Hi.. Im thinking of selling my xb but I still owe money with TFS. Is possible to transfer the payments to the buyer?

Thanks!

 

should be but it would depend where the loan came from

 

Normally the buyer would get financing for the amount you are selling it for and then pay you and you pay TFS the payoff on your loan. In fact most times transfer of payments means that the buyer gets a loan with TFS and TFS pays off your loan with the proceeds of the buyers loan., so it really isn't a transfer of payments it is really a new loan the same as if he/she had financed elsewhere. In any case you are selling your car so you need the loan paid off so that you no longer have any financial or other responsibility concerning the car you are selling. I would not recommend selling a car in any other circumstance that would leave you liable for anything to do with the old car after the new owner has taken possession. Too many things can happen that would leave you screwed, not to mention that your credit will be effected just by the fact that you would still have some responsibility on the unpaid amount (even if the payments were made perfectly having the extrra credit obligation with your name attached is not necessarily a good thing).

OH yeah and do not forget to cancel your insurance on the car you are selling immediately upon the new owner taking possession.

 

so far.. my best options

1. payoff the car with a loan from Capital One, so I can have the title with me. Then is easy to sell th car that way, less problems.

2. make the buyer payoff the car, BUT, I need to know more about this.. the paperwork, etc etc etc. I like this idea because I dont want to handle the money, I preffer that the buyer do the check to TFS and thats it.


How about taxes? Do I need to pay something? Or in which case I need to pay something? Im thinking with option 2 i dont need to pay any taxes, right? but in option one I think I will need to pay something because the money will go throught me, .. im wrong?

Thanks for the help!!

 

I'd contact TFS, see what they have to say about it. You'll avoid any additional expense to yourself, unlike borrowing to pay it off...

You'll need the exact loan payoff amount, in either case... which TFS will furnish...

 

The safest way to do this kind of transaction is for you to accept only certified funds from the buyer ( a verified deposit in the form of a bank check (you really need to be sure the funds are good and in your account) , or a verified funds transfer to your account from him or his bank (lender) before you deliver the car. Then you pay TFS from your accounts using these funds. This way you have the assurance that the funds are good and that your obligation is satisfied before you give up control of the car.
You may also be able to arrange that his or her lender or bank transfer funds directly to TFS as well. This arrangement may indeed be a very good way to do this, but you must be sure that TFS has verfied the funds and paid your account before you deliver the car. In other words you do not deliver the car until TFS tells you that it is paid off.

In most cases if any taxes are due on a transaction like this, they are due from the buyer not the seller tho you need to check your state laws (here there are no sales taxes on such a transaction).

To finance such a transaction on a credit card for even a short period is likely not a good idea. You take the cash from the Credit Card and then if the car doesn't sell right away you end up paying more interest on the money than if TFS still held the note (assuming your credit card interest rate is higher than your auto loan). What will the minimum payment be with that amount on the Credit Card? How does that compare to your car payment? Can you afford to pay that amount monthly for a while, if something happens that makes you keep the car for a longer time than you anticipate (things can happen)? How fast will the state produce you a clear title once TFS is paid? It might take weeks (here in GA it would take 6-8 weeks and thats after the lender sends the paperwork in) before you actually have that clean title in your hand??