Sale of vehicle question

[vandeman17]

I have been in the market for a new truck for a while now and have been patiently waiting for the right one to come around. I have considered both selling my Tahoe or trading it in. While trading it in is easier, I have been getting offers for basically what I owe.  I can probably sell it privately and make a little money to put down towards the truck. My question is how you go about selling a vehicle that you still owe money on.. I have only ever traded in my vehicles so I am not sure how the process would go.

[jackelope]

The buyer would have to be willing to wait a week or 2 for you to get the title after you pay it off. If I remember correctly, there is a temporary one or something similar they will send you.
Is your Tahoe financed through GMAC by chance?

[vandeman17]

The buyer would have to be willing to wait a week or 2 for you to get the title after you pay it off. If I remember correctly, there is a temporary one or something similar they will send you.
Is your Tahoe financed through GMAC by chance?

Nope, it is through BECU which is what adds to the problem. The closest BECU place for me is Tukwila so at least a three hour drive.

[Southpole]

When I bought my jeep (that I'm now trying to sell on here ironically) a few years ago. The guy owed BECU a balance. We all met at the North Everett branch. I gave the credit union the balance owed to them and the rest to the jeep seller. The credit union had us fill out some paper work to release all interest from the seller to me. They didn't have the title on hand, but the paper work we filled out (so I could take it to the licensing place) took care of that. Long story short, the easiest thing to do it meet up at the credit union and they'll take care of everything.

[buglebuster]

You have to remember also that if you sell it, you will be paying tax on the whole price of the new vehicle, if you trade it in you only pay tax on the balance left of the new vehicle after the trade. So if you sell your tahoe for $1000 more than what the dealer offers you, it may not be worth it.

[vandeman17]

You have to remember also that if you sell it, you will be paying tax on the whole price of the new vehicle, if you trade it in you only pay tax on the balance left of the new vehicle after the trade. So if you sell your tahoe for $1000 more than what the dealer offers you, it may not be worth it.

I thought the buyer would be paying the sales tax... So if I sold it for $25k and I own $21k then I can use 21k to pay it off and then have $4k extra? 

[jackelope]

You get a tax credit at the dealer when you trade a vehicle in.
You've got to weigh the difference.

[Bean Counter]

You have to remember also that if you sell it, you will be paying tax on the whole price of the new vehicle, if you trade it in you only pay tax on the balance left of the new vehicle after the trade. So if you sell your tahoe for $1000 more than what the dealer offers you, it may not be worth it.

I thought the buyer would be paying the sales tax... So if I sold it for $25k and I own $21k then I can use 21k to pay it off and then have $4k extra? 

Yes, the buyer pays tax on $25,000 purchase of your retired vehicle.  But if you turn around and buy a $30,000 vehicle, you pay tax on that $30,000 amount. If you were to trade it in, you'd only pay tax on $5,000 ($30,000 - $25,000).

[vandeman17]

Ahh, I see now. I guess I will just have to weigh that when I am trying to decide if I will accept an offer. So many things to consider.