Overhaulin'

How do i sell or junk my car even though I owe the bank $3,354 and they have the title?

Car broke down, trying to sell it to someone for less than what I owe or junk for less. Do i still pay the bank if I sell it to someone for $1,000?

Public Comments

1. Check the agreement you signed with the bank. you still have to pay them what you owe, even if the car is broken down. If you don't care about your credit, you could sell it without a title, but make sure the buyer knows this and plans to get rid of the car, because the bank will repo a broke down car. And yes, they will try to track down whoever you sold it to to get their car back.
2. It isn't your car to sell or junk, it belongs to the lender, that's why they have the title. You can pay it off and then do as you please with it of course.
3. You cannot sell the vehicle without the title. Any transaction you make will have to include paying off the loan.
4. Yes you still have to pay.
5. You will probably still owe them the money unless your state has very consumer friendly laws (i.e. a blue state, not a red one) or you have a good contract, which is rare. I would stop making payments and let them repo the car. That way, they'll be the ones who have to go through the effort of selling it. They'll probably fight to get a higher price because they think they won't be able to get much money from you. You'll probably still owe them the difference though. They might not try to get it from you though. They would have to bring an action in court and get a judgment against you before you would officially owe them the money. Lawyers are expensive. The bank might not consider it worth the effort to get a judgment for a couple thousand that you might not be able to pay them anyway.