A cars title is the proof of its ownership, it ties the name of the seller, to the vehicle in question. Anyone accepting it as a trade in or buying it from you needs to be sure that they're dealing with the owner. No you do not need your title to trade in the car. For example, if you purchase a car for $25,000 and the dealership gives you $6,000 for your trade-in, you only need a loan for $19,000. The dealer contacts the lender and takes care of the transfer for you. Transferring Your Title During a Car Sale: How it Works. If the lender doesn’t allow you to roll over the negative equity, but you’re determined to trade in your vehicle, your next best bet is to pay the difference in cash yourself. Trading in a Car That Has a Lien on the Title, the trade in process and the documents that are needed. Once you fill out the paperwork, you either get the title immediately, or may need to wait a few weeks before it’s mailed – again, this depends on your state’s DMV and their procedures. A cosigner may have obligations to the loan on the car, but they don’t have any ownership rights, which means they have no say in whether or not you keep, trade … To trade in or sell a vehicle, you, the primary borrower, must be present at a sale and sign the title. This acts like What Paperwork Do I Need to Trade In My Car. The most important thing you'll need when you trade in your car is your car's title. Tip #6: Sign in the Right Place. © 2021 MH Sub I, LLC dba Auto Credit Express, Auto Credit Express and the ACE logo are registered trademarks. If you sell privately, you will get the retail price. In fact, it’s common for dealers to take care of consumers’ old financing. You can’t trade in a vehicle without a cleared title. All you need to do is head to your local DMV or Secretary of State and complete the appropriate paperwork. If you go to sell a car without a title in your name, then you basically don’t have the required authority to do so. If you co-owned the vehicle, the title automatically transfers to you. This can take some time to complete, but once the executor completes the process with the court, the vehicle is yours to trade in. To transfer a car title to the new owner, you’ll need the physical title document. Once the lien has been satisfied and the dealership cuts you a check for any balance left over, you can go forward with the trade in process. It can test your negotiating skills and your patience. There are a few things you can do in advance to make sure you get a good deal, though. Can I Transfer Auto Insurance to Another Vehicle? That means that for the next 3 years, you will only have paid $55 in depreciation every month. We'll work to match you with a dealership near you after you fill out our online auto loan request form. If you have a trade-in you want to use as a down payment on your next car, there are several pieces of paperwork you can bring with you. When you take out a car loan, a lien is created. You don't own the car legally and the title is not in your name. When you trade in your car to a dealership, its value is subtracted from the price of the new car. If your car is newer than 15 years old, this won’t work. Dealers are very familiar with the trade in process and the documents that are needed to do this. The contents of all material available on this web site are copyrighted unless otherwise indicated. Can I Trade In a Car That's Not in My Name? Instead, sign the title with the signature that matches your name as it was printed on the title. There’s paperwork you need, such as the title, and paperwork that's optional, such as your vehicle's estimated resale value. Either transfer the title into your name and pay any taxes that involves, or your dad will need to be present to trade the car. If you go to your local dealership to sell your car or trade it in for a newer model, ... you have gotten married or changed your name for another reason since the original title was issued or signed over to you, do NOT sign the title using your new signature. If you add it to your new car loan, know that your payment and interest can increase. Some lenders allow you to roll over negative equity into your new loan, but this isn’t typically recommended. When it comes to the paperwork you’re required to bring with you, you should have the following two things: Title – You can’t trade in a car without a title. You'll have to bring in your title to trade in your car. (Current value)$15,000 – (Value in 2 years)$13,000 = $2,000. How Much Does a Voluntary Repossession Affect Your Credit? One of the best parts about selling your car to a dealer is that you do not have to worry about trying to locate a buyer. Content may not be reproduced, downloaded, disseminated, or transferred, in any form or by any means, except with the prior written agreement of Auto Credit Express. Otherwise, you might not be able to sell your car privately. But if you still owe money on your car loan and can’t pay it off now, you might want to wait to sell or trade in your car. Nearly anyone can buy a car with bad credit. If an institution such as a bank has a lien on the title, you won’t need to worry about getting the title if you plan on selling it to a dealership. If you still owe money on your vehicle or have lost the title, you still can take steps to trade it in at a dealer. In fact, it’s illegal to sell or trade in a vehicle without a title in most states. If your title still has a lien (loan) on it, then you will need to know what the "buy out" is. If the vehicle in question's already paid off, meaning no loans held on it. What Should I Do with My Car before Getting an Appraisal? Another optional bit of paperwork you can bring in when trading in your vehicle is service records. Some states have different laws, and antique or abandoned vehicles are often treated differently. How to Transfer Your Car Loan to Someone Else, Principal and Interest: Understanding Your Car Loan. Do You Have to Sign a Title to Gain Ownership of a Car? You pay the fee and the dealer will get the title. If you do decide to trade in your car, it helps to understand the different terms you’ll hear: Retail price: This is the price of the car when someone buys it from a dealer. This is called having negative equity, or being upside down, in your auto loan. When you trade in a car with a loan, the dealer takes over the loan and pays it off. Find out if you can complete a tag transfer or registration transfer if you've sold your vehicle. We're teamed up with a nationwide network of dealerships that understand and know how to work with challenging credit situations. Once the title has been signed over, you take the title and copy of the divorce decree to the DMV to officially make the change. If your car is worth less than what you owe, don’t despair, you could still trade in your car, but you’ll need to cover the difference with a down payment or roll the difference into your new car loan. A dealership requires that you provide a signed title at the time you trade in your car. Click your state to find the cost to transfer titles with your Department of Motor Vehicles or vehicle licensing agency. If you've taken good care of your car, this can give you some more leverage when it comes to negotiating. At Auto Credit Express, we want to help you find a local dealer with the lending resources you need. Clear meaning no banks own a portion of the car because you still owe them money. Some dealers might pay off your old loan if you trade in your car. Nearly anyone can buy a car with bad credit. Since you can't trade in a car that doesn't belong to you, the title serves as your proof of ownership and gives you the authority to sign over the vehicle. And because the dealer knocked several thousand dollars off the final price of your automobile, you pay less in sales tax. Consequences of Hiding Your Car From the Repo Man, Tax Refunds and Stimulus Checks Could Help You With Auto Financing. In order to trade in your car, you must have the title ready and available for the dealership. If you have a trade-in and you’re looking to finance another vehicle, but worry your bad credit may hold you back, have no fear. Most states require a title for the legal sale of a vehicle, but don’t give up hope: There are times when you can sell a car without it. With a divorce, it’s important you have your attorney transfer the title to you during the divorce proceedings. Protect your vehicle and you could save thousands on auto repairs. What Is the Minimum Length of Employment for Auto Loan Approval? Research the value of your trade-in vehicle. But while you’re focused on all the big items that selling a car requires, it’s easy to forget the details. Trade-in price: This is the price that the dealer will pay you for the car.