Newbie Selling Question

AndreTheGeek · 02-14-2010, 10:48 AM

I'm selling my car. I have an interested buyer, and now I'm wondering about how to actually do it.

I still owe some money on the car to BMW Finance, so I'm not sure of the order of things.

Naturally I don't want to burden the buyer with having a lien on the car, but I also don't want to pay off the lien until the deal is 100% done and I have the money.

Has anyone done this with BMW Finance who can advise me as to the order of things?

Thanks
Andre

aspiring335 · 02-14-2010, 01:09 PM

I'm pretty sure you can have the buyer make out a cheque to you AND BMW Financial Services for the selling price. You can endorse the cheque and send it to BMW. Then BMW FS will send you the difference.

AndreTheGeek · 02-14-2010, 02:01 PM

Quote:

Originally Posted by aspiring335

I'm pretty sure you can have the buyer make out a cheque to you AND BMW Financial Services for the selling price. You can endorse the cheque and send it to BMW. Then BMW FS will send you the difference.

Not sure if that sounds right. Why would I send BMW significantly more money than I owe them?

I'm just looking for the logistics of paying off what I owe and timing it right so the buyer drives away lien-free.

aspiring335 · 02-14-2010, 02:04 PM

It ensures that neither you nor the buyer are taking any risk. You know that the buyer has purchased the car so you don't have to pay off the loan before you're sure about that; he knows that the car will be lien-free, and doesn't have to take your word on it.

BMW will send you the difference between the purchase price and the balance owing on your loan. In any case, you're not sending BMW any money really; the buyer is writing the cheque, you're just delaying getting the money by a few days

Alternatively, you may be able to have your (or his) bank do something similar -- issue a cheque to you for the purchase price less the loan, send payment to BMW for the outstanding loan amount.

Quote:

Originally Posted by AndreTheGeek

Not sure if that sounds right. Why would I send BMW significantly more money than I owe them?

I'm just looking for the logistics of paying off what I owe and timing it right so the buyer drives away lien-free.

da1nonly · 02-14-2010, 02:22 PM

when i bought my car of another dude (private sale) we both went to his bank where he paid off his loan and the bank drafted a letter stating that there was no longer a loan out on the car. i had to fax this letter to my insurance so i could get the car insured. Not sure if u can do the same, meaning not sure if BMW works through any banks or if u can do a similar thing at the dealership.

bosco · 02-14-2010, 05:17 PM

Both go to BMW have him bring 2 cashiers checks one for BMW to pay off the remainder of the vehicle one for you for the other portion to eqaute for the selling price. Have BMW issue the letter that vehicle was paid in full.

Or you can pay off the vehicle yourself from line of credit/cash and obtain the letter from BMW then have buyer bring the cashiers check to you.

If I were the buyer I wouldn't exchange funds unless I had a letter from the financing company that there was no lien on the vehicle.

MOAB · 02-14-2010, 06:10 PM

how does financing with BMW work? If it is a 48 month term, can you prepay the balance early, without having to pay the remaining interest, or do you have to pay the present value of the interest remaining over the term?

AndreTheGeek · 02-14-2010, 06:20 PM

Quote:

Originally Posted by bosco

Both go to BMW have him bring 2 cashiers checks one for BMW to pay off the remainder of the vehicle one for you for the other portion to eqaute for the selling price. Have BMW issue the letter that vehicle was paid in full.

Or you can pay off the vehicle yourself from line of credit/cash and obtain the letter from BMW then have buyer bring the cashiers check to you.

If I were the buyer I wouldn't exchange funds unless I had a letter from the financing company that there was no lien on the vehicle.

I like the idea of both going to BMW - but BMW Finance is in Toronto, and I am in Ottawa. I can't pay off the vehicle in advance, since I can't be 100% sure the other party will buy the car until he actually does. I wonder if my dealer could help me take care of this...

AndreTheGeek · 02-14-2010, 06:23 PM

Quote:

Originally Posted by MOAB

how does financing with BMW work? If it is a 48 month term, can you prepay the balance early, without having to pay the remaining interest, or do you have to pay the present value of the interest remaining over the term?

You can pay it out any time with no penalty or closing fees.

stevenqdz · 02-14-2010, 06:27 PM

i usually just go to the local auto tag they did everything for me....

