Best Way to Sell a Car with a Lien

**TigerGirl1226** · 11-16-2011, 11:58 AM

Last year we finally had to buy DH a car. We got him a Ford Focus. We have a note $188 and a balance of roughly $6200. His dad just passed away and he will be getting his car. It's newer, nice and will be paid off!

Neither of us has ever sold a car. Any strategies or advice? Also, what is the best way to sell it given that it has a lien?

Thanks in advance!

**pammy** · 11-16-2011, 12:51 PM

Is the company that holds the lein nearby by chance?

**TigerGirl1226** · 11-16-2011, 01:10 PM

Nope! Originally we were with a bank that is local, but the loan was sold.

**pammy** · 11-16-2011, 01:23 PM

Hmmm... it's been a while, but here's what we did: we put it up for sale, when you find a buyer, sign the title over to them, they have the title. Pay off note to whoever has the lien. Either you can have them mail the lien release directly to them or they'll send it to you and you can mail it to them. I would ask them what they would prefer. Have never had anyone have an issue with a lien, most vehicles nowdays have one. Sometimes the new buyer can send the funds directly to your lienholder, if they have an issue releasing funds directly to you. Call your lender and ask them how they like it handled, if nothing else.

BTW, gratz on your new wheels!!

**ncblazek** · 11-19-2011, 12:40 AM

Usually if you have a note against the car, then the bank has your title. We ran into this a couple months ago when we started dumping debt. We sold a car for $7200 and the bank had the title due to a $1200 note. What we did is explain to the buyer the situation and we agreed that hed pay me the amount and he'd take the car and the signed title would be sent certified mail as soon as I got the title from the bank.

We also printed off this agreement and both signed it so that if either of us wanted to back out of the deal, this signed document would be pretty incriminating if it was presented.

All in all, it worked out pretty well and we dont regret it, though I do miss the 04 Civic...

It was sold on Craigslist...Heres the trick... Do not be in a hurry to sell. If someoen makes an offer that you don't like, don't sell it. I had several 6700 offers and ultimatly sold it for $7200 (300 less than asking but 200 more than my minimum)

Good Luck!

**mh3rdwheel** · 11-20-2011, 08:24 PM

Originally Posted by TigerGirl1226

Last year we finally had to buy DH a car. We got him a Ford Focus. We have a note $188 and a balance of roughly $6200. His dad just passed away and he will be getting his car. It's newer, nice and will be paid off!

Neither of us has ever sold a car. Any strategies or advice? Also, what is the best way to sell it given that it has a lien?

Thanks in advance!

First off who's name is the lien in, then you said that you have a note $188 and a balance of $6200? Exactly what do you mean, did you pay your fil $188 and take over the loans? A friend of mine received a car from her dad, she made payments to him, then he died and the estate took the car off her to settle his estate, also she lived in the house he lived in and now it is being forclosed on this Friday.

**mjhjea** · 03-25-2012, 12:11 PM

OK, first off, can you pay it off and get the title? This is the easiest way. It will need to be notarized and witnessed that you are the seller and a selling price entered. Be careful that the buyer doesn't talk you in to putting down a really low price so they can save on the tax when they transfer ownership. I'm not going to tell you to put down a price other than what you sell for, but I will say that it should be reasonable for the year/model or the BMV will question it. ie. $4,500 for a 2010 Mercedes wouldn't fly. Kelly Blue Book value will give you a rough idea on value. If you can't pay it off, then it becomes a little more of a hassle. Talk with your lien holder (bank) to work out details if the buyer has to finance the purchase. If the buyer has cash, this process will be much easier. Key is good communication with the buyer. Write a good description of vehicle in your add with key words such as: one-owner, low mileage, non-smoker, all service records, etc. Lastly, be careful if they are paying with cashiers check. A lot of forgery occurs. Treat like a personal check and don't release title until money clears your bank. You can write up your own signed agreement with the buyer or have the bank assist you with something so the buyer is comfortable leaving without the title in hand. Then mail it to him. Good Luck