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Joseph
Joseph, Attorney
Category: Legal
Satisfied Customers: 7280
Experience:  I have 15 years experience in the legal field, currently specializing in criminal and family law
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My girlfriend financed a car with her ex boyfriend (daughters

Customer Question

My girlfriend financed a car with her ex boyfriend (daughter's father) with whom there is no desire to be in touch with. He was a co-applicant on the loan. She owes a lot on the car still and would like to sell to get into something with more manageable payments and which suits her new needs better. What is the process for selling? Is it possible for her to sell without involving him in any manner? She has made all of the payments thus far and it has been "her" car for the life of the loan.
Submitted: 5 years ago.
Category: Legal
Expert:  Joseph replied 5 years ago.

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.

 

Please let me know if anything needs clarification.

 

 

Also, several customers have asked how they may direct a question to me in particular. If you specifically want me to assist you in your legal matter, just put "FOR JOSEPH" in the subject line and I will gladly pick up the question as soon as I am on-line.

Customer: replied 5 years ago.
Thank you.

What is the simplest way to go about selling the car without having a clear title? Is trading to a used dealer an option?

How would she go about selling to a private party?
Expert:  Joseph replied 5 years ago.

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.

 

 

Also, several customers have asked how they may direct a question to me in particular. If you specifically want me to assist you in your legal matter, just put "FOR JOSEPH" in the subject line and I will gladly pick up the question as soon as I am on-line.

Customer: replied 5 years ago.
For clarification, when you say "sell to a dealer" you are referring to attempting to trade it in when purchasing another car from the dealer?
Expert:  Joseph replied 5 years ago.

Correct, by selling to a dealer I meant as part of a trade for another vehicle.

 

 

Also, several customers have asked how they may direct a question to me in particular. If you specifically want me to assist you in your legal matter, just put "FOR JOSEPH" in the subject line and I will gladly pick up the question as soon as I am on-line.

Customer: replied 5 years ago.
Thank you. One more question, I swear I'm intelligent in other departments, but I get lost in these dealings.

The sale price was $21k I believe. She supposedly has a buyout of around $11k at this point. I will know better when she calls for the exact figure.

The cars that we are looking at for her are in the 6-7k range used.

What would be the situation there in terms of what moneys would be exchanged?
Expert:  Joseph replied 5 years ago.

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.

 

 

Also, several customers have asked how they may direct a question to me in particular. If you specifically want me to assist you in your legal matter, just put "FOR JOSEPH" in the subject line and I will gladly pick up the question as soon as I am on-line.

Customer: replied 5 years ago.
That makes sense.

If the car is valued at less than the buy out amount (due to mileage and/or cosmetic flaws), what would be the real downside to surrendering/giving the car back to the dealership? Her credit is already shot at this point and we would not be financing the next car (cash).

It is my understanding that she would then be free of the payments (perhaps minus being liable for the difference between the current value based on condition and what is owed- please advise if I am off on this understanding).



Expert:  Joseph replied 5 years ago.

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.

 

I am going off-line for the evening. Please feel free to respond, if necessary, and know that I will be back on-line tomorrow.

 

Thank you for your patience.

 

 

Also, several customers have asked how they may direct a question to me in particular. If you specifically want me to assist you in your legal matter, just put "FOR JOSEPH" in the subject line and I will gladly pick up the question as soon as I am on-line.

Customer: replied 5 years ago.
Thanks a ton for your help. Reply when you can, I'm definitely satisfied and will be contributing.

"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."

When you speak of the existing loan here, you mean the $11k or whatever the buy out is correct? If she surrenders the car to them, she is essentially "paying" them the current value of the car (let's say 9k for arguments sake) and would have to pay 2k to clear the loan, am I right in this thinking?
Expert:  Joseph replied 5 years ago.

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.

 

 

Also, several customers have asked how they may direct a question to me in particular. If you specifically want me to assist you in your legal matter, just put "FOR JOSEPH" in the subject line and I will gladly pick up the question as soon as I am on-line.