Another post looking for advice. Selling a car with a lien

"sefeing, actually bought an E46" (sefeing90)
02/05/2015 at 11:16 • Filed to: Carbuying, carselling, wrx, wrangler, fost, xterra

so, to start this off, I love love love my FoST. But with a recent promotion at work, I just cannot justify it. With this promotion, ill be driving in / around NYC almost every day, with a trip up to Rochester twice a month. I'll be putting over 2k miles a month on a car that I am paying off, and killing the value of the car. It made sense when I was driving between westchester and Greenwich, but I'm beginning to want something that I don't need to worry about as much and don't have a loan on.

How tough is it to sell a vehicle with a lien on it?

What I'm thinking of replacing the FoST with (hear me out) is either a used WRX, Wrangler or Xterra. I love all three of these, but having a truck with 4x4 will benefit me most in the winter, as well as pothole negotiation. I lost two wheels to potholes in my FoST the year I've had her. With driving to Rochester, AWD or 4x4 looks like a good option to me. Even in the city I'm snowed in the past 5 days and that's with dedicated snow tires. I'll be taking a hit financially selling this, but I think the sooner the better to get the most value.

To add to this:

I'm realizing I shouldn't have bought a brand new car when I did. I was living rent-free at the time, but was moved around, and am now paying rent. I'm cutting it close every month, due to the fact that NYC rent is expensive and absurd. Getting rid of that 270/mo will let me at least get that into my savings account, and that's important for me at 24.

Oppinions?

DISCUSSION (36)

themanwithsauce - has as many vehicles as job titles > sefeing, actually bought an E46
02/05/2015 at 11:20

Step 1) Trade FoST for FiST for better fuel economy and insurance

Step 2) Buy cheap Xterra or whatever

Step 3) Win all the things, all the time, forever.

SlickMcRick > sefeing, actually bought an E46
02/05/2015 at 11:24

So is the main reason you're considering selling the car because you want AWD for the winter or because you don't want to put 2k a month on the odometer?

Nothing > sefeing, actually bought an E46
02/05/2015 at 11:28

It's easy to sell a vehicle with a lien on it. Hopefully, you're not upside down on the car. If so, you'll just have to pony up the difference to get the title released.

Fuel economy in any truck like vehicle is going to suck, something to factor in to those 2k/month miles.

Pixel > sefeing, actually bought an E46
02/05/2015 at 11:29

Never done it myself, but from what I know you basically contact the lender and find out what the payoff amount is and how you arrange to pay it and get a title. You find a buyer and you & the buyer show up at wherever the lender arranged and he pays them they purchase price and either you get a check from the buyer for the difference, or you pay the lender the difference between amount owed and amount sold for, then the lender gives the buyer the title and everyone is settled up.

It is a common enough thing the lender should be able to walk you through it without too much hassle.

dogisbadob > sefeing, actually bought an E46
02/05/2015 at 11:33

If resale value matters that much, you should've bought a Honda.

It's a car. it's meant to be driven.

Anyway, you might get a good deal on a late-model SX4 or Matrix AWD.

'Wägen, EPA LOL > sefeing, actually bought an E46
02/05/2015 at 11:34

Rochester isn't that bad. I've always driven a FWD with great all seasons or dedicated snows in the winter and had no problems around Rochester, Buffalo and the thruway between there and the city/Philly/north country way up 81. Same goes for the wife's car - though she did put it into a ditch once. I blame her for that one though since I was able to drive out there and pick her up long before the tow truck got there.

You'll get better mileage and lower drivetrain loss if you looked at something FWD. For what its worth, I drive a JSW if you couldn't tell.

Selling a car with a lien isn't too difficult - you just need to pay off the lien with the funds from the sale. You will get a document that the new owner can use to clear the lien from the title when they register the car.

Twinpowermeansoneturbo > sefeing, actually bought an E46
02/05/2015 at 11:39

The piece that no one is mentioning here is that it takes TIME to process a lien payoff. It's about two weeks to process that the lien is paid, and another three or four for the title to show up at your house. Almost all buyers want to purchase the vehicle when you have the title in hand for registration purposes. So this means you will most likely have to come out of pocket to pay off your lien, before you even have funds from the sale to cover it.

crowmolly > sefeing, actually bought an E46
02/05/2015 at 11:46

If you are going to be racking up that many miles you may want to consider a vehicle that's much more fuel efficient that what you have listed.

Regarding the lien, Pixel seems to have nailed it.

E92M3 > sefeing, actually bought an E46
02/05/2015 at 12:34

I think the opposite of you. I work from home now, so it doesn't make sense to have a car payment on a car that see's 100 miles a week. A beater would be better.

