Selling a truck with a loan on it for more than you owe?

JohnDeereJimOhio · Jan 13, 2013

Hey all i wrote the other day that I bought a new truck, and was
trading in my old powerstroke... Well I pick my new truck up
saturday, and they offered me 8500 for trade in which was a
good trade in value but the truck was worth more than that.
Anyway I put it on craigslist for 10k and sold it, to the first guy
that looked at it. he is getting a loan for it.. My question is i owe
5800 on my truck so the difference is 4200.. How does his bank
handle this.. Do they pay the truck off and then give him the
money to give me? Or do I have to go get a check... Also im
using the money for my down payment on my new truck so i
dont want to wait on a check to clear for 5 days... If i go to his
bank they should give me cash right?? Any help on this is
appreciated... I have never not traded one in so idk how it
works...
Thanks,
Jim

retired farmer · Jan 13, 2013

His bank will call your bank and pay the loan off, then you will get what is left over, that is if the guy gets the loan.

JohnDeereJimOhio · Jan 13, 2013

He was already pre-aproved just has to go in and sign.. How will his bank pay me is my question?

Sean Feeney · Jan 13, 2013

I my State MA the sales tax is 6.25 that would come right off the trade in $500 plus dollars and we have lemon law or warranty and have to stand by that truck for 30 or 60 days plus you trying to figure how to get your money and pay it off that 10% increase becomes a pain in the ***

VicS · Jan 13, 2013

It has been a long time, and our bank is not a branch. But they would let me have the title, if I promised to pay them, and borrow the money for the new truck from them, and bring the new title in. Worse case is you can borrow the money on something else, to pay it off. Have bought stuff out of state and had to go to their bank and pay it off, to get title. Start early to do this,Saturday might not work.

Nathan (SD) · Jan 13, 2013

His bank puts his newly borrowed $10,000 in his acct. He writes you a check for the full amount of the truck. You deposit check in your acct. Bank gives you a lien waiver for the truck title. You give him the title and the lien waiver.Your bank takes money out of your acct to pay off your loan and the rest stays in your acct.

bobs old iron · Jan 13, 2013

nathan hit the nail on the head pretty much,, how his bank does paper work with them, isn't a problem for you ,,,as long as their bank or him gives you the bank check for the amount to deposit in your account to pay off, and bank the difference, will be all is needed...done it a couple of times myself..

JD Seller · Jan 13, 2013

How it is done around here is pretty simple. His bank gives him a certified check made out to you and the lean holder on your truck. You then have to go to your lean holder to be able to use the check. So you take the check to your bank/lender. They pay off the loan and then give you the balance. They will usually sent the title to the new lean holder/bank.

Does not make much difference if it is a truck or some other piece of equipment. It has been done that way for years.

Pops1532 · Jan 13, 2013

JD Seller nailed it. That's EXACTLY how it's done.

JohnDeereJimOhio · Jan 14, 2013

Talked to his bank this morning they said they will call my bank get pay off and pay truck off, remaining balance will be a check to me that will be the difference.. Said if I need cash just to bring it to them and they will cash it.. Was pretty easy definitely worth the extra 1500...

Selling a truck with a loan on it for more than you owe?

JohnDeereJimOhio

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retired farmer

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JohnDeereJimOhio

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Sean Feeney

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VicS

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Nathan (SD)

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bobs old iron

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JD Seller

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Pops1532

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JohnDeereJimOhio

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