I'm selling my Mini to make way for a new car and still owe some money on the car to Mini Financial. I live in NY (not sure if that matters) and have always leased in the past.

How do I go about selling the car if I still owe money to Mini? What's the general process to do this in a way that's both comfortable and secure for the buyer and seller.

Thank you!

p.s. if anyone's interested here's the car...
https://www.northamericanmotoring.co...ml#post3992804

Best,
Gene

 

It's been years since I sold a car to private party but I am pretty sure it has not changed much... MINI Financial has to have the full payment to satisfy the loan and will be releasing the lien/title to the owner. What I did before, knowing that my buyer will definitely buy my car, I paid it off myself at the bank where the loan was and had the title in my hand at the same time. I had to make arrangements with the bank to make this happen and they were glad to have helped me. I took a risk but worked out at the end.

Saw your video. Once saw a documentary on it and it reach out to me in many different profound levels. Thank you!

 

Exactly as Joeygonz stated. As a buyer you would be a total nut job to buy a car with a lien in place. Clean title or no deal.

 

Not that hard to do. If you have the difference between what is owed and what it sold for, just go to your bank with the buyer and pay off the loan. The bank will take care of transfer of the title. If the buyer is financing, then have the buyer's bank contact mini financial and make arrangements. It isn't that hard or complicated.

 

Not a big deal, at least not in AZ. I've sold several autos over the years, some with a lien on the title. Meet with the buyer at the bank that is holding the title. Receive buyer money, add some of your own if you owe more on it than the purchase price, give to bank. They then turn over title with lien release. Buyer then takes title and lien release to local DMV to get new title. It's a bit more complicated if buyer is financing. At any rate, contact title holder and ask them..

 

The bank is BMW Financial. I don't think they have a retail shop! What do I do in that situation?

The vehicle will be sold for, god willing lol, more than what's currently owed.

Best,
Gene

 

Thank you my friend. Needless to say it greatly impacted me too!

Best,
Gene

 

How about calling them and asking?

As stated before, the bank (aka BMW financial) has to have the $ from you to pay off the outstanding balance before they will release the lien and give you a clear title.

Sent from my iPad using NAMotoring

 

With the right buyer, you should be able to pull this through. Special handling and accommodations from both MINI Financial and your buyer will be required you just need to facilitate it though. You have a very nice MINI and anyone interested would do whatever it takes to buy it. I've seen and heard stuff like this and everyone walked away happy. GLWS!

On a quick side note… The Cove had a same impact on me much like Tikilum's journey.

 

I'd give your closest Mini dealer a call and ask to speak with a finance manager - they should be able to help facilitate this.

 

I would let the buyer's bank handle the payment with BMW.

Most buyers are not going to hand over thousands of dollars to a stranger.

 

This is not rocket science.

You and the buyer contact the lien holder, in this case MINI Financial, and follow their specific procedure.

 

I would not buy a car from a buyer if he did not have the title in hand...or if I did I would expect a DISCOUNT for the risk and extra work involved with dealing with HIS BANK or waiting...
PAY OFF THE LOAN....get a small personal loan at the credit Union if needed...sell the car...pay off the personal loan....simple.

 

This is a common practice. Most finance companies have a form for it. Sometimes has to be notarized. But essentially the buyer gets a cashier's check made out for the purchase amount made out to the finance co. The form and the check (and additional payment from you if agreement is less than loan amount) are sent to lender, after which title is issued to the new owner. Have done it myself (not with Mini); had the buyer accompany me to the post office. Will obviously be easier to sell to someone familiar with the process. After you are familiar with how Mini facilitates this type of exchange, you may recommend your buyer call Mini to gain assurance on how the process works in general. Lots of work, agreed.

 

There may be something that you're overlooking...sale tax. I'm in a similar situation, I have a 2012 VW CC coming out of lease in about a month. (I just leased a new Cooper S). If I were to buy the lease out I think I would be on the hook for 8% Ohio sales tax, and when I sold it the buyer would have to pay it also.

 

Depends on the state. AZ does not tax personal buyer/seller transactions..

 

In Arizona you will pay the tax when you register the vehicle in your name.

 

Yes, there are fees you pay when you register a car, but you don't pay sales tax on the transaction like a lot of other states. Every few years they (AZ gov) tries to pass a law to collect the sales tax on private sales, which dealers would dearly love, but so far hasn't happened.

 

I see lots of suggestions to pay the car off to have the title in hand. That is not always possible and not always ideal.

I recently bought a car from a private party out of state and my first bank would not let me buy private party without the title in hand or paying his bank. So the seller paid his car off after we negotiated price and he had the title. This meant my first bank would require the title to his car before issuing a check. No sane person would send their title to a bank without payment.

So I went to a second bank and they sent a check without issue, but they are awesome like that (PenFed).

Knowing all of this, a buddy is buying a car that has a loan on it and it is private party. He went to the same bank as my first bank and they are wiring the money right to the car owner's bank to pay for the car and then the previous owner's bank releases the title to my buddies bank...much easier to have the banks handle the money than you try to play middle man IMO. I recently did this same transaction when we sold a car 2 months ago. Buy's bank paid our bank and car was released. The buyer pays taxes when they register the car.