Home Blog Automotive Carvona offered us 15k for our car that is kbb at 23k, What Gives? Car Title Process, You don’t need a Dealer!
Carvona offered us 15k for our car that is kbb at 23k, What Gives?  Car Title Process, You don’t need a Dealer!

Carvona offered us 15k for our car that is kbb at 23k, What Gives? Car Title Process, You don’t need a Dealer!

Learn the process and save major money

Our primary objective is to help our community do business. A lot of business is actually expensive , but if you take the time to identify the processes involved you can reduce these a lot. I mean Hugh. Remember, there is no Lemon Law for used cars in Florida and Buying from a dealer doesn’t offer this protection either. Dealers make you sign Sold As Is statement unless it specifically says with warranty, don’t expect it. You can pay for that big glorious showroom if you want but i’d prefer to put that money into my own domain.

Crazy dealer fees? How in the hell can car dealers afford these massive buildings? Dealer Fees, service contracts, overpriced service expenses, lets try to identify the process so we can remove the dealer from the transaction. There is no magic to the car buying process, it takes a lot of due diligence, home work, personal introspection and The Art of the deal. Understand the sellers motivation, get a sense of the sellers credibility and don’t purchase using emotion. Facts and findings are key! Be willing and ready to walk away.

You need a used car cause you cant afford 45k for a new one, I mean really, if you can than this post is not for you. But if you are like most that’s just insane.

1. The first road block is actually the handling of cash, if your purchasing a 20 thousand dollar car that’s 200 bills of 100 dollars. That’s a big stack of cash. And of course we have all read about the classifieds scams where you show up with cash to purchase a car but you get jacked instead. This definitely does not have to be the case and using a car dealer as the go between is not worth 1000 dollar fee. We will extract that process later.

2. The car title has to be clear of leans and clear of other issues. (it’s up to you if you purchase a rebuilt title) this is not recommended. explained later

3. The car has to be inspected. Doesn’t matter if you have a friend, a dad, or pay someone professional the car has to have a visual inspection.

4. Getting a loan Again this is where most people just give in and use a car dealership. Sure you have to sit there for 4 hours but you get a loan, you get rid of your old car and your driving something different with a bigger payment and more insurance cost but i guess that’s just the end game of the frustration of buying a new vehicle.

5 Exploring the for sale by owner and understanding the used car resale value scam. I call it a scam because when you look at the online auto resale estimate you see the resell, whole sale, dealer estimates, and it’s grim. Our example is an offer of 15k from carvona for a kbb value of 23k

Covering the bases. The Title that has a lender lean

Remember to be patient, persistent, and thorough to ensure a smooth transaction.

If you’re looking to purchase a newer car that has a title lien in Florida, it’s essential to understand the process and requirements involved. Here’s a step-by-step guide to help you navigate the process:

Step 1: Check the Vehicle’s Title Status

Before making an offer on the car, ensure the vehicle’s title is clear of any liens. You can check the title status with the Florida Department of Highway Safety and Motor Vehicles (DHSMV) or a title search company.
Read and follow the tips provided by the Florida

Step 2: Verify the Lienholder’s Information

Once you’ve confirmed the title is not clear, you’ll need to verify the lienholder’s information. This can be done by reviewing the title or contacting the lienholder directly.

Step 3: Determine the Lien Amount

Find out the amount of the lien and whether it’s a first or second lien. This will help you determine the total amount you’ll need to pay to clear the lien.

Step 4: Negotiate with the Seller

Work with the seller to negotiate a price that takes into account the lien amount. You may need to offer a higher price to compensate for the outstanding lien.

Step 5: Pay off the Lien

Once you’ve agreed on a price, you’ll need to pay off the lien. This can be done by paying the lienholder directly or by using a title loan company.

Step 6: Obtain a New Title

After paying off the lien, you’ll need to obtain a new title from the DHSMV. This will require submitting the necessary paperwork and paying any applicable fees.

Step 7: Register the Vehicle

Finally, register the vehicle with the DHSMV and obtain a new registration.

Additional Tips

  • Be cautious when purchasing a car with a title lien, as it may indicate the vehicle has been repossessed or has other issues.
  • Consider working with a reputable title loan company or attorney to help navigate the process.
  • Make sure to review and understand all paperwork before signing any agreements.

