Selling A Car With A Loan On It

Dear Miss Mota Mouth,

I want to sell my car that has a lien on it. How does this work? Do I keep the car until I get the title from the lender? Will someone give me a check for a car that they cannot have right then?

Ben in Garden Grove

Once you have sold the car, received payment and are delivering the car you should both (buyer and seller) sign a sales agreement that states that you will be getting them the title by a certain date. A good Bill of Sale will protect you both. In order to facilitate this call the lender and ask how long it takes to process a lien pay off and receive a title and ask them how to do this the fastest.

You don't have to keep the car but you will need to keep the insurance on it until you are sure that it is transferred completely.

Don't take a check for the car unless you can go to the bank with them and make sure that you can cash it- there are too many fraudulent buyers out there! You could use an escrow service to help you out with the payment part and split the fee with the buyer.

Good luck!

M

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