How to cover my bases in selling car to dealer outright...

[mjr24]

I’m selling my AMG GT. I still owe like $93k on it and I’m selling it for $76k (I unfortunately bought when prices were high).

The guy buying it from me works at a dealer (but this is going to be his personal car). I’m not trading this car in….I’m literally selling it to them. He said they can pay off the loan and I can cut them a check for the $17k difference between what is owed to the bank and what I’m selling it for. They are out of state so they would be having a shipper come get it and bring it back to them.

What do I need from them to cover myself here? In other words, do I wait until they pay off the loan before I let the shipper pick it up or ?

I’ve sold cars to dealers when I had the title in hand and it was paid off (they just cut me a check before the shipper came) but I’ve never done this on a car with a loan out still.

[MJBO]

I would have thought the buyer would pay the finance company the amount they’re offering you, and you pay the finance company the rest.

Is it the dealer buying the car off you, or is it actually just the employee buying off you directly?

[Rob_G77]

Well, make sure the guy is legit. Scammers could pretend to pay off your car with a fake check, take the car and then later you find out the check was bad.

Rob

[TheDrivenGarage]

That sounds right. You will sign a bill of sale showing they are paying you X and you are giving them Y and they are paying the bank Z. It should all be layer out in the bill of sale. Even better if this is being done in the dealer name, as no dealer is going to risk their license to scam a consumer. You are so protected as a consumer with dealers. They should be sending you a packet to sign of docs for things like odometer statement, power of attorney to transfer title, etc. If you are NOT getting that paperwork before shipping... then something is off

[mjr24]

Originally Posted by MJBO

I would have thought the buyer would pay the finance company the amount they’re offering you, and you pay the finance company the rest.

Is it the dealer buying the car off you, or is it actually just the employee buying off you directly?

So I believe the dealer is technically buying it as this guy sold his C8 but wanted it on there to basically use it as a trade for sales tax purposes (so I’m assuming technically the dealer also sold his C8).

[mjr24]

Originally Posted by Rob_G77

Well, make sure the guy is legit. Scammers could pretend to pay off your car with a fake check, take the car and then later you find out the check was bad.

Rob

Oh, for sure. He definitely seems legit…..I Googled him and he does work in sales for a Ford dealer.

[Westside Guy]

Originally Posted by mjr24

Oh, for sure. He definitely seems legit…..I Googled him and he does work in sales for a Ford dealer.

If you Googled his name before he was arrested you would have seen that Bernie Madoff was the head of a major investment firm.

I would make sure everything is being done in the dealer's name.

[chassis]

Originally Posted by mjr24

I’m selling my AMG GT. I still owe like $93k on it and I’m selling it for $76k (I unfortunately bought when prices were high).

The guy buying it from me works at a dealer (but this is going to be his personal car). I’m not trading this car in….I’m literally selling it to them. He said they can pay off the loan and I can cut them a check for the $17k difference between what is owed to the bank and what I’m selling it for. They are out of state so they would be having a shipper come get it and bring it back to them.

What do I need from them to cover myself here? In other words, do I wait until they pay off the loan before I let the shipper pick it up or ?

I’ve sold cars to dealers when I had the title in hand and it was paid off (they just cut me a check before the shipper came) but I’ve never done this on a car with a loan out still.

Call the (finance) company that holds your loan and ask what they recommend.

edit: one scenario is for the dealer to pay $76k to the lender, and you write a check for the remaining amount to the lender and give it to the dealer who will send sufficient funds to the lender. So you bring the keys and a check to the "sale" appointment at the dealer. The lender is presently holding the title, and the lender will send the title with lien released to the dealer.

Is the dealer charging you fees for this transaction or are the fees baked into the offer price?

[tracer bullet]

Originally Posted by mjr24

They are out of state so they would be having a shipper come get it and bring it back to them.

Obviously this happens a lot for legit sales and purchases, but - can you not find anyone more local to buy the car at a similar price? And is it shipping a long ways away (CA, FL) or somewhat closer (Chicago)? Using those as examples because under your name says you are in WI. If it's Chicago for example maybe it's time for a road trip to do it in person. At a dealer or even in a bank.

[c1pher]

If they are legit, you give them the check and they handle the payoff. You will probably receive a small amount back from the bank for overpayment to cover potential per diem.

[mjr24]

Originally Posted by tracer bullet

Obviously this happens a lot for legit sales and purchases, but - can you not find anyone more local to buy the car at a similar price? And is it shipping a long ways away (CA, FL) or somewhat closer (Chicago)? Using those as examples because under your name says you are in WI. If it's Chicago for example maybe it's time for a road trip to do it in person. At a dealer or even in a bank.

Not an option to do this in person….

[mjr24]

Originally Posted by c1pher

If they are legit, you give them the check and they handle the payoff. You will probably receive a small amount back from the bank for overpayment to cover potential per diem.

But do I need a bill of sale from them before I let shipper pick the car up? What’s to stop them from getting the car to Pennsylvania and then changing their mind before paying off the bank? I don’t think that would happen but I’m just running through all scenarios.

[Rafichicago]

I would not under any circumstances let the car out of my possession until loan is paid off. You can possibly depending on the bank have them Mail title to whoever purchased the car. I’ve done this with motorcycle. The owner owed more than I paid for it and had financial institution mail title to me. Under no circumstances let the car off your lot before the loan is paid. If not possible sell it to someone else.

