

Originally Posted by adr1974

I called the local BMW dealer, and spoke with someone in finance. He told me I could indeed sign that title over to the buyer -- all they would then need is the release of lien from BMW. As far as trusting someone with a five-figure check, I agree with you, but since the buyer's check will be made out to BMW Financial Services, I'm not quite sure why/how I would do anything nefarious.

I wasn't even remotely thinking of you, but you'd be surprised at what people do. One of the other boards had a fairly lengthy thread about trying to buy a car. IIRC, the buyer gave the guy a check who promptly cashed it and then stole the car back one night. Since the seller still had the title (Honda actually owned it) the buyer had a hell of a time trying to get his money back - I don't think he did.

[PTinVT]

Tap your home equity to float the balance for the sale, that's what I do.

[khaye1]

I would go through the dealership and ask if they can do a "pass through" sale...meaning the dealership would buy your car from you and then turn around and sell it to your buyer...takes 30 min and you don't have to worry about any paperwork. Everything is taken care off, ie tags, release of liability etc. The drawback, some dealership charge anywhere from $200 to $500 some don't...it's a processing fee.

I've done it with Toyota and it was breeze...painless and I had the buyer pay the fee.

[TailHappyM3]

Originally Posted by adr1974

I called the local BMW dealer, and spoke with someone in finance. He told me I could indeed sign that title over to the buyer -- all they would then need is the release of lien from BMW.

This is correct.