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As money is owed, that means that his name is XXXXX XXXXX loan only, it is not on the title. This being the case, she does not need his consent to sell the car. She would sell the car and pay off the loan. Once the loan is satisfied, there will no longer be a connection between her and the former boyfriend as far as the vehicle is concerned.
The key here is payment in full on the loan, so long as she can accomplish that, she will be fine.
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The easiest method would be to sell to a dealer. When selling to a dealership, they will handle all of the transfers of tags and titles with very little effort on the part of the seller.
If you sell to a private party, you need to handle those things yourself. You would need to take payment from the buyer and forward the payoff amount to the lien holder. Upon payment, they would release the title which, in turn, would be given by you to the buyer. It takes more effort on your part and a bit of faith on the part of the buyer as he won't have the title for a couple weeks.
Correct, by selling to a dealer I meant as part of a trade for another vehicle.
That depends hugely on 1) what the car is actually worth and 2) how the dealership wants to structure the deal. As I suspect you know, car dealerships are notoriously crafty when it comes to setting up the sales, especially when a trade-in is involved.
Hypothetically, if the car is worth about $15,000 and she owes $11,000, she should net about $4,000 from trading in her car. The dealership would pay off the creditor on that car and then put the $4,000 towards her purchase of the new car, leaving her about $2,000 to $3,000 to finance.
This is, of course, an overly simplistic hypothetical. You also need to consider tax, tags and title costs.
No downside comes to mind other than the existing loan. As to that, she needs to find a way to get that paid. She would have a couple options; she could obviously pay that off with cash or she could roll any remaining balance into the new car purchase. While rolling it into the new car purchase may create a loan (and payments), it would eliminate the old loan, thereby resolving the issue of contact with the former boyfriend.
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Thank you for your patience.
Yes, your math is correct, if the dealership were to give her $9,000 and the pay-off is $11,000, then $2,000 would need to come from somewhere to fully pay off the loan on the current car. The $2,000 would most likely come from either cash or it would be rolled into the new loan on the new car.
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