So I am selling my fairly new car on Craigslist and/or Autotrader. I'm trying to pull some equity out of it. I still owe some on my loan, but I am confident I can get a good price for it based on comparative vehicles that I have seen for sale. I owe 12k and comps show sales in the 27k range.

If you sell a car to somebody and you owe money, does the transaction have to be done by the bank/lien holder? Does the buying party just pay me and then I pay off the loan and then transfer the title at a later time to the buyer?

Also does anybody know any scams to watch out for on Craigslist when SELLING a vehicle? I know there are a lot when you are buying a vehicle like do not send money and agree to pick up later.

For sale does not equal sold.

Google 'common Craigslist scams'

Offers to ship, overpay, broker your car, all scams or a waste of $.

Your bank will want certified funds (cash, wire, or verified cashiers check to release title) you will get the difference. Try to deal with a local buyer who has a local bank.

It's a pain now a days - good luck.

I have sold two cars recently that we owed money on. Each time we sold the car for more than what we owed. Our lein holder was USAA. We received cash payment, immediately paid off the loan, and then received the title 10 days later. I then transferred the title over to the new buyer.

Some chose to do it that way if they are trusting...other buyers prefer to have there bank wire the money directly from their bank to your bank. I have even heard of buyers having their bank pay the sellers bank the payoff only. The buyer then took the vehicle and paid the remaining full amount once the title was received. In any case, it comes down to trusting each other. However, a bank to bank payment in full is the best way to do it. He bank takes their cut and the seller gets the rest in their account. Of course you still have to get the title transferred to the buyer but talk to your bank on that one as they may have a couple of options for you.

[This message has been edited by FC12 (edited 2/10/2013 7:54p).]

What are you selling?