Auto financing is not a Title Loan, don’t confuse these

Florida title loans are a type of loan that allows individuals to borrow money using their vehicle’s title as collateral. Unlike auto financing, which is a type of loan that is specifically designed for purchasing a vehicle, a title loan is a short-term loan that can be used for various purposes, such as paying bills, covering unexpected expenses, or consolidating debt.


  • Auto Financing: Specifically for purchasing a vehicle.
  • Title Loan: To obtain quick cash using an already-owned vehicle as collateral.

Loan Terms:

  • Auto Financing: Longer terms (3-7 years), lower interest rates, monthly payments.
  • Title Loan: Short terms (usually 30 days), higher interest rates, lump-sum repayment.


  • Auto Financing: Lender holds the title until the loan is paid off; you use the loan to buy the car.
  • Title Loan: You already own the car; you use its title to secure a loan.


  • Auto Financing: Lower risk if you can afford the monthly payments.
  • Title Loan: High risk due to short repayment period and high interest rates; risk of losing the vehicle if you default.

The lenders and the process of the loan. This would be the route if your purchasing a car with an existing lean, The lender doing the leg work on clearing the existing lean and establishing a new title with new recorded lean

In Florida, getting an auto loan on a car with an existing bank lien involves several steps. Here’s a detailed process to guide you through, By following these steps and ensuring all paperwork is properly filed, you can successfully obtain a new auto loan on a car with an existing bank lien in Florida.

1. Evaluate Your Current Loan and Car Value

  • Check Loan Details: Determine the outstanding balance on your current auto loan.
  • Assess Car Value: Estimate the current market value of your car. You can use online tools like Kelley Blue Book or Edmunds for this.

2. Shop for a New Loan

  • Compare Lenders: Research and compare auto loan offers from banks, credit unions, and online lenders.
  • Pre-Approval: Consider getting pre-approved to understand potential loan terms and interest rates.

3. Apply for the Loan

  • Documentation: Gather necessary documents such as proof of income, proof of residence, identification, and details of the existing loan.
  • Application: Submit your application to the chosen lender. Provide information about the car, including its VIN, mileage, and current lienholder details.

4. Loan Approval and Payoff

  • Approval: Once approved, the new lender will provide the loan amount and terms.
  • Pay Off Existing Loan: The new lender typically pays off the existing loan directly to the current lienholder.
  • Lien Transfer: The current lienholder releases the lien, and the new lender places a lien on the vehicle.

5. Title Transfer

  • Lien Satisfaction: Ensure the current lender files a lien satisfaction with the Florida Department of Highway Safety and Motor Vehicles (FLHSMV).
  • New Lien Recording: The new lender will file the lien with the FLHSMV, updating the title to reflect the new lienholder.

6. Registration and Insurance Update

  • Update Registration: Make sure the vehicle registration reflects the new lienholder. This might be automatically updated when the new lien is recorded.
  • Insurance Notification: Inform your auto insurance company about the change in lienholder to update your policy.

Detailed Steps with Considerations

  1. Check Loan and Car Value
    • Review your current loan payoff amount by contacting your existing lender or checking your loan statements.
    • Use online valuation tools to estimate your car’s current market value, ensuring it’s higher than the loan payoff amount.
  2. Research and Apply
    • Compare rates, terms, and conditions from multiple lenders to find the best deal.
    • Gather financial documents like pay stubs, tax returns, and bank statements for the loan application.
    • Complete the application with details about the existing loan and your car.
  3. Payoff and Lien Transfer
    • Upon approval, the new lender pays off your existing loan directly.
    • The existing lender sends a lien release to you and the FLHSMV.
    • The new lender files a lien with the FLHSMV, establishing their interest in the vehicle.
  4. Title and Registration
    • Ensure the FLHSMV updates the vehicle title with the new lienholder information.
    • Confirm with the FLHSMV that the title has been updated to avoid any legal issues.
  5. Insurance Update
    • Notify your insurance company about the new lender to update the lienholder on your policy.
    • This ensures that the new lender is listed on your insurance policy as the loss payee.


  • Check Fees: Be aware of any fees associated with refinancing, such as loan origination fees or title transfer fees.
  • Credit Score: Ensure your credit score is in good shape to qualify for better loan terms.
  • Gap Insurance: Consider gap insurance if your car’s value is less than the loan amount to cover any difference in case of a total loss.

