When she was still reasonably mobile and with her faculties around her six months ago, I agreed to buy her a used car, a Toyota from a local used-car dealer. I should have had her go for a full purchase and not the loan we took out, but what’s done is done. OK that said with her passing 3 weeks ago I now need to get rid of it. I’d be perfectly happy to come reasonably close to breaking even on the loan. Could I sell it back to the dealership, or another local one? [Yes I know that I’d likely not get a great deal] Would the loan then get paid off from the proceeds? I’m not crazy about taking the Craigslist path given how many scammers operate there. She has another car in another state which I’ll also be selling (that one is much older and long paid off note).
If there is a CarMax or AutoNation anywhere nearby take the car to them. They’ll appraise it and pay cash on the spot.
The old dealer might also buy it, but not out of any interest that they sold it previously. They just want inventory.
As with all things estate related, if you have days of spare effort available to wring a little more money out of this stuff you can do better elsewhere. But if your main motivation is simply to get rid of the stuff and generate what cash you can as easily as you can, visit CarMax or the equivalent.
Check with them first based on make, model, and year, as they don’t buy ancient clunkers and the definition of “ancient clunker” shifts with supply and demand of/for used cars.
As to the loan …
Whoever buys it can’t take title except with the permission of the current lender. So the process amounts to the buying dealership paying off the loan, taking the car, and either they pay you or you pay them whatever money it takes to balance their books vs the agreed price.
This is utterly routine stuff for any car dealership. They will make this as painless as possible. Which of course also depends on how painful the lender wants to make it. Some are easy, some seem to live to say “no”.
If you did try to sell to a private party, you’d probably need to pay off the loan first yourself and get clear title. Then try to sell it PP. That loan payoff and title process can easily take a month getting the right paperwork through the state bureaucracy and into your hands.
Back in Ye Olden Tymes I bought and sold a lot of used cars as a side biz. I’d never buy one with a loan on it. “Call me back when you’ve got clear title” is what I said every time. I doubt things have changed much in the used car game.
Speaking of which, as to Mom’s paid-for car in the other state, make sure you have both the registration and the title document. If not, you’ll need to get copies from the state. Which can be a slow-moving bureaucratic adventure, and doubly so if the owner is dead and you’re claiming to be the person handling the estate. Start the paperwork process sooner rather than later is my main suggestion.
When I sold my old clunker, I parked it in my credit union parking lot, held up a sign with big black letters on a fluro pink signboard, & sold it within two hours.
Got my asking price, too.
No cut to anybody, & the CU gave me free Notary service to boot. And the use of their conference room to sign the papers.