Tips on Buying Cars: Used Car Sale, hsbcautoloan, roadloans

Question
Hi Jeremy:

I have bought and sold a lot of used cars in my life but I just bought my wife a convertible (which she hates) and we want to get an SUV for her.  I need to sell the convertible first.  This is the first time I have sold a car that I didn't have clear title as it is financed.
Also, we will need to finance the new "used" car.  First of all, how do I sell a used car to the new owner when I don't have the title?  Promising the buyer that I will take the money they give me and pay off the car and send them the title doesn't sound too reassuring to the buyer.    
Secondly, how do I buy a car from a private seller when I am going to finance?  I have fair credit but its not like I will be able to get a credit line from a local bank.  Any ideas?  Thanks!


Answer
Mike,

Thanks for your question.  these are two separate transactions.  First, you will need to draw up a bill of sale and have it notarized by someone once you find a seller.  Since your car is financed that you are selling, have the buyer make a cashier's check payable to your finance institution in the amount of your payoff.  Send that to the lender, as it will be made out to them.  Secondly, have them make a second cashiers check payable to you for the overage, if there is any, payable at the time that you receive and hand over the title to the new buyer.  Have all of this spelled out in the bill of sale.  

As far as your new loan is concerned, you will need to go to some online lenders such as capitalone.com or hsbcautoloan.com, or roadloans.com and secure your financing that way.  They will send you a check.  Make sure that they know that you are buying the vehicle from a private seller.  If none of this works, you will need to go to your own bank who you have a relationship with and see if they can help.  

Hope this helps.

Thanks - JB