This Feels Sketchy. A Little Advice for a "Non Business Man"?
September 13, 2017 4:35 PM   Subscribe

Is this a good idea for getting out of a vehicle purchase that I can barely afford? Explanation inside:

While I was out of my mind (I was wrecked...ask if you need details.) I purchased a 2017 Ford Transit 150 Van. It was brand new in December and I owe $28K on it (that's blue book too so it's not really upside down). It now has 1500 miles. Hasn't even had a first oil change.

It looks like I have two options: I can sell this to a third party and try to wrangle with the title/loan originator (which I don't think is exactly legal)...OR...I can take a loan from my TSP/retirement fund, pay off the vehicle loan, have a clear title and THEN sell it.

This feels risky to me. Where are the flaws in my logic/reasoning? Is this doable?
posted by snsranch to Work & Money (7 answers total)
 
There's nothing illegal about selling a vehicle with an encumbered title, it's just a little more of a hassle for the buyer so it might limit your market a bit. When I bought a car that the seller was still making payments on I had them accompany me to my credit union, who called the seller's bank and arranged the payoff of the original loan on the spot. My credit union got the title, the seller got a receipt that their loan was settled, and later when I paid off my loan the title was mailed to me.
posted by contraption at 4:51 PM on September 13 [4 favorites]


I can take a loan from my TSP/retirement fund, pay off the vehicle loan, have a clear title and THEN sell it.

Sounds like a plan.

I can sell this to a third party and try to wrangle with the title/loan originator (which I don't think is exactly legal)

Also sounds like a plan. When you sell the vehicle, the lender gets paid off. The lender will tell you what they need.

What sounds not legal? And what's a "title/loan" and who is the "title/loan originator" and why do you have to "wrangle" with them?
posted by JimN2TAW at 4:54 PM on September 13 [1 favorite]


And what's a "title/loan" and who is the "title/loan originator" and why do you have to "wrangle" with them?

The lender told me that I could only sell/transfer the vehicle if the purchaser qualified for a loan...I get it now. While I said specifically that the loan would be paid in full, that didn't register with them. I wasn't talking about anyone assuming the loan.
posted by snsranch at 5:15 PM on September 13


I once had to sell a car that I owed some money on. I was in a rush and didn't want to deal with title transfer and loan payoff with a private buyer, so I sold it to a professional car buyer. I found them by googling "sell car [MY CITY]" and then checking reviews for the results I got.

The whole thing was easy. They made me an offer that seemed reasonable based on my research and gave me a check for the difference between their offer and what I owed on the car. I might have gotten a few hundred dollars more from Craigslist but this was so easy.
posted by lunasol at 6:37 PM on September 13 [1 favorite]


What this the car worth? Are you underwater on the loan? (meaning you owe $28,000 but Kelly Blue Book or its equivalent says it's only worth $25,000) Will you still wind up owing money once you sell it?

Can you repay the TSP loan? Is the repayment timeframe reasonable? (ie, if you take the loan and pay off your car will you have time to sell it and pay the money back into your retirement fund before the window closes?) What is the likelihood that you will actually follow through on repaying the loan? Don't trade your retirement for a car. People sell cars with loans against them all the time; go that route if you can.
posted by peanut_mcgillicuty at 4:39 AM on September 14


Do not cash out your Thrift Savings Plan. That is the best deal you can get, do not cash it out to get out from under this bad car loan.

Because you mentioned the TSP - are you military? If so, there's some other options.
posted by corb at 7:28 AM on September 14


I owe just a couple thousand less that its blue book value. I should at least break even and that's all I'm trying for.

If I use the TSP loan, I'll pay it back immediately when the van is sold...but it's looking like I'll skip the TSP loan. Army vet, currently DOD civilian.

Thanks again folks. This is looking much better!
posted by snsranch at 10:55 AM on September 14


« Older Noun or Adjective?   |   5000 Most Frequently Used Domain Name Prefixes and... Newer »

You are not logged in, either login or create an account to post comments