[Mjosh]

Hello Everyone,

I apologize if I posted this in the wrong section however was wondering if anyone can assist with a car sell that is financed with BMW Financial or familiar with the process.

I'm selling my car to a family friend however it's currently financed with BMW financial. Currently we agreed on a sales price and only thing now is the buyer is contemplating to either get an auto loan or pay with cash.

I've never sold a car private party and not sure how it would work if I currently still owe on the vehicle? The agreed sales price is more than what I owe to BMW so I'm uncertain of how this deal would work.

Anyone with experience with a similar situation please chime in and help.

Thank you very much in advance!!

Regards,

Josh

[shark715]

Not sure if it would be any different in California, but here in New Jersey you would be unable to give your buyer a lien free title until the loan is paid off.

At least in our state you would contact your lender, ask for the payoff figure, and once they receive the funds they will send you title, noting on it that the lien is canceled, and with that document (signed by you) your buyer can get the car titled in his/her name.

If your buyer does pay in cash, since you know him/her the answer simply is that your buyer will not receive the title until a few weeks after he/she pays you.

If your buyer chooses to take out a loan, then I'm not sure. He/she might want to ask their lender if they would just pay BMW Financial directly if you can show the lender a payoff statement.

[HalfMoon]

Originally Posted by shark715

Not sure if it would be any different in California, but here in New Jersey you would be unable to give your buyer a lien free title until the loan is paid off.

At least in our state you would contact your lender, ask for the payoff figure, and once they receive the funds they will send you title, noting on it that the lien is canceled, and with that document (signed by you) your buyer can get the car titled in his/her name.

If your buyer does pay in cash, since you know him/her the answer simply is that your buyer will not receive the title until a few weeks after he/she pays you.

If your buyer chooses to take out a loan, then I'm not sure. He/she might want to ask their lender if they would just pay BMW Financial directly if you can show the lender a payoff statement.

This has been my experience in California.

For the bolded part: I've done this about 10 years ago and the process was pretty simple. The buyer got approved for a loan and I gave his bank my account number for the current loan. The banks talked to each other and have a process for this that makes it pretty simple. I signed a couple forms releasing the car and the buyer's bank paid off the car and transferred the title to the new bank/buyer.

In this case the bank paid my account off with an overage since I owed less than what I sold it for, and when my bank sent me the confirmation letter that the account was paid and closed they included a check for the difference.

It's much easier to sell a car with a lien attached to someone you know, or to someone taking out a loan. Not too many strangers will just trust you enough to pay off your car and hope that you will sign over the title whenever California gets off it's butt and sends it to you.

[BEM-S4]

Just talk to your dealer they'll help you do it all and even CPO it for your friend if they want for a fee.

[Mjosh]

Thanks for the info and sharing your experiences everyone!!

I'm not sure if the process would vary by states but looks like I may have to contact the DMV to validate. Great info though didn't think about overpaying BMW Financial and having them send the difference in the mail!

Also didn't know the dealer can facilitate the transaction and have the car be cpo.

Also would you guys know how the sales tax, registration and licensing fees would work? Would I just add that on top of the agreed sales price?

Thanks again much appreciated!!

[Cyberdemon]

Originally Posted by Mjosh

Thanks for the info and sharing your experiences everyone!!

I'm not sure if the process would vary by states but looks like I may have to contact the DMV to validate. Great info though didn't think about overpaying BMW Financial and having them send the difference in the mail!

Also didn't know the dealer can facilitate the transaction and have the car be cpo.

Also would you guys know how the sales tax, registration and licensing fees would work? Would I just add that on top of the agreed sales price?

Thanks again much appreciated!!

Selling a car with a lien has some restrictions but your first step is to get the payoff amount.

Second step is to understand how the buyer is going to pay. If they are getting a loan, they need to go to their bank and get approved for the amount they agreed to pay. Depending on the balance of cash:loan the bank will give them instructions on how to handle the transfer. Usually you'll need to go to the bank with them and sign something like a bill of sale in the bank to guarantee the transfer without the title (which you won't have, since BMW has it).

