How to sell a vehicle that is still financed
 

Hey guys, sorry if this is already been asked, I have searched and could find no answers.

This is my situation, I have found a buyer for my 2009 cobalt ss which is still under financing. We have agreed that the buyer will pay off the remaining amount (13 000) and pay me 3500 ontop.

She will need to pay ALLY canada the 13 000 in bank certified funds. Now my question is when does the title transfer actually occur? and when should I hand over the keys to the car? When she pays, its not an instant thing is it?

Maybe some of you guys that have done this can point me in the right direction.

Just confirm with Ally that the $13000 had been deposited in order to pay off the amount that you have owing.

The moment Ally accepts the certified bank draft, you should sign the papers and hand the keys to her. It's an instant thing!

I believe you can transfer a title with a lien on it so be careful. I've done one transaction like this so here is my experience.

Go with her to the bank, show her the car title and ask her to pay the bank on the spot. Explain to the account manager exactly what is happening so she, too, can trust that you're not doing anything sketchy. If it goes bad, you and her both have plenty of witnesses.

The payment (the lien and your amount) should be something that will clear instantly (cash deposit or checking account transfer). The account manager will tell you that the lien is unofficially cleared--they won't be able to produce an official letter until 3-4 weeks later. However, they can instantly produce a letter saying the bank has received the payment and an official lien release letter will be available later. Ask for that letter and give her a copy. Also ask the bank for the receipt of the transaction and give her a copy. The official lien release will be mailed to your address. You can forward her that later but make sure you edit out your personal information.

Offer her to bring her own witness for her benefits. Do not sign the title over until the money is in your account. No "sign the title over and I'll give you the money" BS. A reasonable individual should agree to these above steps. If not, it's potentially too risky and you should walk for your sake.

After that, ask her to go to an Autoplan broker with you to complete the transaction--the title needs to be updated under her name, she needs to get insured and new plates; you must cancel your insurance and take off the old plates.

Thanks all. The only thing is ALLY does not have a branch here like BMO or RBC or Vancity. I think my only option would be for her to produce a bank certified cheque or bank draft and give it to the dealership which will in turn courier it to ALLY(former GMAC). Then we would head to the bank where she will give me another bank certified note or cash to deposit the money into my account. Then we will travel to autoplan where the title will be signed over and insurance taken off on my part.

Does that sound pretty safe to all of you guys?

thanks in advance again

Get her to meet you at the dealership and have them send the certified check via courier to Ally.
At the same time, accept the 2nd certified check from her (you deposit this any time you want). Usually at this time, I would sign the papers and hand over the keys.
I've sold 3 cars before and have received a certified check as big as 18g's with no issues.

There's no absolute need for you and her to go to your bank together to deposit the certified check or go to an insurance company together to sign the paperwork.
You can do all this separately. Hope it all works out for u!

Thanks all, car successfuly sold today!