AndreTheGeek · 02-14-2010, 06:28 PM

Quote:

Originally Posted by stevenqdz

i usually just go to the local auto tag they did everything for me....

Dumb question - what's an "auto tag"? Dealer?

shipill · 02-14-2010, 06:41 PM

Quote:

Originally Posted by stevenqdz

i usually just go to the local auto tag they did everything for me....

OP is in Canada

bosco · 02-14-2010, 09:04 PM

Quote:

Originally Posted by AndreTheGeek

I like the idea of both going to BMW - but BMW Finance is in Toronto, and I am in Ottawa. I can't pay off the vehicle in advance, since I can't be 100% sure the other party will buy the car until he actually does. I wonder if my dealer could help me take care of this...

You dont have to go to BMW Finance. Yor dealer will mail the payment in as well. When I bought my car lease out at term I just brought a check and they mailed it to BMW finance dont see why they couldnt assist with this.

02-14-2010, 10:48 AM	#1
AndreTheGeek Lieutenant 16 Rep 463 Posts Drives: 335i E90 Alpine White Join Date: Feb 2007 Location: Ottawa, Canada iTrader: (0)	Newbie Selling Question I'm selling my car. I have an interested buyer, and now I'm wondering about how to actually do it. I still owe some money on the car to BMW Finance, so I'm not sure of the order of things. Naturally I don't want to burden the buyer with having a lien on the car, but I also don't want to pay off the lien until the deal is 100% done and I have the money. Has anyone done this with BMW Finance who can advise me as to the order of things? Thanks Andre
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02-14-2010, 01:09 PM	#2
aspiring335 Lieutenant Colonel 99 Rep 1,614 Posts Drives: 2019 G05 40i Join Date: May 2006 Location: Toronto, Canada iTrader: (0) Garage List 2006 330i [0.00]	I'm pretty sure you can have the buyer make out a cheque to you AND BMW Financial Services for the selling price. You can endorse the cheque and send it to BMW. Then BMW FS will send you the difference. __________________ 2019 G05 40i (premium excellence, m-sport, 2VR), Tesla Model S 100D, Nissan Leaf SL Volvo XC90 T8, Subaru Outback, E84 X1 28i, E91 328i xdrive, 6MT, VW Touareg TDI, E90 330i, E46 325iT, MINI Cooper S (all retired)
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02-14-2010, 02:22 PM	#5
da1nonly Private First Class 8 Rep 150 Posts Drives: E90 Join Date: Oct 2009 Location: Toronto iTrader: (1)	when i bought my car of another dude (private sale) we both went to his bank where he paid off his loan and the bank drafted a letter stating that there was no longer a loan out on the car. i had to fax this letter to my insurance so i could get the car insured. Not sure if u can do the same, meaning not sure if BMW works through any banks or if u can do a similar thing at the dealership.
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02-14-2010, 05:17 PM	#6
bosco New Member 0 Rep 24 Posts Drives: 335i Join Date: Jun 2008 Location: Vancouver iTrader: (0)	Both go to BMW have him bring 2 cashiers checks one for BMW to pay off the remainder of the vehicle one for you for the other portion to eqaute for the selling price. Have BMW issue the letter that vehicle was paid in full. Or you can pay off the vehicle yourself from line of credit/cash and obtain the letter from BMW then have buyer bring the cashiers check to you. If I were the buyer I wouldn't exchange funds unless I had a letter from the financing company that there was no lien on the vehicle.
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02-14-2010, 06:10 PM	#7
MOAB Major 24 Rep 1,077 Posts Drives: Porsche & BMW Join Date: Dec 2006 Location: Toronto iTrader: (0)	how does financing with BMW work? If it is a 48 month term, can you prepay the balance early, without having to pay the remaining interest, or do you have to pay the present value of the interest remaining over the term? __________________ March-November - '09 C4S (PDK, Akrapovic) December-February - '00 323 (only mod - snow tires)
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02-14-2010, 06:27 PM	#10
stevenqdz First Lieutenant 10 Rep 394 Posts Drives: 08 335xi e90 Join Date: May 2008 Location: VA iTrader: (8) Garage List 2008 e90 335xi [0.00]	i usually just go to the local auto tag they did everything for me....
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