Find Out What Your Trade
Dealers use a variety of different references to determine what your used vehicle is worth. They can use the Black Book or Blue Book to find wholesale values. To get a good idea of what they might offer you, its best to use an industry guide like Kelley Blue Book to find out what your trade-in is worth. Youll need to know the vehicle make, model, mileage and condition. KBB says that about 54% of trade-in vehicles qualify as good condition. Here are the four most popular industry guides for vehicle appraisal. The first three are free for the public to use online. Black Book is an industry guide that dealers can access for a fee.
When youre trading in a car, the dealership that trade to will not be offering any more than the rough- to average-wholesale price for the vehicle, says Steve Lang, a longtime auto auctioneer and car dealer out of Atlanta who co-developed the Long-Term Quality Index. Expect the dealer to offer a low value, and aim to get at least trade-in value for your car. The only common reasons you wouldnt be able to get trade-in value are if your car was in a major accident or if it has a salvage title.
Whats my truck worth?
You could use the same industry guides listed above to find out what your pickup truck is worth. But if youre wondering how much your truck is worth and you have a commercial vehicle, you could:
Selling A Vehicle With A Lien
When you are buying a car using a car loan or a different type of financing from some financial institution, the name of the lender is the titleholder, which means that you dont own your vehicle until you pay off your loan. A lien has a legal right to a property that is granted to the creditor, and that property is acting as a guarantee if an obligation like repayment of a loan on a car, and if that obligation is not met, the creditor has the option to seize the object that is the subject of the lien agreement.
When the full loan is paid, the lien name is removed from the title and is replaced with the name of the legal owner, and the owner may decide to sell their vehicle with the completed the documentation. But a decision for sale may be made even if the lien holder is not paid in full. The car owner has a few options on the table in order to remove the lien name from the title and transfer the ownership to a different buyer, and we will discuss some ways on how this can be accomplished.
How Does Trading In A Car With A Lien Work
You can trade in a car that has a lien on it, but to do so you have to get the lien removed before you can legally pass ownership to the dealer. Usually, people will have a lien on the car as security for a debt they owe to someone else, like a bank, where you offer your car as collateral. To get the lien removed, you will have to pay off your debt to satisfy the lien-holder.
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Bank Is In Possession Of Title
How you get the title depends on the reason you don’t have it in the first place. If you still owe money on the car, the easiest course of action is to pay off the remainder. However, you’ll likely want to use the money you’ll get from the buyer to pay off the bank. If you’re selling to a private buyer, simply have that person meet you at the bank that holds the title. The buyer can write a check to the bank to pay off the loan, then write another check to you for any remaining balance. For a trade-in, car dealerships are accustomed to this process and will contact the lien holder directly to determine the necessary steps to get the title transferred.
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Joint Ownership Without Rights Of Survivorship
Certificates of Title issued in Joint Ownership where the names are separated with the words AND or AND/OR, do not carry the same meaning as With Rights Of Survivorship. If the term With Rights Of Survivorship does not appear on the title document, the survivor name on the title cannot obtain a title in their name until a county judge decides, in probate proceedings, that the survivor has the right to ownership of the vehicle.
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If The Title Cant Be Obtained Should I Sell To A Dealer
Whether the cars running or not, selling a car without a title is tough. Not only is the public more wary of buying it, but so are dealerships. Even a newer car can have a salvaged title. Either way, if youre trying to sell a broken vehicle, youre probably after as much cash as possible.
Lets look at why a dealer will low-ball you on most offers:
- Dealer’s make their money on the sale of the vehicle. They also make it on selling an extended warranty. Salvaged cars dont qualify for most programs, meaning a huge chunk of their profit isnt an option. For this reason, dealers will offer a lower amount to try to preserve their margins.
- Salvaged vehicles are risky for a dealer’s reputation. If one were to become involved in a wreck because of an unseen issue, they could be held responsible. For this reason, if a dealer takes a salvaged vehicle in on trade, they likely plan to sell it to a junkyard.
- If a dealer is willing to take the risk of buying a salvaged vehicle, the cost to repair them is usually much higher. They also have to think about what the public’s view will be on the unit and price it accordingly.
