Well now.

Curious Question, Curious George (Teehee)

If you are making payments on a car and you owe, let's say $14,000 on it and you sell it for $12,000, do you still pay the remaining $2000 or does that go to the person who purchases the car?

You do.
There may be ways around this, but generally speaking a business/financial institution will not release the title to a new/prospective buyer until/unless the all monies (including the $2000) for the car is paid in full.

So that means that I have to continue to make payments instead of them passing it on to the next owner?

Usually, yes...if you have an outstanding 14k note on a car and sell it for 12k you still owe 14k to the bank that gave you the loan. The debt is something entirely separate from the car itself.

Sometimes when someone else takes ownership of the car they will take over payments that are outstanding but it's pretty rare that someone is willing to do that.

You can't use the 12k received as a payment? What is escrow when it comes to cars?

Of course you can...it's your money to do with as you see fit. It's the smartest thing to do with it but you don't have to.

I should've also added that you can usually negotiate taking over a loan with an actual dealer...like if you still owe money on a car and use that car as a trade in at a dealer they will usually work with you to take over payments if it gets you to buy a car from them. It's individuals that generally won't assume your debt.

Escrow is money held in an account by a neutral third party until everyone is satisfied with the transaction...kind of a safety for both parties. You put the money up and it goes into escrow and then it stays there until you indicate that you're satisfied with the car and it meets your expectations (like if you want it inspected by a mechanic for faults or by a body shop to see if it's been in an accident before) before the money is released to the seller. If you aren't satisfied, the money isn't released back to you until the seller has the car back.

This is all great information thanks. I hope you don't mind if I pop up and ask more questions randomly. I'm still doing research, but sometimes I feel like I can get better information from someone who had experiences or truly knows what it is instead of going on random websites. So far I learned that I can settle some type of payment arrangement with the lienholders to get the title of the car from them. I think escrow can help.

I still don't have all the answers, but I'm doing what I can to gain knowledge.
Sell a car if you still owe money towards it.

Best of luck! The only thing I actually don't like about looking for a new car (I mean new to me...I always buy used) is going to a dealer and getting the thousand or so instances of "Can I help you? Just looking? I'll be over here if you need me. Decided yet? You looking to buy today? What are your needs for a car? Can I help you? You sure? Can I help you? What kind of budget are you working with? Do you have a trade in? Can I help you?"

And that's just in the first ten minutes.

That's nothing. I went to a Ford Dealership on Saturday and went through that in the first five minutes.

I wonder, they say when to call the lienholder and get the payoff amount, the payoff amount will be different from the amount owed, does it apply if you're "upside-down" on your loan(You owe more than the car is worth)?

I'd think so. The payoff amount is lower because it's subtracting interest that you would otherwise be paying out if you paid in installments, so it shouldn't matter how much the car is worth versus your amount owed.

Cool. I think.

Yes -- unless there is some details of the transaction you are not telling us?

The prospective buyer is buying at $12 grand, not $14 grand ---
that doesn't 'sound' to me that he's willing to take over the payments --- which would end with him paying a lil bit more than
the $12 grand that he/she is agreeing to right now - per you.

As to the other details/questions/info shared in the other posts of this thread -- it's all true.

Depending on the circumstances.
And depending on the lienholder, and depending on if you get the new/newer car from the same place or not.

All would depend on discussions ahead of time with the place that holds the title for your current vehicles
and the place where you end up buying the different vehicle --- same place or not.

Also would hugely depend on whether it is done through a dealer and/or financial institution, or if it be a 'private'/personal sell (or buy). Normally, for these sums of money --- there is some type of dealer or financial institution involved.

Good luck with your research and acquiring a vehicle
of your choice.

Well there are some details I am a bit embarrassed to put on here due to my stupidity last year.



Would it be better to sell it to a dealership? I hear it's a lot simpler in a way than selling to a person.