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Selling a car when I still have a loan.


Johny Utah

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You find out what your payoff is (not the same as remaining balance), find out the payoff address, and send it there before the payoff quote expires. The title holder will release the title once the car has been paid off, and that's when you should give the car to whoever is buying it.
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The buyer can go with you to the bank that holds the loan and they will take the payment (amount to pay off the note) and you will get the rest. The bank will release the title to the 'new' owner once the paperwork is complete. If that person is getting a loan, your bank will transfer the title to the new lender. Happens all the time - your bank should be able to tell you what needs to happen and what their process is.

 

The easiest way is for you to just pay off the loan and have the title in-hand. For some people, this isn't an option. If it is - do it this way! No question when you have the title - person gives you cash (or meet at their bank and get cash - I don't do checks of any kind...) and you give them (the bank) the title. Easy. :)

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One other thing to consider, banks in Ohio don't physically keep a title on hand anymore, it is all done electronically. Once the loan is paid off, if you want a physical title, you will need to go to your local title bureau with your info from your bank saying that the lien was paid and pay $15 for it, even though you paid for a title when you bought the car, and it came with one from the seller or dealer you bought it from, you get to pay for it again. One of Ohio's many new ways to generate revenue, they sent letters to the banks about 5 years ago telling them that they HAD to do this.

 

If you owe money, it is actually easier for the buyer to secure a loan, and have thier bank pay your banks electronically for the vehicle, I've done it that way on several occasions, it works flawless for out of state purchases.

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