Audi R8 Forums banner

1 - 13 of 13 Posts

·
Registered
Joined
·
193 Posts
Discussion Starter · #1 ·
Here is my situation. I am taking photos of my car tomorrow and listing it on Autotrader.com to sell. I strongly prefer to do a private party sale as the car has a 10 year and 100,000 mile fidelity warranty on it that is only transferable if its a private party sale. I have done a number of car and motorcycle private party sales where I have the title in my hand or the other guy has a title in his hand and we just exchange and move on.

However, I have a loan on this car for about $40k and the bank has the title. For business and tax (and divorce) purposes, I don't want to pay the bank off in advance and have them give me the title. So..... I am confused as to the exact process. I'm a thorough and detailed guy and don't want there to be any opportunity for the seller (me) to get screwed or the buyer to potentially get screwed. I want a clean and legal transaction where both parties have covered themselves.

Can someone who truly understands the process of getting a private sale transacted explain to me what to do? Again, there should be no "trust" involved in sale like this as both sides should assume the other is a scumbag trying to screw them.
 

·
Registered
Joined
·
89 Posts
Sounds like you want this to work like selling a house and paying off the mortgage. In which case you'll go through lawyers and escrow and need to eat some of the fees involved. If a buyer is even interested in going through this process and waiting for the title to clear.
 

·
Registered
Joined
·
191 Posts
If the other party is using finance also - it’s relatively straight forward between finance companies.

If the other party is paying cash then it’s tricky and will cost you abit for the security as ntg mentioned
 

·
Registered
Joined
·
193 Posts
Discussion Starter · #4 ·
I still don't understand the process. Lets assume the buyer is using financing. Then he comes to see car, we take the car to a PPI, agree on a price and then what? I make a contract from an online forum and he has his finance company pay my finance company who release the title to him? When does he get the car?

Can he get the keys the same day we agree on a price?
 

·
Registered
Joined
·
15 Posts
Did you ever decide on a price? I saw your thread a few months ago and think I PM'd.

If I was interested, I would send a deposit to hold if required as long as it was refundable. PPI can be handled remotely, or done while I was in town. I would show up approved for financing, and my bank would talk to yours to get title transferred after payment from my bank to yours is made.

You never get the title, as it has a lien, just as I would never get the title the bank takes it because of the lien. Your bank would take the approved check, or wire transfer from my bank, and I leave with the car. Your debt is settled with the bank and they deposit into your account any remaining funds after settling the loan, the car is gone, nothing else needed from your end.
 

·
Registered
Joined
·
118 Posts
One easy way to do this is to process the sale through an F&I office at a dealership. You can typically pay $500 to the dealership. The F&I office is by far the most profitable department in the dealership. They can also secure financing for the buyer as well and they will make money on that, as well as any upsales, but it looks like you have the Fidelity warranty, so that may be minimal.
 

·
Premium Member
Joined
·
4,753 Posts
If the Fidelity warranty is non-transferrable through a dealer, and that's a big part of the value you're pricing in, then your options are going to be somewhat limited. Using a dealer's finance department, consignment, or similar probably won't work - I say probably only because I'm not familiar with the Fidelity warranty constraints but assuming it's a non-starter.

If you're looking to fully take "trust" out of the equation, then the only option is probably going the lawyer and escrow route - similar to buying / selling a home. I have no experience doing this, but I'd imagine it may look something like this:

  • Buyer and seller agree on a price
  • PPI performed (if requested) at buyer's expense
  • Lawyers draft bill of sale and paperwork for both parties to sign
  • Car and buyer's certified bank check (made out to the escrow company or lawyers) go into escrow while payment clears.
  • Lawyers use funds to pay off the lien and and wait on title release from the current bank.
  • You sign over the title to the buyer
  • Lawyers / escrow hand the title and keys to the buyer.

Again, I haven't done this, so take it as my educated guess. It would probably be a lengthy process as some states, especially with COVID-related delays, are probably taking longer to process things like title changes. But again, if you don't have a clear title in-hand, and you're looking for a bulletproof way of doing the transaction, I'd imagine the lawyers would need to stay involved and wait through the lien release and title release - ensuring that you don't do something like take the cleared funds, deliver the car, but never pay off the loan, which would leave the buyer with a car they don't technically own.

I've also suggested that the car, too, might go into escrow - not sure about this, obviously, but if I were the buyer, I'd feel better if it did.... ensuring that the check doesn't get used to pay off the loan and the seller then runs. Seems like, short of having the title to hold in escrow as collateral, this would be the next best option - but clearly it's also logistically complex. Given that there's legal recourse if the seller did this (there's an agreement in place), perhaps it could be avoided by a more trusting buyer.

Lastly, you might look at something like escrow.com - again, no experience with them, but they also do this kind of thing for a fee.
 

