Bank Car Loan Question
Bank gives 90% of blue book value usually PLUS your taxes. If you car payoff is 5k and its worth 8k, it has nothing to do with the transaction.
NOW. if your selling your car for $6k, its worth $5k, buyer will come out of pocket $1k to meet the banks requirements for LOAN to VALUE ratio. I have a car dealership, i do this daily.
NOW. if your selling your car for $6k, its worth $5k, buyer will come out of pocket $1k to meet the banks requirements for LOAN to VALUE ratio. I have a car dealership, i do this daily.
thanks Mike, wasnt sure if it would have been best in here or the clubhouse.
Bank gives 90% of blue book value usually PLUS your taxes. If you car payoff is 5k and its worth 8k, it has nothing to do with the transaction.
NOW. if your selling your car for $6k, its worth $5k, buyer will come out of pocket $1k to meet the banks requirements for LOAN to VALUE ratio. I have a car dealership, i do this daily.
NOW. if your selling your car for $6k, its worth $5k, buyer will come out of pocket $1k to meet the banks requirements for LOAN to VALUE ratio. I have a car dealership, i do this daily.
yea the more im thinking about it, it could be a credit issue on his end but they already approved him for the full amount before the bank even seen my payoff amount.
the difference is minor. hes short $2500 based off what the bank will give him plus what he has cash wise. im not interested in taking a $2500 loss unless i sell the car stock which he is not interested in.
the difference is minor. hes short $2500 based off what the bank will give him plus what he has cash wise. im not interested in taking a $2500 loss unless i sell the car stock which he is not interested in.
Yeah I'm confused, something isn't adding up and I would just move on to an easier transaction with a different buyer. Find a Giants fan to sell to, our credit history is better.
it would end up being a Dolphins fan 
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Joined: Jul 2011
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From: NH
Buyer is either confused or doesn't understand how car loans work.
I don't know what state you're in, but generally in a private party sale, the following happens:
1. buyer checks out car, likes it, buyer and seller agree on a price.
2. buyer provides bank with VIN information, bank checks credit and VIN, gives approval amount.
3. Buyer comes up with difference between approval amount and purchase price, if any.
4. Bank contacts current leinholder for payoff information, sends check to payoff and release title, any remaining loan amount is paid directly to seller.
5. When title is released, buyer and seller complete transaction and buyer takes paperwork to DMV to file title application, get plates, register. The bank doesn't typically loan against sales taxes etc in this situation.
Things are a little different when buying from a dealership because the dealership fronts you money for registration, inspection etc and you can roll that into the loan amount since the dealer has title ready to go. In a private sale, the banks deal directly with each other, the title has to get released, etc and the process takes a couple weeks.
I don't know what state you're in, but generally in a private party sale, the following happens:
1. buyer checks out car, likes it, buyer and seller agree on a price.
2. buyer provides bank with VIN information, bank checks credit and VIN, gives approval amount.
3. Buyer comes up with difference between approval amount and purchase price, if any.
4. Bank contacts current leinholder for payoff information, sends check to payoff and release title, any remaining loan amount is paid directly to seller.
5. When title is released, buyer and seller complete transaction and buyer takes paperwork to DMV to file title application, get plates, register. The bank doesn't typically loan against sales taxes etc in this situation.
Things are a little different when buying from a dealership because the dealership fronts you money for registration, inspection etc and you can roll that into the loan amount since the dealer has title ready to go. In a private sale, the banks deal directly with each other, the title has to get released, etc and the process takes a couple weeks.
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