[c1pher]

Originally Posted by mjr24

But do I need a bill of sale from them before I let shipper pick the car up? What’s to stop them from getting the car to Pennsylvania and then changing their mind before paying off the bank? I don’t think that would happen but I’m just running through all scenarios.

Yes and maintain all correspondence with the dealer. You will probably also need to keep the insurance on the car. Take photos or make a video of the car's condition at pick up so they can't say you sent them a damaged vehicle.

Also ask what the car carrier needs for paperwork and if they offer tracking capabilities. Many of them do. I watched my 911 travel from Florida to Virginia the whole way and had their phone numbers in case I needed to call the driver which I did as we were trying to make sure we found one another since he couldn't unload where we originally planned.

[tracer bullet]

Originally Posted by c1pher

... had their phone numbers in case I needed to call the driver which I did as we were trying to make sure we found one another since he couldn't unload where we originally planned.

Great point. I bought a car this way once, from a member on the forum. Overall the whole thing worked out well, but yes at the end the transporter couldn't make it quite to my neighborhood (road restrictions). I biked to meet him and then threw my bike in the trunk afterwards. If the transporter didn't luckily have my phone number I'm not sure what we'd have done.

Maybe in 2023 this kind of ability to contact people is assumed, but yeah, it's worth checking on, and maybe even having more numbers than needed. Heck as the seller put your own info on the outside somewhere, i.e. masking tape a piece of paper to the windshield.

I know it doesn't answer the original question but if generally looking for advice - I think it's a good item for the list.

[mjr24]

Originally Posted by Rafichicago

I would not under any circumstances let the car out of my possession until loan is paid off. You can possibly depending on the bank have them Mail title to whoever purchased the car. I’ve done this with motorcycle. The owner owed more than I paid for it and had financial institution mail title to me. Under no circumstances let the car off your lot before the loan is paid. If not possible sell it to someone else.

But when you trade a car in...it's no different. The dealer still has not paid the car off, yet.....and normally they take weeks to do so after.

[mjr24]

Originally Posted by tracer bullet

Great point. I bought a car this way once, from a member on the forum. Overall the whole thing worked out well, but yes at the end the transporter couldn't make it quite to my neighborhood (road restrictions). I biked to meet him and then threw my bike in the trunk afterwards. If the transporter didn't luckily have my phone number I'm not sure what we'd have done.

Maybe in 2023 this kind of ability to contact people is assumed, but yeah, it's worth checking on, and maybe even having more numbers than needed. Heck as the seller put your own info on the outside somewhere, i.e. masking tape a piece of paper to the windshield.

I know it doesn't answer the original question but if generally looking for advice - I think it's a good item for the list.

Yeah, he is only 8 hours away so I'm not too worried about tracking it....it's going from basically Milwaukee to the Ohio-Pennsylvania border. Trust me, this guy wants this car quick so I am pretty sure he is paying it immediately once it gets there.

He said he is sending me a purchase order on the dealer's company letter head (and it's signed by the GM).....I'm not too worried at this point.

He would be astronomically stupid to try anything...

[Rafichicago]

Originally Posted by mjr24

But when you trade a car in...it's no different. The dealer still has not paid the car off, yet.....and normally they take weeks to do so after.

The way i understand that is that is OPs friend is buying it Or something but it’s going through the dealer someone’s picking car up it’s kind of awkward situation that I might not be fully understanding. I don’t see how dealer would purchase the car and than pass it by to its employee… without a chance of making profit itself… well anyway that was my take on that nothing more nothing less.

[Rob_G77]

Originally Posted by mjr24

But when you trade a car in...it's no different. The dealer still has not paid the car off, yet.....and normally they take weeks to do so after.

A dealership can't take weeks to pay off a trade. If they did that, the customer would be stuck with additional interest charges that were not part of the buyout. They usually call to get a buyout price which is valid for 7 days I think. Pending payments and interest are factored in on the buyout.

Rob

[jkoral]

Originally Posted by Rob_G77

A dealership can't take weeks to pay off a trade. If they did that, the customer would be stuck with additional interest charges that were not part of the buyout. They usually call to get a buyout price which is valid for 7 days I think.

Not a dealership, but when I sold my car to CarMax the loan was not paid for 3+ weeks. I was surprised, because I would have thought the pay off amount would change.

I made a mention of it when getting another loan from the same institution (Credit Union), that I had already turned in the other car, even though from their perspective it showed a balance.

[mjr24]

Originally Posted by Rob_G77

A dealership can't take weeks to pay off a trade. If they did that, the customer would be stuck with additional interest charges that were not part of the buyout. They usually call to get a buyout price which is valid for 7 days I think. Pending payments and interest are factored in on the buyout.

Rob

They absolutely can.....which is why all dealers and Carmax, etc. tell you to keep paying your loan until it's been paid off. Maybe it's different in Canada but it's pretty common here. Yes, most do pay it right away......but I've heard of some places taking a bit longer. This guy will pay it right away, though, because he wants the title. Basically the dealer is buying my car at this point and then selling it to him is the best way to sum this all up. If this were some small used car dealer then I might still be hesitant but not really worried about a Ford dealer doing this.

[tracer bullet]

Originally Posted by mjr24

Basically the dealer is buying my car at this point and then selling it to him is the best way to sum this all up.

Sounds like you're good to go.