Sold my car, now have title question

[tecknojoe]

I agreed to sell my car to a private buyer. Now I send the money for the payoff to the company. The company will send me a title with a lein hold on it, and a lean release form.

Here's the tricky part. When I take the title and lein release to DMV, I need to give both forms and get a "free and clear" title. at that point, they issue me a new title with my name on it, which I THEN sign over to the buyer.

a) Does this mean I officially buy the car first? If so, do I get hit with tax for the full amount of the car the same as if I was just buying it myself??

b) What does DMV usually charge to do the paperwork that I just described? Like $40 or a few hundred?

[wulf]

I agreed to sell my car to a private buyer. Now I send the money for the payoff to the company. The company will send me a title with a lein hold on it, and a lean release form.

Here's the tricky part. When I take the title and lein release to DMV, I need to give both forms and get a "free and clear" title. at that point, they issue me a new title with my name on it, which I THEN sign over to the buyer.

a) Does this mean I officially buy the car first? If so, do I get hit with tax for the full amount of the car the same as if I was just buying it myself??

b) What does DMV usually charge to do the paperwork that I just described? Like $40 or a few hundred?

$7.20

[Ghost]

Yes, even if it's only a matter of minutes, you effectively own your car once the lien is paid off, you cannot sell a car with a lien still on it.

Once it's free & clear then you take the title to the car you now own and turn it over to the new buyer.

You shouldn't get hit with any tax as long as you paid sales tax when you purchased the vehicle initially (and since you have a lien/loan I assume you bought it somewhere that collected tax as part of the sale).

IF you bought it privately and took a loan out for just a set amount, and you NOT pay taxes when you purchased it, as you should have, then you will be forced to pay what you owe.

[PhL0aTeR]

you should have already paid your TT&L when u bought the car if it was registered. You should be able to just pay the money, get the original title, which was in your name, but showing a leinholder, get some paperwork showing its paid and they sign the leinholder area, then u just sign it and give it to your buyer. the buyer is then responsible for paying his taxes and title fee to get HIS title. unless your leinholder lost the title (its happened to me) then they just give you the title that got mailed to THEM when you bought the car and paid your TT&L.

Again, as long as you paid your taxes and title fees when u bought the car, which is typical, the title is in your name, it just shows a lein which your bank should just have to sign and give you the title, then you sign it and give to your buyer.

Hope this helps

Dont quote me on any of that, its just my opinion and my past experiences, here and in TX, it may have changed here since my last bout, although i just had to go down and pay TT&L on a bike i bought two years ago, that was cuz i had what the dealer gave me (MSO or whatever that is) and i needed to go get the title to sell the bike.

[longrider]

You do not have to get a new title or go to Motor Vehicle for any reason. The bank has your title with a lien on it, they sign the spot that releases the lien which makes it a clear title, you then sign the transfer spot and give it to the buyer.