For these reasons, if you’re thinking about selling a broken car to a dealer, you should look at other options. If you must be ready for a low offer.
Can You Sell A Car With A Title Loan On It
If youre trying to sell your car, but you still have a car title loan with a lender, you might be wondering if you can sell a car with a title loan on it. The answer is yes, but you have to make sure the car title loan is paid off before you will be able to transfer the title to the new owner.
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Can You Sell A Car Without A Title
Most states require a title for the legal sale of a vehicle, but dont give up hope: There are times when you can sell a car without it. Some states have different laws, and antique or abandoned vehicles are often treated differently.
Below, weve listed the most common missing title situations, as well as how to deal with some outliers.
Cancelling Contracts When Trade
In most cases, you wont know there is a problem with your cars title until you try to register it with the Secretary of State. Car buyers have 15 days after the sale of the vehicle to get it registered. It is entirely possible that your trade-in will be sold during those two weeks.
When that happens, you will be left in a difficult situation. You cant drive your new, unregistered vehicle, and you cant get your trade-in back. As a consumer, you have the right to demand the company give you the fair market value of that trade-in as part of refunding you the value of the bad sale. However, when a dealership isnt following the law about title transfers, it will often compound the problem by refusing to give you what the car is worth.
Thats why it is important not to wait before registering your vehicle. The time it takes you to get to the Secretary of State gives the dealership the time to make your life difficult. If you discover that your dealership sold you a car without a title, you need to speak to an experienced lemon law attorney right away. At The Liblang Law Firm, P.C., we have decades of experience helping people get what they deserve from dealerships that do them wrong. We can help you return the untitled vehicle, demand that the contract be cancelled, and get your trade-in or its value back.
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The Buyer Pays The Lien
If making this deal at the lenders office is not possible, the buyer may directly pay the lender via wire transfer, or with a cashiers check. Both methods can satisfy the lien and also these methods can be used to pay the remaining balance that is owed to the seller.
This option may give some extra assurance to the buyer. Mostly because the funds may be routed straight to the lender, which completely avoids sending the money to the seller, who later must transfer the money to the lender for the deal to go through.
Depending on the law in the state that you live in, the buyer may be able to send the paperwork and also the transfer instructions along with the payment to receive the certificate of title directly from the lender.
The drawback with this option is the fact that if there are some proceeds left after you pay off your load there will be some time until the lender issues a check for you. If you did some upgrade for your vehicle and a buyer agrees to pay you 1000 dollars for this. It may take a while for you to get your money. This is the case because you will at the mercy of the lien holder to issue a check for these upgrades and pay you.
What Happens To Trade
After you trade in your car or truck to the dealer, one of two things will happen. The dealer determines if they can make sufficient profit from the trade-in to warrant putting it up for sale to the general public. Or the dealer determines the reconditioning cost is excessive and doesnt allow for reasonable profit and therefore, doesnt offer the vehicle for sale to the general public and sells it to a wholesaler or takes the vehicle to wholesale auctions to dispose of.
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How To Trade In A Car Without The Title
When it’s time to trade in your car, you’ll be expected to provide a title for that vehicle before the deal can be finalized. But in some cases, you may not have access to the title. It could still be in the bank’s hands, or perhaps you’ve lost it over the years. Whatever the reason, a reputable dealership or private buyer will always demand the title before agreeing to a deal. For that reason, you’ll need to take measures to get the title before you can trade in your car.
How To Transfer Your Car Title In California
Title transfer is a necessary part of the process once you’re finalizing the sale of your car. Depending on your situation , you’ll need to fill out the correct corresponding forms to complete the vehicle title transfer to the buyer.
What You Need to Transfer a Car Title as a Seller:
- The actual vehicle title in hand, with the proper sections signed by both the buyer and seller
- If you have a lien holder on the title, they will need to sign
- Complete the odometer reading, or use the Vehicle Transfer and Reassignment Form, aka REG 262
- A valid smog certificate within 90 Days
- Title Transfer Fee
Can You Sell Your Car Without The Title in Hand?
If you don’t have the title, you can still legally sell it. Youll need to complete a Certificate of Title or Application for Duplicate or Paperless Title – REG 227, which must be signed by both the seller and the buyer.
