How to Sell a Vehicle With No Copy of the Title

All states require you to have the title of the vehicle you own; this may pose a problem if you want to sell your car but don't have the title. You can simply request a duplicate title if you lost the original title, but you and the buyer will need to follow a few more steps to legally complete the sale if you do not own the title. Your financial institution owns the title to your car until you pay off the loan, so you must pay off the loan at some point so you can transfer the title to the buyer.

Instructions

Selling a Car if You Lost the Title

1

Visit the Department of Motor Vehicles' "Replacing a Lost Title" website (see Resources).

2

Click on your state.

3

Follow the instructions listed for your state, as all states have different steps you must take to replace a lost title. For example, Minnesota requires you to fill out a duplicate title form and pay fees, whereas Delaware requires you to fill out a duplicate title form, include your license number, a fee, the current odometer reading on your car, tag number and expiration date. Most states allow you to mail in the form or fill it out at a local DMV office. You will typically receive your duplicate title in the mail within 15 days.

Selling a Car if You Do Not Own the Title

4

Schedule a date to sell the car with the buyer, and tell him you would like to meet at your bank and will pay off the loan once you receive the money so that you can sign the title over to him.

5

Call your bank. Tell them you would like to pay the remaining balance of your car loan so the lien will be released. Inform them of the date and time.

6

Meet the buyer at the bank. Hand the teller the required amount of money to pay off the loan. The teller will give you the title. Sign the title over to the seller to officially complete the transaction.

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How to Sell a Vehicle That Is Not Paid Off in California?

California laws allow for a change of ownership for a vehicle even if it has not been paid off. The process for title transfer is straightforward, but to sell a vehicle that is not paid off in California the current owner must obtain an authorized signature from the vehicle's lien holder. The lien holder is the entity that legally owns the vehicle, according to the Department of Motor Vehicles' records. This ownership is reflected on the vehicle's Certificate of Title or "pink slip."

Instructions

1

Obtain or provide a smog certificate that is less than 90 days old. Hybrids, electric, diesel and natural gas vehicles over 14,000 pounds are exempt from this requirement. Motorcycles, trailers, vessels and automobiles made before 1975 also are exempt.

2

Enter the odometer reading in the designated area on the California Certificate of Title. Vehicles older than 10 years are exempt from this step.

3

Sign and date the title in the appropriate section.

4

Obtain the lien holder's authorized signature in the appropriate section. Have the signature notarized to avoid future conflicts.

5

Ask the buyer to fill out and sign the transfer information on the back of the title.

6

Visit the DMV's online Notice of Transfer and Release of Liability system and follow the onscreen instructions (see Resources). This step must be completed within five days of the sale of the vehicle.

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Is it Difficult to Change a Loan Over to a Different Car?

If you want to cancel one vehicle loan and finance another, expect to pay off your current loan first and then apply for financing for the other car you want. You can't actually transfer a car loan to another vehicle, because the vehicle is not the same. You can, however, trade your vehicle toward another purchase, or sell the car on your own to satisfy your current auto loan.

Vehicle Value

Auto loan providers base a loan amount on a vehicle's market value. For this reason, you can't transfer a loan to another car; the new vehicle you want to finance is assessed differently. Lenders base your loan amount on the vehicle's market value, which depends on its year, make, model, mileage and features. So, you aren't likely to obtain a $20,000 loan on a vehicle worth only $10,000. Even if you purchase the exact same vehicle, you aren't guaranteed that both vehicles are worth the same amount. Your vehicle may be depreciating faster than you're paying toward your loan, or other market conditions may create a difference between your car's original and current lending value.

Credit Information

Having an approval for one car loan does not guarantee another car loan approval. Any time you alter a loan or initiate a new finance contract, the lender reviews your credit information and credit application to determine whether to extend a loan. Based on your payment history, current accounts and credit balances, your lender will adjust your interest rate based on your lending risk. You may still obtain another loan, but perhaps with a different interest rate if your credit has changed.

