Selling a car with a lien to private buyer

[jewelasam]

I just lost my job and we would like to sell our vehicles so I can finish college. Both of our cars have liens on them, but are worth a few thousand more each than what we owe. We would like to Sell the cars, pay off the lien and use what is left to buy a car that is paid for.

My question is, how does one sell a car that has a lien on it? Does the buyer pay me in full and I pay off the lien? Or do they pay me the difference of what is owed and the asking price and then they pay off the lien?
If so, how can I be sure that if I let them pay off the lien that they will do it and not ruin my credit? Also, how would they know for sure that I would use their money to pay off the lien, since they don't even know me? Is there a protocol to follow?

 

[seniorjudge]

Q: My question is, how does one sell a car that has a lien on it?

A: Simple. When you take the dough to the lender, the lender removes the lien from the title so the buyer can tag it.

 

[Duranie]

I just bought a car. Basically the seller would get financing and pretty much all the paperwork is done at the bank or credit union where the buyer is doing the loan. The bank will call for a 10 day payoff, which they will either wire or send a check, ansd generally you will get a cashiers check for the difference. The banker also has access to the DMV website so generally they collect the registration fees and issue temporary tags to the buyer. Out here in AZ, the plates stay with the seller.

Out here in AZ, the title hoes to the lienholder. So the bank would send the title to the new lienholder once the payoff has taken place.

So, find out what you owe on the vehicle and go due a private party retail kelly blue book and go from there. Most bank branches and credit unions do alot of car loans so they usually know what they are doing.