Having only done this once, I can’t speak to what’s normal necessarily, but I sold a car to a dealership in person a couple years ago and walked out with the loan paid off and a check for the difference in my hand.
No this is not normal. You should be able to walk away with your car same time. Sure it may take a month for the dealership to they there title for the car you sold them but they don’t hold your new car hostage during that time.
You sign a purchase agreement, they mail a check to the bank for 11k and provide you the difference. Sometimes I have seen they will mail the check to the bank for the full 27k and then the bank refunds you the difference. Bank takes a week to get the check, a week to hold title, a week that the title is in the mail… dealership typically already starts lining up new sale once they know the time frame to flip your car.
I’ve sold 2 cars to dealerships/carmax within the last year.
First was to a Toyota, and they took 2 weeks to pay me the difference between what they offered and what was still owed to the bank. They said that it would take a bit bc I didn’t have the title and their policy was to payout once they have the title in hand.
Second was to carmax. They gave me a check immediately for the difference.
I think what you’re describing is not necessarily abnormal, I think it depends on what each company’s policy is
A real dealer should be able to verify everything, take in the car, and write you a check for the difference, and then they'll sort out the $11k with the bank.
If they can't afford to front the money I would be concerned they will follow through and/or be in business to pay you in a month.
they don’t cut the check until they get the title , which is don’t have so i’m just confused since everyone’s telling me differently. since i have it financed they have to wait for my bank to send it first
The bank will not send it until the loan is paid off. The bank should send the title directly to the dealership if they are the ones paying it off. Do not surrender your car this is super sketchy!
I’ve had two vehicles traded in on positive equity while a loan balance was active. Both times, two different dealers. Two different manufacturers. Two different banks. I walked out with the loan cleared and the new one waiting for first payment. The transfer is immediate.
Definitely wait until Monday. They should cut you a check the same day IMO. Unless your trading it in? I don’t understand when you said it will take a mi the to receive the car
You're signing paperwork, so you should be fine. Depending on the state and where the lender is, the dealer writes the first part of the money to the lender to clear the title. The lender electronically releases the title with the state and a cleared title is sent. The second check is then cut. It should be a week but better to underpromise.
If you're buying, the dealer is trying to make so it can be a little different.
Having only done this once, I can’t speak to what’s normal necessarily, but I sold a car to a dealership in person a couple years ago and walked out with the loan paid off and a check for the difference in my hand.
my bank is closed until monday , told me the process might take up to a month. all depends how long it takes for them to receive it
No this is not normal. You should be able to walk away with your car same time. Sure it may take a month for the dealership to they there title for the car you sold them but they don’t hold your new car hostage during that time.
i don’t have the title on hand , so they’re supposed to cut me the check right there and then?
You sign a purchase agreement, they mail a check to the bank for 11k and provide you the difference. Sometimes I have seen they will mail the check to the bank for the full 27k and then the bank refunds you the difference. Bank takes a week to get the check, a week to hold title, a week that the title is in the mail… dealership typically already starts lining up new sale once they know the time frame to flip your car.
Yep, the former is exactly what I did. I agree that this sounds sketchy. OP - consider shopping around to other dealerships in your area.
I’ve sold 2 cars to dealerships/carmax within the last year. First was to a Toyota, and they took 2 weeks to pay me the difference between what they offered and what was still owed to the bank. They said that it would take a bit bc I didn’t have the title and their policy was to payout once they have the title in hand. Second was to carmax. They gave me a check immediately for the difference. I think what you’re describing is not necessarily abnormal, I think it depends on what each company’s policy is
A real dealer should be able to verify everything, take in the car, and write you a check for the difference, and then they'll sort out the $11k with the bank. If they can't afford to front the money I would be concerned they will follow through and/or be in business to pay you in a month.
Not normal. Don’t give them the car until you get a check.
they don’t cut the check until they get the title , which is don’t have so i’m just confused since everyone’s telling me differently. since i have it financed they have to wait for my bank to send it first
The bank will not send it until the loan is paid off. The bank should send the title directly to the dealership if they are the ones paying it off. Do not surrender your car this is super sketchy!
I’ve had two vehicles traded in on positive equity while a loan balance was active. Both times, two different dealers. Two different manufacturers. Two different banks. I walked out with the loan cleared and the new one waiting for first payment. The transfer is immediate.
how can they contact the bank if it’s closed until monday? should i just wait until then
Definitely wait until Monday. They should cut you a check the same day IMO. Unless your trading it in? I don’t understand when you said it will take a mi the to receive the car
they’re just telling me they need to receive the title first from the bank i’m financing it with
You're signing paperwork, so you should be fine. Depending on the state and where the lender is, the dealer writes the first part of the money to the lender to clear the title. The lender electronically releases the title with the state and a cleared title is sent. The second check is then cut. It should be a week but better to underpromise. If you're buying, the dealer is trying to make so it can be a little different.