Gamma

I have a loan balance with Santander Consumer and am thinking about selling my 98 C2S with 48k miles.

My friends in the past have gone to their local bank branch where the loan originated and had the buyer issue two checks, one for the loan balance and one for the remainder to their personal name and they completed the transaction at the teller.

My problem is that Santander has no branches and I use my free cash flow for my business.

Has anyone sold a car with a loan balance without paying off the loan first?

I'm thinking I might have to just pay the balance and do it the "easy" way.

BobbyT

With cashier's checks, there can be a time lag of a week or more until the funds are available to pay off an outstanding loan. During that time, the buyer is in limbo, can't register the car in his name, and is uncomfortable knowing that he has paid you for a car that legally belongs to someone else.

Personally, even with a cashier's check in hand, I wouldn't hand over my car until the funds clear. There are just too many scams out there, and I have been presented what looked like a valid cashier's check that was actually fraudulent--only once, but lesson learned.

Of course the best solution is to pay the car off beforehand, and have the clear title in hand.

A second best solution is to have the buyer pay for the car with a wire transfer (preferably in your presence), and as soon as the money hits your account, you pay off the loan (preferably in his presence).

ilko

Santander should have a place where loan checks can be mailed and processed. First thing I would do is call the bank and find out what their process is. Some loan companies take up to 30 days to release the title (or furnish a letter stating they are no longer a lien holder on a title) and that can complicate things for the buyer. The car can't be registered without that documentation. Explain to the rep your situation and hopefully you can establish a working relationship with that person because you'll be making more than one call.

Next step is to get a payoff quote and then send it to the buyer so he can mail it along with the check. Once the buyer mails the check stay on top of the bank to make sure it's processed correctly and the title is released.

It sounds a little complicated but it really isn't too bad. But it does take time. It's definitely easier to pay off the balance yourself and have a clear title.

Who did you finance with, JJ Best?

Gamma

Thanks for the warning about the fake cashiers checks BobbyT. I'll make sure I get a wire in that case.

I did call Santander and they said it would take 20 days from when I send in the funds to get the title mailed to me. 20 days is the outside time I think.

I did finance with JJ Best -- good guess ilko :-D

ilko

Wasn't a guess. Santander's the underwriter on all JJ Best loans. They have a branch a block from my office and I have a couple of accounts with them so if you think there's anything I can help you with just let me know.

Gamma

Thanks -- really super of you to offer

I think I might have to go the straightforward route, pay off the loan, and get clear title in hand.

Very sad to see it go (cry).

skl2

I purchased a car from someone this way and it went well....however, you are still waiting about a week for the lein holder to mail you the title. I wasn't worried since I saw him pay the balance first hand and they took down my info to send me the title.

BobbyT

A little more on the fake cashier's check. The guy sent it overnight FedEx to pay for an expensive watch that I had on ebay, pressing me to send it ASAP, it was for a birthday present or some such BS. It was purportedly drawn on Border Trust, 368 Route 3, South China, ME, so just the bank's address already had me suspicious, but it did have the appearance of a real cashier's check. I called them, and they are apparently a legitimate bank, but when I told them the name of the sender, the bank manager actually laughed on the phone, but would tell me straight out that the check was bogus, likely for liability reasons.

I took it to my own bank, and had them check it out. Their scanner showed "suspicious document--no MICR code detected" (no little magnetic ink numbers that a real check would have).

I had little fun with this scammer. I sent him an email with the tracking number of my shipment to the legitimate buyer, and told him it was "signature required", so someone over 18 had to be home all day. He had the ***** to email me back after a while telling me that I had mistakenly sent the watch to the wrong address.

Gamma

IC. So you paid the seller the full amount, and you saw him pay the lien holder in person, and the lien holder agreed to send you the title.

Wish I could do that, but Santander have no branches near me.

Thanks for the additional info BobbyT; I'm going to insist on a wire at the bank I think.

plymouthcolt

Gamma I don't know what state you are in but here in Maryland you can register a car with a lien release on bank letterhead.

I am a bank manager have written many lien release letters that say the following:

This letter certifies that Santander Bank no longer holds a security interest in the 19XX Make Model VIN, in the name(s) of owner/owner 2. The buyer takes the letter and the title to MVA (Motor Vehicle Admin) and registers the car.

After a few weeks the actual security interst filing is received by the former owner from the bank, but at that point it's no longer needed.

Ask Santander will they type up a letter so you son't have to wait 20 days.

speedy88

Here is another option: use a dealership (but only if you know someone really well). You sell the dealer your car and your buyer buys the car from them. Here is the "catch", you have to pay the dealer for their service (ie. profits, safety inspection, paperwork fees, business tax, etc..). Usually, I give them around $500 for everything. Your buyer gets a safety checked vehicle and have a finance option from the dealer. Win win situation for everyone.

Another benefit (if it applies to your state) is tax credit. If you buy another vehicle from the same dealer, you can apply the tax credit to the new vehicle.

Bottom Line: find a buyer, pay off the car (there may expedited options, i.e. paperless title, taking the "release of interest" from the bank and go directly to place where the title is generated. In Washington, I go to the Captial and pay for the $25 super service, they print the title right there. I can have the title to the vehicle in one day.

Good luck with your sale.

Gamma

Thanks for the helpful replies folks. Rennlist is the best!

I've already been contacted by a few passionate rennlisters looking for a C2S

dcdude

1) Seller communicates steps 2 - 6 clearly to buyer
2) Receive secure payment, ideally via wire
3) Seller hands over car and keys to buyer / shipper
4) Seller pays off loan balance
5) Lender sends title to seller (2 weeks?)
6) Seller sends title to buyer. Overnight is a nice touch.

I've done this before. Most buyers understand the process and are cool with the delayed receipt of title if they want the deal bad enough.