After a buyer and seller accept a price, we'll contact the seller's lender (the "lienholder") and confirm their loan payoff amount. Sellers get an email when we obtain this information from their lender. We won't allow the buyer to submit payment for the vehicle until we get the loan payoff amount.
When the seller gives their vehicle to the buyer, we'll mail a payoff check to the lender. Most lenders require us to send payments by check and it usually takes 7-10 business days for the payment to be reflected on the seller's account. The lender will release the lien on the title and mail it directly to KeySavvy. It usually takes 4-6 weeks for us to receive a title after we mail a payoff check. We'll email the buyer a temporary permit that allows them to drive legally while waiting for the title.
Once we receive the title, we'll transfer it to the buyer and mail it along with other paperwork required to register the vehicle. Buyers receive an email with a tracking link when the title is headed their way.
What if the vehicle is being shipped?
When a vehicle is being shipped to the buyer, we'll mail the loan payoff check when the seller gives their vehicle to the shipper.
Does the seller need to sign their title?
If the seller has their title (only certain states), we'll provide detailed instructions for signing and mailing the title to KeySavvy. If the seller doesn't have their title, we'll mail them a power of attorney form and a return envelope. This allows us to sign the title on their behalf when we receive it from the lienholder.
It's Sunday, what if the seller's lender is closed?
Outside of normal business hours, we may not be able to obtain the payoff amount from the lender. When this happens, you may have to wait until the next business day to continue your transaction. If you're buying or selling a financed vehicle, consider these possible delays and plan ahead to ensure a smooth transaction.
What if the seller owes more than the sale price ("underwater")?
We work even if the seller is underwater. Instead of paying the seller the difference between the sale price and the loan payoff amount, we'll collect a payment from the seller instead. When a seller is underwater, we won't approve a transaction until we've verified payment from both the buyer and seller.
Can a buyer take over the seller's loan payments?
Probably not. When you take out a loan to buy a car, the DMV records a lien against the title. If there is a lien on the title, you almost certainly cannot "pass on" your loan along with your car and have someone else make your payments.
Additionally, if you have an auto loan from a bank, credit union, or other financial institution (including dealer financing if you bought new), your loan contract probably prohibits passing on your loan to someone else.