Our Example to illustrate the purchase process of selling and buying from individuals avoiding dealers and dealer fees. If you consider talking and interacting on selling it might be best to go the dealer route but be forewarned it’s a big hit, our example was 7 thousand dollars we put on the table.

The dealer offer was 16 on a car with a high resale value of 23. Plus the dealer fees on a new vehicle are not included. You can see how a life event, needing a different vehicle can be very costly but this is un necessary.
our example goes like this. We purchased a beautiful sports car, a civic SI, very low miles for 25k. Then for only God’s reasoning we ere blessed with a baby and the SI became unnecessary and not practical. To go back to the dealer 12 moths later was going to cost us at the minimun 4k to 7k. Understanding the situation and the options on the table.
* Do the dealer and lose 5k plus pay fees for a new car or
* sell out right and put the cash toward a better purchasing position, maybe even buying from another aware person who doesn’t want to pay for a glorious auto show room for the dealer

We have a loan on our title and it needs to be satisfied before transfer.
By reading the DMV site the load holder can remove the lean electronically but this would require us to have the cash to buy it out, if this is not possible, which it is not then we need to use the service of a finance company, this should be arranged by the purchaser if they are financing. If they are paying cash there will need to be a third party involved to guarantee the purchase funds actually satisfy the lean.

Handling a car loan with an existing lien when selling or refinancing the vehicle.

Key Points

  1. Existing Loan and Lien:
    • Your car currently has a loan, meaning there’s a lien on the title held by the lender.
    • The lien must be satisfied (paid off) before the title can be transferred to a new owner.
  2. Electronic Lien Removal:
    • The lienholder (current lender) can remove the lien electronically through the DMV.
    • This requires you to pay off the loan in full. If you don’t have the funds to do this yourself, you need another method.
  3. Using a Finance Company:
    • If you can’t pay off the loan directly, a finance company can help. This is typically arranged by the purchaser if they are financing the purchase.
    • The finance company will provide the necessary funds to pay off the existing loan and obtain a clear title.
  4. Purchaser’s Responsibility:
    • If the buyer is financing the purchase, their lender will handle the payoff process.
    • The buyer’s lender will send the payoff amount to your current lender, clear the lien, and then hold the new lien on the vehicle.
  5. Cash Purchase with Third-Party Involvement:
    • If the buyer is paying cash, a third party (like an escrow service or a title company) should be involved to ensure the funds are used to satisfy the lien.
    • This guarantees that the current loan is paid off, the lien is removed, and the title can be transferred to the buyer.

Detailed Process

  1. Identify Payoff Amount:
    • Contact your current lender to get the exact payoff amount for the loan.
  2. Buyer Arrangements:
    • If Financed by Buyer:
      • The buyer’s lender will arrange for the payoff.
      • The lender will send the payoff amount to your current lender, who will then release the lien.
      • The title will be updated with the new lienholder (the buyer’s lender).
    • If Cash Buyer:
      • Use an escrow service or title company.
      • The buyer deposits the purchase amount with the third party.
      • The third party uses the funds to pay off the loan, ensuring the lien is cleared.
      • Once the lien is removed, the title is transferred to the buyer.
  3. Lien Release and Title Transfer:
    • After the loan is paid off, the current lender will electronically notify the DMV to remove the lien.
    • The DMV updates the title to reflect that there are no outstanding liens.
    • The title can then be transferred to the new owner (the buyer).
  4. Documentation and Verification:
    • Ensure all documentation is in order, including lien release confirmation from the lender and title transfer forms.
    • Verify with the DMV that the lien has been removed and the title is clear for transfer.

Example Scenario

  • You Owe $10,000 on the Car: You find a buyer who wants to purchase your car.
  • Buyer Financing:
    • The buyer arranges financing through their bank.
    • The buyer’s bank agrees to loan $10,000 for the car.
    • The buyer’s bank sends $10,000 directly to your current lender.
    • Your lender releases the lien once the $10,000 loan is paid off.
    • The DMV updates the title with the new lienholder (buyer’s bank).
  • Buyer Paying Cash:
    • The buyer places $10,000 into an escrow account with a title company.
    • The title company uses the $10,000 to pay off your current loan.
    • Your lender releases the lien.
    • The title company then transfers the clear title to the buyer.

By following these steps, you ensure that the lien is satisfied properly and the title is transferred without any issues. This process protects both you and the buyer, ensuring a smooth transaction.

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