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Unread 01-31-2014, 10:02 AM   #1
Lenny7
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Selling Jeep you owe money on? Anyone?

Anybody sell there Jeep when they still owe money on it? I only owe about $2,300 but my wife isn't a fan of me taking money out of savings just so I can buy another Jeep.
How much of a pain is it? What are my options? Escrow? Anybody done that?
I have the loan through capital one. I doubt the buyer will go along with, "Don't worry I'll send you the title in a few weeks. Thanks for the $20k"
Any ecperience or ideas. I could always be patient and wait 6 months to pay it off. But that's no fun. I'm an American and I want someting now.

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Unread 01-31-2014, 10:13 AM   #2
Adam013085
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You have a couple options. You can go to a capital one bank near where you are he can give you $20k then you turn around and pay the bank off. The bank does not keep the title at their branch anyway so the buyer will have to wait a few weeks to receive the title (at least this is how it is in Illinois). This happened to me a few months ago, I bought a truck from my neighbor with the loan. What happened is I went to my bank they wrote a check for the amount of the loan and that was sent to the bank where my neighbor had the loan. The amount left over was given to my neighbor. The check was sent to the bank and the copy of the title was sent to the bank I got my loan at. If the buyer is going to get a loan it is no big deal and the title work goes on behind the scenes. If the buyer has $20k sitting around and pays cash they will have to wait for the title to be sent to them. What I would do if it was me, would be pay it off with savings if I have it (cuz you know you aren't earning **** on savings accts these days) then put the $2300 back into savings. It will knock some extra work from you and the buyer and you would have the title in hand when you are ready to sell. Good luck whatever you decide.
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Unread 01-31-2014, 10:58 AM   #3
Lenny7
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Originally Posted by Adam013085 View Post
What I would do if it was me, would be pay it off with savings if I have it (cuz you know you aren't earning **** on savings accts these days) then put the $2300 back into savings. It will knock some extra work from you and the buyer and you would have the title in hand when you are ready to sell. Good luck whatever you decide.
I agree but my wife is super conservative about our saving account. "What if it takes forever to sell?" "What if you don't get as much as you expect for it and can't put it back?" Etc... All valid points. Thanks for your input.
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Unread 01-31-2014, 11:15 AM   #4
222Doc
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trade it in and get the tax credit, if your state has that. this saves many people enough to not bother to sell it on open market.
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Unread 01-31-2014, 11:15 AM   #5
Adam013085
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Its not a deal breaker, it just cuts the bank middle man out of it and a bit of a smoother transaction. If I found a Jeep I liked I wouldn't let a lein on the title change my mind.
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Unread 01-31-2014, 11:57 AM   #6
Lenny7
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trade it in and get the tax credit, if your state has that. this saves many people enough to not bother to sell it on open market.
Pardon my ignorance, but how does that work? I live in Texas and I've heard this term thrown around but I'm sure what they are talking about. If you trade in do you not have to pay tax on the "new"(I'm actually looking at a used one) car?
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Unread 01-31-2014, 12:02 PM   #7
Adam013085
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I know in Illinois you only pay the difference between the purchase price and what they give you in trade... ie if you buy a $30k vehicle and they give you $19k in trade you only pay taxes on the 11k difference. If you sell outright and buy a 30k vehicle you will pay taxes on the entire 30k. It can add up to a a 1-2k difference or so.
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Unread 01-31-2014, 05:44 PM   #8
222Doc
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Originally Posted by Adam013085 View Post
I know in Illinois you only pay the difference between the purchase price and what they give you in trade... ie if you buy a $30k vehicle and they give you $19k in trade you only pay taxes on the 11k difference. If you sell outright and buy a 30k vehicle you will pay taxes on the entire 30k. It can add up to a a 1-2k difference or so.
same here. trade ib a car that i owned out right. for 18k the new jeep was like 33.5K our tax rate here is 9%. I could not have sold the car for 18K on the street very easy. the tax saved was a bonus.
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Unread 02-01-2014, 07:32 PM   #9
linusb
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If I was doing a private party sale, I'd want the title in hand. You have the money to pay it off. Wear the pants and tell your wife you'll have a larger market to sell to with the title in hand.

And separately, I'm quite sure your savings account is earning less interest than what you are payin on the loan. So you'll be saving money by paying it off.
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Unread 02-02-2014, 03:19 PM   #10
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If I was doing a private party sale, I'd want the title in hand. You have the money to pay it off. Wear the pants and tell your wife you'll have a larger market to sell to with the title in hand.

And separately, I'm quite sure your savings account is earning less interest than what you are payin on the loan. So you'll be saving money by paying it off.
Well said.

$2,300 isn't much money. Maybe she just doesn't want you to sell it. Wives hate husbands spending money so I wouldn't be surprised if that's the case? Might just wait as there are always new cars. Hell I hate buying cars as dealerships are a wretched hive of scum and villainy. (To be frank!)
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Unread 02-02-2014, 09:26 PM   #11
linusb
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Keep the jeep you have and upgrade it!
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Unread 02-03-2014, 08:00 AM   #12
dayriesw
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I never have understood paying on something when you have the money in the bank to pay it off. Pay if off, get the title, then sell it.
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Unread 02-03-2014, 09:56 PM   #13
TSEJEEPERS
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Continue to make payments on it until it is paid off.
Then ask for your manhood back.
Why are you asking us?
I agree with linusb upgrade it!
Tell us about the Jeep you are looking at buying.
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