If I was spending a lot of time commuting then it makes sense to have a newer car that's comfortable, has some conveniences, and is less likely to breakdown. I'd be using the car more which would justify the payment.

Back to your question selling a car with a lein is common. The buyer pays the bank, who then releases the title to them (or their bank) Then they pay you any difference (assuming you don't owe more than it's worth). You bank can provide the paperwork for the transaction.

Coffey_stain > sefeing, actually bought an E46
02/05/2015 at 13:18

My roommate has a 99 Dodge Neon with 64k on the dash. Power windows in the front, manual in the back. We live in Rochester. Bring the ST and he said he will trade you strait up.

Even leaving in the cassette/ipod adapter.

Deal?

Deal.

pleasure doing business

sefeing, actually bought an E46 > themanwithsauce - has as many vehicles as job titles
02/05/2015 at 15:37

Haha, if only.

sefeing, actually bought an E46 > 'Wägen, EPA LOL
02/05/2015 at 15:38

Hmm. didn't even think to look into a TDI, but not bad. Gas I'm not too worried about, as my employer will be the one paying for that. I'm mainly looking for something that will take the beating of NYC streets better than my hot hatch. PLUS, I'd like some 4x4 action.

Big Bubba Ray > sefeing, actually bought an E46
02/05/2015 at 15:44

I say hold onto it, but what the hell do I know? haha

If you're concerned about it losing value when you eventually want to sell it, then why take a hit on depreciation right now? Either way, you're not coming out ahead. Cars are meant to be driven. Hold on to it, pay it off and drive on. I love putting miles on my car. I put nearly 5,000 on my Z driving it daily for three months. I'm not looking to sell it down the road so it didn't bother me.

You say you lost two wheels due to potholes and what not? My suggestion would be to buy some cheap steelies or whatever. Diamond racing makes some bad ass steelies and they're cheap. You could also put winter tires on those so you wouldn't need a 4x4. Save gas and still have fun driving.

sefeing, actually bought an E46 > SlickMcRick
02/05/2015 at 15:45

It's a combination of the two. I'm nowhere near upside down on the loan, but I need something more durable for one. AWD / 4x4 for the winter is a big plus. I have a dedicated snow setup on the car, and I STILL cannot get out right now. I'm also very anxious about owning a new car in such an urban area. I grew up in NYC, and saw what happened to my parents cars consistently. My father's 2011 Prius' back bumper was destroyed within a year of owning, and it was almost always parked inside our garage overnight. When I bought my FoST, I was up in Westchester, and it was parked in a garage.

sefeing, actually bought an E46 > dogisbadob
02/05/2015 at 15:46

And I agree. It's a Ford, not a garage queen Ferrari. But with the mileage I'll be putting on it, I'll be upside down quick. PLUS, this monthly payment can turn into rent for a nicer apartment, or more into my savings account.

sefeing, actually bought an E46 > crowmolly
02/05/2015 at 15:46

While I totally understand that, my employer will be paying gas for these long trips, so gas will rarely come out of my own pocket, which is nice.

sefeing, actually bought an E46 > E92M3
02/05/2015 at 15:48

I can see it from both points of view, and that was my mentality when I was doing 50mi a day, instead of 100 or 200, or the 600/ twice a month that I will be. With that, it'll leave me upside down on the car quick. Now that I'm paying rent, car payments are making it tough to pay rent and car and still remain positive every month. I admittedly should not have purchased a brand new car.

sefeing, actually bought an E46 > Big Bubba Ray
02/05/2015 at 15:52

You're not wrong. I am considering this route too. Since I moved into my own place however, I'm also realizing my savings account dip further and further. Maybe this will change once I start commuting more, since I'll be expensing almost all my fuel. I bought the car when I was living rent free, but because of work, that's not possible anymore.

I've been rocking steelies as my winter setup, and it's admittedly amazing for potholes and such but I can't see doing 18 inch steelies during the summer with the summer rubber.

sefeing, actually bought an E46 > Coffey_stain
02/05/2015 at 15:53

Haha deal!

crowmolly > sefeing, actually bought an E46
02/05/2015 at 16:00

One follow up question then:

Are they straight up paying for fuel or are they paying you per mile in an expense report?

My company pays for my fuel when I travel but it's based off of gasoline prices (not current ones, thankfully) so when I roll with diesel I can earn a decent chunk of change.

If you get 20mpg and go 1000 miles that's 50 gallons of gas. Your check will be $570 in reimbursement and you will spend $171.50 in fuel @ $3.43/gal (avg price for gas in 2014).

If you get 40mpg and go 1000 miles that's 25 gallons of diesel. Your check will still be $570 in reimbursement and you will spend $95.50 in diesel @ $3.82/gal (avg price for diesel in 2014).

