Overhaulin'

if the bank has a lien on a car can you sell it to another party? Also, if so how do they carry the insurance?

I have a family member that wants to make payments on a car I have. The loan is through a bank. I want them to carry the insurance and also, i plan on making a bill of sale.

Public Comments

1. to sell your car when there is a lein on it u must first pay off the lein.. dealers usually do this for u if you trade ur car in for a new car.. i dont understand what ur asking about insurance. u mean like transfer insurance??? if so u dont u just cancel ur and the new owner has to all their company and start a new policy for the car.
2. You can't legally sell them the car without transferring the title. Anyone can get insurance on a car they drive.
3. You cannot legally sell or transfer ownership of a car to another person without having the lien removed.
4. No. You can't make your bank approve your family member, and make them part of your loan. What you could do, is ask the bank (since they hold the title and are the legal owners of your car) ask the bank to add your family members name to the title ( the your names listed "AND" and not "OR". So it's Me AND jimmybob, not Me OR jimmybob.) Then tell your insurance company of the change. Of course this doesn't release you of any liability or responsibility. The bank and insurance company never question who paid the payment. Forget the bill of sale. You are not selling your car. Unless you can pay the lien off in full.
5. Essentially, you want your family member to assume the payments. To do this, they would have to apply to the bank to do so. Once approved, the bank will (usually) take care of the necessary paperwork to put the car in your relative's name. For specific details, contact the bank that has the lien on the car.
6. You will have to have the person get approved to take over payments, or get approved from another bank and get a check from the new bank and send the old bank the check to pay off the loan, then the person will be making payments to the bank who issued the check.
7. You can sell it, however, you can't sell the loan. So, you have to sell it for enough to pay off the loan, and write a bill of sale stating the vehicle is free and clear of liens. You can only issue this bill of sale when you have received CERTIFIED payment, made out jointly to yourself and the bank holding the lien. If the person wants to make payment, he has to get his own loan to pay directly the bank holding your lien.
8. You should not let someone "take over payments". You would still be the legal owner of the car and would have to carry the insurance. If anything happened to the car while the other person was driving you would still be fully responsible. Besides all of that, a car with a lien cannot be sold to anyone Your family member should simply buy the car from you, get their own loan, title and insure it in their name.