How Much Does It Cost To Transfer The Title Of A Car?
You can expect a couple of fees when you transfer your title:
- Title transfer
There are a number of additional fees associated with title transfers, though not all of them will apply to you. Read each item carefully, so you’re not surprised when you go into the DMV.
What is Reg 262: Vehicle transfer and reassignment form?
For instance, if theres more than one transfer for the same vehicle, i.e. from Tom to Jerry and then to Spike, there will only be space for Tom and Jerry, and no Spike. This form is then needed to show the transfer from Jerry to Spike.
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How To Sell Your Car When You Have A Car Title Loan
It may be easier to sell a car that has a title loan by paying off the car title loan first. This will make the process of selling your car a lot easier because there are no concerns that will scare the buyer.
Once youve paid off the title loan, youll be able to sell your car without any concerns about who owns the title. You will own it again, so youll be able to transfer it to a buyer. After the loan is paid, you can list the car for how much the loan was worth to get your money back or a little more if you want to make a profit off of your car.
How To Transfer A Car Title To A New State
As if you dont have enough on your plate when moving to a new state, add registering and re-titling your car to the mix. States have their own timetables for making your car legal in its new home, but 30 days is a good place to start.
Some states require an emissions test or a safety inspection or both to title and register an out-of-state vehicle. Many require a physical VIN verification, as well. Its up to you to determine what is necessary for your new home.
If you come from a state that issues titles, take your current title to the local DMV or Department of Transportation office. Additionally, youll need your drivers license, the current odometer reading, proof of residence , and a form of payment. If your new state requires any of the tests mentioned above, youll need proof of passing those.
Some states like Vermont dont require titles for cars more than 15-years-old. If you are coming from a state that doesnt issue titles, you will need your current registration, financing paperwork, and all the other documentation listed in the last paragraph.
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Car Pro Advice: Don’t Trade In Your Car Without Title In Hand
I had a radio show caller from North Texas who had a unique issue. She was going through a divorce and last January traded in a Porsche for a pre-owned Lexus in Louisiana. The only problem was the Porsche was in her soon-to-be ex-husbands name and he has not surrendered the title to the car. After nine months, the dealership became hostile with her, and it is hard to blame them. They have been sitting on a Porsche they cannot sell all this time, and I am sure it has dropped in value. No doubt it will take numerous attorneys to sort this out.
Two mistakes were made here. The lady should never have traded the car without having the title. In the eyes of the law, she traded in a car she did not own, which is a fraud, even though she has a divorce decree awarding the car. Second, the dealership should have never accepted the Porsche without a title, nor should they have given her the Lexus. Car titles are the same as cash, and should be treated as such.
Should I Detail My Car Before I Trade It In
One of the easiest ways to improve the trade in value of your car is to make sure it is in optimal condition. If you get it professionally detailed so everything is deep cleaned, you can get added value from the trade in especially if your interior was very messy to begin with. You can get basic levels of detailing for less than $100 , but the extra value you get from the trade-in offer will often be worth more.
The same thing applies to fixing up the exterior of your car. Things like removing rust, touching up scratches and chips in the paint, polishing and waxing everything, and washing the tires to make it look like its in better condition will only help you get a better offer from a dealer.
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The Title Hasnt Been Signed Or Delivered By The Seller
If an arrangement has been made with the seller to test drive the car or take it to a mechanic, the car will be driven while the title remains in the sellers name. If a seller has just paid off the loan to a lender that holds the title, there may be a wait time before the lien holder can be released and the title can be mailed out. Once the seller receives the title, it can be signed and delivered to the buyer. In both of these situations, the buyer of the vehicle can legally drive it.
Looking For A Dealer To Work With
Dealerships handle trade-ins all the time. But while the process of trading in a vehicle is the same for all dealers, the trade-in value can vary from dealer to dealer.
If youre in the market for a used car but worry your credits holding you back, let CarsDirect help. We work with a coast-to-coast network of dealerships that specialize in helping bad credit car buyers get the financing they need. All you need to do is fill out our auto loan request form. Our service is free of cost and obligation, so get started right now!
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