Rough math but you would pocket the difference. You could earn extra $$ with an efficient car if it's more efficient than the one used to set the per mile rate.

sefeing, actually bought an E46 > crowmolly
02/05/2015 at 16:03

For me, It'll be a per-mile report. .55 a mile I believe? So yes, no matter what it'll likely be pocketing the difference, and a more fuel efficient car would net me more in the long run. Interesting fact about diesel though, I'll have to check what it is here in NY recently. I wouldn't rule out a TDI at all. I wish that there was something with AWD there though....

crowmolly > sefeing, actually bought an E46
02/05/2015 at 16:05

$0.57 is the US Gov standard I believe.

I used diesel as an example, if you have a hybrid or something... or even a smaller econobox it may add up quick. Wasn't sure if you had considered that or not.

Good luck with whatever you choose!

'Wägen, EPA LOL > sefeing, actually bought an E46
02/05/2015 at 16:09

Another bonus of the diesel is that sweet sweet torque. :)

I bought mine knowing that I was only doing so to keep miles off the super secret toy I'm trying to set a deal on, but I have been pleasantly surprised with it and I keep whittling away at my toy fund to add interesting bits like a tune, rear sway, big old skidplate, wheels, roofrack, etc. It's a great all-arounder that takes a beating camping and is super comfy on 8-12 hour drives (especially when you start check your average consumption mid road trip and see that it's almost 50mpg).

sefeing, actually bought an E46 > crowmolly
02/05/2015 at 16:12

Ah yeah didn't know the exact number. Hybrid.... Anyone wanna buy me a 918? :) I'm going to start looking into diesels though. From what I hear, reliability is fantastic too. and VW's don't need a urea system, right?

sefeing, actually bought an E46 > 'Wägen, EPA LOL
02/05/2015 at 16:13

Man that ain't bad. Is yours a manual? If I could find a JSW in manual.... or really anything TDI in manual..

sefeing, actually bought an E46 > 'Wägen, EPA LOL
02/05/2015 at 16:16

http://newyork.craigslist.org/fct/ctd/487570…

Wait. Since when can I actually afford these damn things. they cost a fortune brand new. I could do this easily. Just need to find one in manual. With only 62k on the clock. damn.

'Wägen, EPA LOL > sefeing, actually bought an E46
02/05/2015 at 16:16

Three pedals, my friend. They can be tougher to find, but are far from impossible. The local dealerships each had one when I looked. There was a '14 in silver or my '13 in white. I will caution against the push button start in a manual - it has both a brake interlock and clutch interlock so you have to go two feet in to restart if you stall rolling. Very stupid imo.

Edit to clarify - I do not have the push button start, I just test drove one with it.

sefeing, actually bought an E46 > 'Wägen, EPA LOL
02/05/2015 at 16:19

Pushbutton is certainly something I don't need. It's nice in the ST, but I usually take my keys out of my pocket anyway... Recaros. Everything I'm seeing on CL is auto :(

crowmolly > sefeing, actually bought an E46
02/05/2015 at 16:47

New VWs (and I think most, if not all diesels past a certain model year?) do.

It's $50 per fill but you only do it every 10-15k.

'Wägen, EPA LOL > sefeing, actually bought an E46
02/06/2015 at 09:41

http://www.volkswagenmanhattan.com/VehicleDetails…

sefeing, actually bought an E46 > 'Wägen, EPA LOL
02/06/2015 at 12:00

You're ruining my life right now.

'Wägen, EPA LOL > sefeing, actually bought an E46
02/06/2015 at 12:07

I'm helping and you know it, hahaha. If you buy a vw I have a vcds in rochester you can use. Finding things to change the coding on is my favorite part of owning anything VAG.

sefeing, actually bought an E46 > 'Wägen, EPA LOL
02/06/2015 at 12:22

hahaha touche. UGH okay time to craigslist for the rest of the day. :). Nice on having VCDS btw. I've heard that makes a world of difference in being able to mod the car.

'Wägen, EPA LOL > sefeing, actually bought an E46
02/06/2015 at 12:36

Absolutely necessary at least once. There are just tons of little things you can do with it. Windows on the key fob, sunroof on the key fob, low power recognition so leds don't throw a bulb out, some can do gauge celebration (the sweep on start up) and a ton of other little things that just are nice to change to exactly how you want.

sefeing, actually bought an E46 > 'Wägen, EPA LOL
02/06/2015 at 15:39

AH that's awesome. I was able to do the windows w/ key fob on my ST with a normal ELM adapter which was nice hah. But that was about the extent of it. Not that I get to use it during the winter............

'Wägen, EPA LOL > sefeing, actually bought an E46
02/06/2015 at 16:45

Just remember, it's not yours until you broke it somehow.