How to Sell a Private Car Loan

Loaning money to someone for a car loan will give you a profit if you have a signed contract detailing payments that add interest to the price of the car. This investment poses risks that may or may not materialize during the life of the loan. Once the contract is signed you cannot back out of the deal, so you are stuck being the lender. There are financial institutions that will buy this loan from you if the car owner has a good credit rating.

Instructions

1

Approach bank managers and loan officers. Supply a copy of your contract and the title listing your lien.

2

Negotiate a price with any interested parties. Collect three offers from financial institutions.

3

Choose the highest offer from the three choices. Review the contract supplied by the bank. Have an attorney to explain any parts of the contract you do not understand. Sign the sales contract.

4

Sign the title to release your lien. Collect your check from the buyer. Notify the car owner of the sale and direct him to the bank that now owns the loan.