ilcorvettegiallo

Selling a car, and the title is still owned by GMAC until the car is paid off. Say the funds are wired into my account on Sunday (today) and the Bank accepts and says all is good on Monday.

Now, is it ok to the let individual take the car on Monday before GMAC is paid in full and just have the title sent to the individual when cleared.....or should the car stay in my possesion until GMAC is paid in full and the title is free, sent to me, and signed by myself?

Not sure what the best way to do this is. Could someone with some insight help me out?

Thanks.

MrLeadFoot

Create a bill of sale, signed by both you and the buyer and keep a copy, or make two, and you both get an original copy.

Release posession of the car to the buyer, as for all intents and purposes, the transaction is done, as evidenced by the bill of sale. Send the title to the buyer when you get it.

As an extra precaution, you can still keep your insurance on the vehicle as secondary insurance to protect you if it will make you feel better.

But, if you really think about it, you will already have gotten your money, so the car doesn't really matter to you after you release it to the buyer, right?

Just so you know, even if you don't send the title, the car would be legally his, so he can still transfer ownership just from the bill of sale if he has to.

ilcorvettegiallo

Any more thoughts? I got a completely different answer over on z06veette.com saying keep the car until title is cleared or you can get sued if he gets hurt in the car. All is appreciated.

Thanks.

Rattler71

People buy new cars all time from a dealership without the title being cleared first or transferred. I agree with everyting MRLEADFOOT said.

Scott

georgec114

Absolutely do not let the car out of your sight until the title
is tranferred to the buyer.

Too many bad things can happen.

...George

Red_Rocket_2004

totally agree!

F.J.B.

The new buyer CANT register the car without the SATISFACTION OF LIEN paperwork. As long as that paperwork is with the old title....then the respective DMV with send the NEW CLEAR Title . At least thats how it works here in NYC and I have sold two vehicles with a stated LIEN on the title , but had the proper paperwork. Never a problem!.....(but then again....in NYC....you could register a stolen car without a problem)!!!!!

Oh yeah....both vehicles had GMAC liens.

JACKAL0PE

I agree as well. I've been there on both sides. The Bill of Sale protects the buyer AND the seller. The seller, in the person of GMAC has the legal ownership of the car until the sale is completed and the buyer has proof that he's paid for the car and that it's legally his.

I'd keep the insurance too, but really, if you've got the money (CASH) then the title is more the buyer's problem than yours. You just want to keep the insurance because of any potential liability issues.

MrLeadFoot

As you can see by this statement, this is the not the seller's problem, it's the buyer's problem. Thus, you are perfectly fine to give the buyer the car. It's up to him to trust that you will use the funds he gave you to actually pay off the lien.

I'd like to hear just one example of something "bad" that can happen, as far as the seller is concerned. Even if you don't keep insurance on the car, you will not be liable. Of course, anyone can sue anyone; even keeping insurance on the car won't prevent you from being sued. Bu, just because someone sues you, it's a completely different animal in being able to prove liability. Remember that the bill of sale is legal and binding, so even if the buyer commits a bank robbery and kills people in your car, you will not be held liable.