Trade Process

If you plan to purchase a car from a dealership, you can trade your vehicle in toward your new car purchase. To take your car for a trade-in, your dealer must pay off your old car loan. Many dealerships also handle financing for customers, so you can use your dealer to find a new auto loan provider, as well. The trade process is very similar to selling your car, except your dealer handles most of the paperwork. Once the trade-in process is complete, you'll pay only your new auto loan provider.

Private Sale Process

You can also sell your old car before you purchase a new one. Make sure you have been pre-approved for a loan before selling your old car. To sell your car while it still has a loan, you'll have to find a buyer and satisfy your loan to officially transfer ownership to the new owner. Talk to your bank to find out how much you must pay to satisfy your loan amount. If you can sell your car for more than the loan payoff amount, you may keep the profit. Otherwise, you'll have to come up with the remaining balance due for your loan.

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How Can I Tell How Much My Car Is Worth?

Several websites offer appraisal guides to help you determine your vehicle's value, whether you plan to sell it privately or trade it in toward another vehicle purchase. Other factors may affect your vehicle's value, such as market conditions, buyer interest, availability or necessary repair costs. Use any resources available to you to ultimately determine your vehicle's value.

Online Resources

Edmunds.com and the Kelley Blue Book website provide appraisal guides for trade-in and private sale values. The NADA Guides website, which also provides values for dealerships, offers an appraisal guide for trade-in values. The websites are guides only and do not necessarily offer a definite price for your car. Use the values from all three sites to determine a fair value for your vehicle; each website offers a different price. The websites also allow you to choose the condition of your vehicle, so choose the one that most accurately reflects your car's condition for more accurate pricing.

Check the Classifieds

Although the appraisal websites take your location into consideration, you can further determine the value of your car by searching the local classifieds to see how other sellers have priced their vehicles. Use your local paper, or websites, such as AutoTrader.com, the AllofCraigs website or the eBay Motors website. Be careful not to use dealer sales prices, as retail prices are higher than private sale values. Ensure that the vehicles you research have the same engine, transmission and features as your car.

Situations that Affect Value

If you were able to find results for similar vehicles in your area, you may have noticed that actual sales prices were higher or lower than results from appraisal guides. If gas prices become a concern for consumers, you may not sell your car for its suggested value because of lack of consumer interest. Or, if you have a rear-wheel drive sports car, you may benefit from waiting until the spring or summer to sell it, rather than the beginning of fall if you live in an area with snow.

Dealer Appraisals

If you plan to trade your vehicle toward another purchase, your vehicle's actual value relies on the dealer's appraisal price. The dealer's offer should be close to the values you obtained on your own. If the dealer's offer is lower, find out why. If your dealer finds that your car needs new tires, repairs or body work, it must decrease the costs from its appraisal value. If your car is in good condition and is likely to sell quickly, the dealer may offer you a higher value.

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Lien Holder Rights in Repossession of a Vehicle

A lien on a car is a common occurrence. Typically, when a person finances a car purchase, the financing company has a lien on the car. The company reserves the right to repossess the car in the event of nonpayment by the purchaser. However, repossession rights are strictly regulated.

Rights of Repossession

The right of repossession belongs to the person or company that holds the title to the vehicle. The lien must still be valid. If the lien has been paid off but the title has not yet been transferred, the lien holder cannot repossess the car. The person repossessing the car must have the original documents detailing the lien and the powers that the lien grants to the repossessing party. If the repossessing agent does not have those documents, the company can still repossess the car if it has a valid court order authorizing it to do so.

Methods of Repossession

The lien owner must have attempted to collect the monies owed to them. In the absence of payment, the lien owner must notify the possessor of the vehicle of his intent to repossess. Afterward, the lien owner may repossess the car. The company can perform the repossession at any time and is authorized to come onto the property of the possessor of the car to do so. However, the company and its agents are not allowed to enter an enclosed structure, such as a garage, for the purposes of repossession.

Recovery

After the vehicle has been repossessed, the lien holder must notify the possessor of the repossession and let the person know how he can reclaim the vehicle. If the possessor does not pay the amount owed, the lien holder is authorized to remove any personal possessions and sell the vehicle. Additionally, if the possessor wishes to reclaim the vehicle, he will have to pay the full amount owed. This portion includes late fees, the amount owed and the cost the lien holder incurred while repossessing the vehicle.

