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  1. #1
    Join Date
    Jun 2019
    Posts
    1

    Default Selling a Co-Owned Car That Isnít Paid Off

    When I bought my car at the dealership, I had a relative co-sign for me. I am now learning they actually a signed as a co-buyer (even though they too thought they were purely co-signing, and have absolutely no interest in owning the car). I am now looking into selling the car, and my question is does the co-buyer still need to sign off on this even though the bank still has the title? Also is the title in the name of the bank or would it still have our names on it, just the physical location is the bank? Because Iíve read when you have the title in hand, I COULD sell the car so long as our names had an ďorĒ in between them, but I have no idea what happens in this case

  2. #2
    Join Date
    Jan 2006
    Posts
    38,734

    Default Re: Selling a Co-Owned Car That Isnít Paid Off

    What state are you in?

    the title should be in your name and presumably the co-buyers name. The bank is only a lien holder.

    If the other person is an actual co-buyer and their name is on the title, yes, they would need to sign the title as well as you as long as their is an “and” or no designation but simply listing your names.

    Even if had the title, it would still show a lien on the title. You would not be able to transfer the title until the lien holder released their lien.

    You need to contact the lender as ask them how they deal with this sort of issue.

  3. #3
    Join Date
    Mar 2013
    Posts
    17,217

    Default Re: Selling a Co-Owned Car That Isnít Paid Off

    Quote Quoting farmergabe
    View Post
    When I bought my car at the dealership, I had a relative co-sign for me. I am now learning they actually a signed as a co-buyer (even though they too thought they were purely co-signing,
    I'm guessing that nobody paid much attention to what they were signing.

    Quote Quoting farmergabe
    View Post
    I am now looking into selling the car, and my question is does the co-buyer still need to sign off on this even though the bank still has the title? Also is the title in the name of the bank or would it still have our names on it, just the physical location is the bank? Because I’ve read when you have the title in hand, I COULD sell the car so long as our names had an “or” in between them, but I have no idea what happens in this case
    Contact the lender.

    You may have to bring the buyer to the bank with the cash to pay off the loan before the lender will release the title. Depending on the lender and where the title is kept, the buyer may have to hand over the money and then wait to receive the title. A buyer would have to be a fool to do that which is the inherent problem of selling a car with a loan balance.

    The alternative is for you to pay off the balance, get the title released, and then sell the car.

  4. #4
    Join Date
    Jul 2018
    Posts
    1,732

    Default Re: Selling a Co-Owned Car That Isnít Paid Off

    Quote Quoting farmergabe
    View Post
    When I bought my car at the dealership, I had a relative co-sign for me. I am now learning they actually a signed as a co-buyer
    Are you talking about a single person (as "a relative" implies) or multiple relatives (as is implied by "they")?


    Quote Quoting farmergabe
    View Post
    I am now looking into selling the car, and my question is does the co-buyer still need to sign off on this even though the bank still has the title?
    If your relative(s) is/are on title as (a) co-owner(s), then he/she/they will have sign off on any transfer. That the lender has the title is irrelevant.


    Quote Quoting farmergabe
    View Post
    Also is the title in the name of the bank or would it still have our names on it, just the physical location is the bank?
    No one here has any conceivable way of knowing.

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