·
Registered
2017 R8 V10+ Mythos Black
Joined
·
37 Posts
I just sold my rs5 and went through this exact process. It actually was easy because I had a loan on the car, and he was also going through a credit union. His credit union handled mostly everything. I sent info over about my credit union, and they got the payoff amount from them. They sent my credit union a check to pay off the balance, and also separately sent me a check for the difference.

In my case, there was some trust involved. I verified his credit union, talked to their representative, confirmed that they sent payment, and got a tracking number. Once I had those in place, I was willing to sign the bill of sale and hand him the keys. I transferred over my warranty a few days later as well. Title never touched either of our hands. It went straight from credit union to credit union.

I met the guy a few times and trusted him. If things seemed sketchy, I suppose we could have inserted an escrow service into this process to protect both of us but that would have cost probably a few thousand.

Hope that was helpful.
 

·
Registered
Joined
·
193 Posts
Discussion Starter · #10 ·
Well, I just listed it on autotrader so we will see how this goes. I hope she finds a good home and the next owner enjoys her as much as I have......
 

·
Premium Member
2020 R8 V10 Performance Spyder
Joined
·
2,850 Posts
If the Fidelity warranty is non-transferrable through a dealer, and that's a big part of the value you're pricing in, then your options are going to be somewhat limited. Using a dealer's finance department, consignment, or similar probably won't work - I say probably only because I'm not familiar with the Fidelity warranty constraints but assuming it's a non-starter.

If you're looking to fully take "trust" out of the equation, then the only option is probably going the lawyer and escrow route - similar to buying / selling a home. I have no experience doing this, but I'd imagine it may look something like this:

  • Buyer and seller agree on a price
  • PPI performed (if requested) at buyer's expense
  • Lawyers draft bill of sale and paperwork for both parties to sign
  • Car and buyer's certified bank check (made out to the escrow company or lawyers) go into escrow while payment clears.
  • Lawyers use funds to pay off the lien and and wait on title release from the current bank.
  • You sign over the title to the buyer
  • Lawyers / escrow hand the title and keys to the buyer.

Again, I haven't done this, so take it as my educated guess. It would probably be a lengthy process as some states, especially with COVID-related delays, are probably taking longer to process things like title changes. But again, if you don't have a clear title in-hand, and you're looking for a bulletproof way of doing the transaction, I'd imagine the lawyers would need to stay involved and wait through the lien release and title release - ensuring that you don't do something like take the cleared funds, deliver the car, but never pay off the loan, which would leave the buyer with a car they don't technically own.

I've also suggested that the car, too, might go into escrow - not sure about this, obviously, but if I were the buyer, I'd feel better if it did.... ensuring that the check doesn't get used to pay off the loan and the seller then runs. Seems like, short of having the title to hold in escrow as collateral, this would be the next best option - but clearly it's also logistically complex. Given that there's legal recourse if the seller did this (there's an agreement in place), perhaps it could be avoided by a more trusting buyer.

Lastly, you might look at something like escrow.com - again, no experience with them, but they also do this kind of thing for a fee.
There’s no need for escrow or lawyers if being handled by the bank, especially when the bank is involved on both sides of the deal (seller and buyer).

title never touches either the buyers or sellers hands...it’s between the 2 financial institutions (bank/credit union) and the balance of funds (if any) would be paid directly to the seller once the deal is complete so unless you don’t trust your own bank/credit union...then you’re good to go
 
  • Like
Reactions: ezmaass

·
Registered
Joined
·
72 Posts
I just sold my rs5 and went through this exact process. It actually was easy because I had a loan on the car, and he was also going through a credit union. His credit union handled mostly everything. I sent info over about my credit union, and they got the payoff amount from them. They sent my credit union a check to pay off the balance, and also separately sent me a check for the difference.

In my case, there was some trust involved. I verified his credit union, talked to their representative, confirmed that they sent payment, and got a tracking number. Once I had those in place, I was willing to sign the bill of sale and hand him the keys. I transferred over my warranty a few days later as well. Title never touched either of our hands. It went straight from credit union to credit union.

I met the guy a few times and trusted him. If things seemed sketchy, I suppose we could have inserted an escrow service into this process to protect both of us but that would have cost probably a few thousand.

Hope that was helpful.
This was exactly how we sold my wife’s Mercedes a few years ago and was really no big deal. We even met at the bank and did the meet and greet in the parking lot, test drive, negotiations, and then walked right in and let them handle the paper work aspect. No titles ever pass hands and funds never even did. They deposited the remaining funds over the payoff amount and we signed a quick bill of sale and away we went. Warranty paperwork was super easy to sign over as well.
 

·
Registered
Joined
·
193 Posts
Discussion Starter · #13 ·
Ok, I'm glad I asked this group. Its now clear to me. I posted the car on autotrader and we will see what happens. I'm ready to sell now and hope it goes quick. I priced it around 85k when the same year cars with less miles and NO warranty are asking 95k on autotrader. I think that is a quick sale price, but the market will tell me if I am right!

Thanks again.
 
1 - 13 of 13 Posts
Top