Preparation is the Key

• 1
  Nothing says paid like cash.money image by cherie from Fotolia.com
  
  Contact the lender, telling them you want to pay off the balance due and get the title because you are doing a private sale. You also must know how long the payoff is good. This means that they will calculate interest for the time they think it will take you to send them the money. If you take longer, the whole process will be upset. Document all your conversations and send all mail with some type of tracking number.
  
  
• 2). Instruct the lender to send you the ownership certificate, otherwise known as the title. If you do not specifically tell them you are doing a private sale, they may send it off to the Department of Motor Vehicles for re-issuance in your name. Their efficiency may cost you as much as six weeks delay. When you receive the title, make sure the lender has released their interest by signing the form in the required space. If they are really accommodating, they will process the transfer for you and have the title issued in the buyer's name.
  
  
• 3
  Sold!sold stamp image by Tjall from Fotolia.com
  
  Inspect the title document and make sure the lender released the lien. Locate the place you will sign when you receive the money from your buyer.When you are paid, sign the title over to your buyer and complete the bill of sale.