Selling a car without the title in possession

[dortinau]

Ok, here's my situation. I'm selling my car, however the lender (BMW) has the title. The process with BMW is that I have a cashiers check for the payoff amount sent to them and they release the title to me.

So, since I prefer not to payoff the car myself and then sell it, I need a buyer who will write one cashiers check to BMW and one to me for the difference (cuz I'll sell for more than the payoff). The buyer would take possession of the vehicle immediately, but would need to wait until I get the title from BMW and can sign it over to them.

In the state of MO it is my understanding that I use the state Bill of Sale as an official document with the buyer.

Is a buyer going to be cool with handing over cashiers checks, leaving with the car and Bill of Sale, but waiting on the title?

Dealerships do this all the time with trade-ins, but how comfortable is a private buyer with this arrangement? Am I thinking about this right, or is there a better way?

Dave

[bob]

I haven't done much private selling, but it seems like there should be a way to escrow it or something - until the dust settles...

[pochax]

i agree with Bob - having a 3rd-party mediate the transaction would keep everybody's interests equitable.

[dortinau]

Thx guys

Any recommendations on a company to start with? My bank?

[bob]

dortinau,
I would think your banker should have an answer - they have to see situations like these all the time... Let me know what happens with this whole thing - I am curious...

[pochax]

i was actually thinking of a lawyer...but i can imagine they wouldn't do it for free. also, i wonder if you can do it this way:
1) get $ from buyer
2) give buyer a signed (by you) lien on the title that by giving you this money he is legal right to the car in question
3) once title is received and exchanged, you can rip up the lien.

i have to wonder whether there is an easier way to do this that has been already thought out by someone else. anyone?

[matt]

That's odd the BMW keeps the title. Seems like they're making their cars intentionally difficult to sell?

When I got my Ford I got the title and they just had a lien on it. I recently sold it and had lost the document they sent me after I finished paying it off releasing the lien so I had to get another one issued...

[dortinau]

Yeh, it doesn't make it as easy to privately sell. I've had it both ways: where the financial institution holds the title and sends it after the payoff (BoA did this), and others where I held the title and it just said on the front that the bank had a lien on it.

[Fryguy]

I went thru this process the spring of this year. The seller and I went to my bank, I put thru a wire transfer to his bank where the lien was to pay that off. I then spoke with his bank and gave them my address to send the title to, they signed it over to me and sent it once the wire transfer cleared. I gave him a check for the extra above and beyond the payoff amount, I got the car and in a few days got the title from his bank.