If you want to a sell car without a pink slip, there are a few things you will need to do in order to make sure the sale is legal and proceeds as smoothly as possible. When your bank holds the car title, or pink slip, of your vehicle, you are not the legal owner and may not transfer the legal title of the vehicle. If you are still making car payments, you probably have the car registration (not pink slip) in your possession. While a car registration allows you to legally drive and insure a vehicle, you are not the actual owner of the vehicle. So, here is a handy guide on how to sell your car when the bank still actually owns it.
What You Will Need
- A vehicle to sell
- A buyer with cash or approved financing
- Phone number to bank that holds the title
Step 1 - Negotiate a Deal with the Buyer
First of all, you need to negotiate a selling price with your buyer. You would do this much in the same way as you would when selling a car that you have title to or anything else for that matter. Try to get as much as you can for your car. However, make sure that the sales amount is enough to cover the balance of your car loan with the bank - or you will have to pay the difference out of your own pocket.
Step 2 - Contact Your Bank
After you have decided on a sales price with your buyer, contact your bank and request the payoff amount for your vehicle loan. In most cases, the bank will give you what is called a '10 day payoff amount'. This is the amount needed to satisfy your loan obligation and is valid for up to 10 days following the payoff quote date. Simply put, if your payment reaches the bank within 10 days, you will not be required to pay additional interest charges. However, if your final payment does not reach the bank within the specified time period, you may have to pay additional interest charges before the bank will release the car title.
Step 3 - Close the Deal
After you know exactly how much you have to pay your bank, receive cash from your buyer, or a check from your buyer's bank, for the sales price of the vehicle. Make sure to complete any paperwork required by the buyer's bank, or create a simple bill of sale for the vehicle transfer.
Step 4 - Pay Balance of Loan to Bank
As soon as you have the funds to do so, send your bank the amount that was quoted to you as being the final payoff amount. It is probably better to send your bank a cashier's check or money order as this will usually help the bank facilitate the transfer of your vehicle's title.
Step 5 - Tell the Bank Where to Send the Title
When sending in the final payment to your bank, also include a short letter or note directing them as to where to send the car title. If the buyer paid you cash, your bank will probably send the vehicle title directly to him/her. However, if the buyer used a car loan to purchase your car, your bank will simply mail the title to your buyer's bank.