Expert: Richard L Carranza - 5/3/2005

Question
Hello, thank you so much for your time.
My husbands ES 300-1996 Lexus was stolen in 2001. We recovered it with the entire dashboard missing.  We have not really had money to have someone check it to see if it even runs. We figured since its electrical, and the dash was stolen, it must not run.  My question is if he still owes $5K on it, could he sell it for $1500, and keep his name on the loan.  He thinks its impossible because the car is still not totally his.  Please let me know what we could do, we want to take it off our hands but still get some money for it since it was in great condition before it was stolen.  

Answer
I agree with your husband.

If you husband is still paying off a car loan then any procceds from a sale of the car would have to go towards the loan balance.  Any owed balance after that would have to be paid immediately at that point as there is no longer any equitable interest iun the vehicle and technically nothing to repossess if the loan is defaulted.

Hope and trust that the above answers your question.

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Thanks