When To Give Vehicle Title To Buyer?

[Dharma65]

Hi! I would like to have some info on procedures how to sell vehicle to a private buyer. When can i give my vehicle title to the buyer? Logically, it's only after the full amount is paid, correct? The buyer is buying the vehicle through financing. The finance company asked me to give the vehicle title before the full payment is being made, and they will give some sort of "money invoice" for the financed amount. They said it's their procedures?

Is it true? Other than the title, what other document should i give to the buyer after received the full payment?

Thank you.

[The Don]

Hi! I would like to have some info on procedures how to sell vehicle to a private buyer. When can i give my vehicle title to the buyer? Logically, it's only after the full amount is paid, correct? The buyer is buying the vehicle through financing. The finance company asked me to give the vehicle title before the full payment is being made, and they will give some sort of "money invoice" for the financed amount. They said it's their procedures?

Is it true? Other than the title, what other document should i give to the buyer after received the full payment?

Thank you.

Usually the finance company will give you a cheque or some form of commitment to pay before you transfer title to a new buyer. You should fill the correct section of the book and hand it to the buyer. If you are worried about getting the money from the finance company get them to give you a letter committing to make payment and sign an agreement with the buyer that the transfer of title is subject to receiving full payment either from the buyer or the finance company. If in doubt contact a lawyer. Don't just hand things over without getting a firm commitment or actual money first.

[Dharma65]

Thanks a lot The Don for the useful info.