Resale

The lien holder must sell the car. This process can be either achieved through a private sale or a public auction. The lien holder may not sell or keep any personal belongings that were in the car at the time of the repossession. This stipulation does not include any improvements that the possessor made to the vehicle, such as an upgraded radio. If the amount the lien holder makes from the sale does not cover the amount owed, the lien holder may pursue the possessor for the difference. However, if the lien holder makes more than the amount owed, he is entitled to keep the difference.

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A Car Is in Repo & the Company Won't Settle

A bank or other lender that won't settle after repossessing your car may simply be positioning itself for a better offer from you. The bank may simply feel you have not made a reasonable offer to settle a so-called "deficiency balance." The deficiency balance is the amount remaining on your auto loan after the repossession. The amount is determined after the bank sells your car at an auction or through a private sale. Example: The balance on your auto loan was $10,000 when the car was repossessed, but it sold for only $6,500 at auction. That leaves $3,500 plus repossession fees remaining, and the bank wants that money from you.

Legal Representation

The bank can file a lawsuit against you for the deficiency balance, and that can result in a civil judgment ordering you to pay the full amount. If you fail to pay, the bank can return to court to request a written court order allowing the bank to garnish your bank account or wages for the amount that you owe. The threat of a judgment or garnishment means you should seek the advice of a credible consumer affairs attorney. The attorney can advise you about your legal rights and help you prepare to defend yourself against a lawsuit, if necessary. Ask for free help from your local chapter of Legal Aid if you cannot afford an attorney on your own.

Federal Law

The lawyer can determine if the bank followed the law as it sold your vehicle and determined the deficiency balance. The Federal Trade Commission reports that the lender must sell a repossessed vehicle in a "commercially reasonable manner." That means the lender cannot sell the car for a price that is far below fair market value and then expect you to pay an unreasonable balance.

Opening Negotiations

A letter from your attorney offering to reach a fair settlement will indicate to your bank that you are serious about resolving the issue. The attorney can challenge the lender on the selling price of the car, and argue that the price was not fair. It doesn't matter if the price was fair or wasn't. The tactic can be used as a negotiating ploy by the lawyer as he tries to negotiate a fair settlement.

Written Documentation

The attorney should provide you with written documentation of the settlement that is signed by an officer of the bank. The settlement should detail the entire agreement, including how much you are required to pay and when. The settlement should also indicate that you will not be sued as long as you pay the amount agreed.

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Car Repossession Rights in Indiana

A vehicle loan is a secured loan where the vehicle serves as collateral. Therefore, if the vehicle owner defaults on the loan, the lender can repossess the vehicle and then sell it to at least partially make up for its losses. In Indiana, both the lender and the borrower have certain rights when it comes to repossession.

Banks' Rights to Payment

In Indiana, banks extending vehicle loans can repossess their collateral after one missed payment if their contracts contain acceleration provisions. An acceleration provision allows the trustee or bank to demand immediate payment of the remaining loan balance after just one late or missed payment. After repossession, banks typically sell their repossessed cars and file lawsuits against borrowers who defaulted on their loans for any remaining loan balance after the sale.

Legal Consumer Protections

In Indiana, consumers who paid less than $3,200 for their vehicles have legal protections against acceleration clauses. Creditors may not both sue borrowers and repossess their vehicles. Indiana requires banks to use only one of two available remedies: either file a lawsuit or repossess. Lenders who choose to repossess their ownership rights may not sue buyers for the remaining loan balance.

Identifying Information Required

Before repossession agencies repossess cars, agents must provide local law enforcement with repossession disclosures. Repossession agencies must disclose their identities, their intent to repossess, the vehicle owner's name and address and the address where the repossession will occur. Repossession agencies must provide this information before the repossession or within two hours after the repossession.

Peaceful Repossession Requirement

Under Indiana law, banks can freely repossess their vehicles after providing notice, but they must also comply with the state's order and peace laws. Banks cannot repossess their vehicles by damaging property, using force or violence or disturbing the public. Banks that violate the peaceful entry requirement may be liable for resulting damage costs.

Considerations

Since consumer protection laws can frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.

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