Once that is signed, the buyers bank will provide them a check to pay - they may cut one check for BMW and one for the balance to you.

The buyer pays all taxes and registration fees to the DMV.

I would not get a BMW dealer involved - dealers are not in the interest of doing things for free. No matter what, you are going to be forking over some amount of cash for their services even if it is only documentation.

[BEM-S4]

^ this is all accurate and true. And as long as the car is still under warranty, your friend should be able to extend that and maintenance should he choose to do so anytime before it lapses with no help from you. Most dealers I use are friends, so they've taken care of all this crap for me in the past as a favor. Also keep buying cars obvs so they'll get more money from me eventually. If you have a similar relationship that's just the lowest effort option.

[DanG]

I assume that you have a 2015 BMW. You need to let your friend know that the free maintenance is not transferable.

[Mjosh]

Originally Posted by Cyberdemon

Selling a car with a lien has some restrictions but your first step is to get the payoff amount.

Second step is to understand how the buyer is going to pay. If they are getting a loan, they need to go to their bank and get approved for the amount they agreed to pay. Depending on the balance of cash:loan the bank will give them instructions on how to handle the transfer. Usually you'll need to go to the bank with them and sign something like a bill of sale in the bank to guarantee the transfer without the title (which you won't have, since BMW has it).

Once that is signed, the buyers bank will provide them a check to pay - they may cut one check for BMW and one for the balance to you.

The buyer pays all taxes and registration fees to the DMV.

I would not get a BMW dealer involved - dealers are not in the interest of doing things for free. No matter what, you are going to be forking over some amount of cash for their services even if it is only documentation.

Thanks for the detailed info!! Your right I'm not going to get the dealer involved because I don't have friends that work there... Appreciate the help!

[Mjosh]

Originally Posted by BEM-S4

^ this is all accurate and true. And as long as the car is still under warranty, your friend should be able to extend that and maintenance should he choose to do so anytime before it lapses with no help from you. Most dealers I use are friends, so they've taken care of all this crap for me in the past as a favor. Also keep buying cars obvs so they'll get more money from me eventually. If you have a similar relationship that's just the lowest effort option.

Thanks for the info!! Wish I had friends that worked at a dealer...

[Mjosh]

Originally Posted by DanG

I assume that you have a 2015 BMW. You need to let your friend know that the free maintenance is not transferable.

You are correct it's a 2015 M235. I didn't know the maintenance was not transferable. Does that mean the new owner would have to pay for scheduled maintenance?

Thanks for the heads up!

[DanG]

Originally Posted by Mjosh

You are correct it's a 2015 M235. I didn't know the maintenance was not transferable. Does that mean the new owner would have to pay for scheduled maintenance?

Thanks for the heads up!

Yes that means that the new owner must pay for all maintenance. Only the 2014 2 series has maintenance that transfer.

The warranty does transfer though.

[Rollo`]

I did this a couple of years ago and BMW financial made it really easy. They provided documentation I used to complete the transaction with the buyer. Go on the bmw financial web site and look it up. I was amazed at how helpful they were and how easy the process was.

[Mjosh]

Really appreciate all the help and guidance everyone!! Looks like it's going to be a cash deal so should be a little smoother.

Will definitely miss this vehicle but at least going to a good friend.

Thanks again!!

Regards,

Josh

[merlin3008]

Originally Posted by Rollo`

I did this a couple of years ago and BMW financial made it really easy. They provided documentation I used to complete the transaction with the buyer. Go on the bmw financial web site and look it up. I was amazed at how helpful they were and how easy the process was.

I can vouch for this statement. I did a lease transfer with BMW Finance and I can not overstate how helpful they were throughout the entire process. Everyone who I spoke to was consistently competent and no detail fell through the cracks. Probably the best banking experience I've had and without a doubt the best auto finance.