Overhaulin'

Whats the process to sell a used car with a lien?

Im not sure if its the best way to go, but im wanting to sell my used car to my brother in law, should i just do a bill or sale and put a lien on the title or what? Basically he wants to make monthly payments on the vehicle to me, have insurance and tags in his name, etc... and i want to insure i have documents proving sale, to ensure complete payment even if the vehicle is totaled at any point... basically cover my ass just in case... whats the best way to go?

Public Comments

1. I would go to a Notary Public both you and your Brother in law. There fore it will be witnessed and legal and binding when done by them.
2. The bottom line is you don't own the car until you pay off the note and receive a clear title from the lien holder. So, you can't legally sell it without the lien holder's approval. If you own the car with a clear title, you are really financing the car. This is the best way you should go: If your B-in-Law has good credit, he should finance the car in his name through a bank or credit union. Then he can register the car in his name. It is important that you remove your name from any documents (registration, co-owner) that can hold you responsible (financially and legally) relating to the car's operation. And you get your money up front. If your B-in-Law can't finance the car, then work with the DMV to have you listed on the title as the lien holder. You retain the original title until the loan is paid off. Then you go through the process of signing over the title to your B-in-Law. Also, make sure he has full coverage listing you as the payee for any claims for damage to the car. If your B-in-Law totals the car and the insurance does not cover the loan balance, can you trust him enough to continue paying for a car that he can't drive? Are you willing to accept the loss for the balance owed?
3. selling to a relative can lead to a family fight. i agree that it is best to have you b in law get financing for the full sale price from a bank or credit union. by doing this it is a clean transaction. if you agree to have him pay you, you are not receiving interest on your money, and what penalty is there for non payment or late payments, how are you supposed to collect payments from him. as you can see it can become a hassle. you may think you are doing him a favor by selling direct to him, but the risks are not worth it.
4. Be honest,It will take a while to find the best answer for the your question.give a look at resource here http://www.AutoInsuranceFree.info/free-auto-insurance.htm for your reference .