paying-off early my car loan - extra fees?

[artaxerxes]

Hi all,

I'm quite a noob when it comes to car. I've bought a new Nissan Versa in 2007 from a dealership (St-Clair Nissan) and I've used Nissan Financing for financing the car. I now have enough money to pay the balance outright (about $9000). I've called Nissan Financing and they sent me the exact amount owed and stuff and then mentioned the following: "All funds remitted by a party other than ST CLAIR MOTOR SERVICE must be certified fund". So I called St-Clair Nissan and asked them whether I should be paying off the car through them instead of directly with Nissan Financing.

The person told me that I have to do it through them so they could transfer the ownership to me, but then I will also have to pay $20 of ownership transfer fees, PLUS I have to get emission and safety tests done.

This makes no sense to me. The car's always been in my name so why would there be a transfer of ownership? All I'm doing is paying off the debt early.

Please help!

thx
AM

[johngenx]

They think it's a lease.

[artaxerxes]

They think it's a lease.

So when it comes to plain old buying (no leasing or whatnot), there should be neither ownership transfer fee, nor emission test nor safety test when I pay early, right?

Do you recommand paying off the car through the dearlership or through Nissan Financing? Any advantage either way?

thx
AM

[articsteve]

Assuming you own the car based on a loan from Nissan Canada Finance your selling dealer has nothing to do with you.  Call Nissan Canada Finance and ask for your buyout number as per such and such a date and send them the balance owning exactly the way they asked for it.  They will then remove the lien on your car.  I wouldn't give my buyout money to the dealer.  What for?  So they can charge you an "in house" processing fee or otherwise screw things up.

[artaxerxes]

I wouldn't give my buyout money to the dealer.  What for?  So they can charge you an "in house" processing fee or otherwise screw things up.

That answers my question perfectly. Thanks to all for reading and to johngenx and articsteve for the insightful responses.

AM

[johngenx]

Steve's right.  Stop talking to the dealer and deal only with Nissan Finance directly.  Send them a certified cheque/bank draft.  I'm surprised that they won't take a personal cheque, after all they can wait to release the lien.  When I paid out my MB, MB Credit took a cheque from me.

Make sure that Nissan Finance sends you documentation showing the loan has been paid out in full and ensure that they release the lien on the car.

The dealer has nothing to do with your car now.

[tenpenny]

Make sure you send the payment by certified mail or courier, so you can track receipt, and keep copies of everything you send to them.

[Honda Owner]

In Canada, the only loan you cannot pay out early is a mortgage. You can pay out a car loan or lease any time you want.

The dealer is being a dealer, ie trying to seal your money. Don't deal with them.

[safristi]

"seal yer money" .......i knew there woz a reason we clubbed those lil bastards.............

[dr_spock]

Deal directly with holder of the lien on your vehicle.   Only the holder can remove it.

I think you also can drop off the certified cheque to Nissan Finance in person and get the paper work done there.   They are located in Mississauga if I am not mistaken.   

I paid off my Honda in person with Honda Finance.   Honda Finance wouldn't take a personal cheque either.  It is not difficult to get a cheque certified from the bank. 

[articsteve]

To many personal cheques bounce and then they gotta put at least a ten day hold on it and it's hard to pre-determine the exact payout day/amount.  They will send you a notice in the mail that the lien has been lifted.  However, that doesn't necessarily mean that Equifax or TransUnion gets proper notice.  That's up to you.