Sell A Financed Car
No matter what reasons you may have for selling your financed car, you should know that you can sell it. The only problem is that you will need to handle the sale a bit differently from the sale of a paid off car and be prepared for a more difficult task. But, if you realize that you’ve ended up owing more money for the car than it’s worth it, it’s definitely time to do something about that.
Most people end up in such situation because a new car depreciates fast due to the many incentives offered by car manufacturers and dealers. In addition, most people choose loans that are going to be paid off in years (up to seven years) rather than in just 36 months. That’s a solution if you want to have low monthly payments, but it affects you on long term. Another factor that contributes to a financial disaster is the fact that most people aren’t willing to cover a down payment of 20% of the car’s value the moment they purchase it. That decision usually ends up costing people around $4,000 extra.
So, if you need to sell your financed car, you can choose to trade it to a dealer for a new car, but in most cases the money offered for your old car are less than what the car is worth. If you’re no satisfied with this option you can choose to sell the car privately, but that takes time and energy especially if when you have an active loan. To deal with the situation you will have to first of all visit the local DMV and find out what rules need to be followed and what paperwork needs to be filled in order to legally sell a financed car. The next step involves having a chat with your lender in order to determine what you need to do to get the lien released, because otherwise you won’t be able to transfer the car’s title to the buyer you find.
The main problem is that no buyer will agree to pay you the money without a clean bill of sale. To make that happen, you should talk to the lender in advance and ask the potential buyer to accompany you to the lender’s office. That is the best place to finalize the deal if the lender agrees to release your car’s title once you pay him the remaining debt. If the lender doesn’t agree to such a meeting or if he is unavailable when the buyer wants to close the deal, your only option is to look for a short-term loan or a personal loan if you have good credit. You can also try to get a cash advance on your credit cards, but that’s a last option.
To make sure that you get the best price possible for your car you should clean the car’s interior and exterior and make sure there aren’t any mechanical problems that a buyer may use as an argument and offer a lower price. You need to take care of the advertising as well, especially if you want to quickly sell your financed car. Make good use of the local newspapers and the online websites that offer support for people who sell used cars privately. In the ad that you create you can also mention the loan and if it’s assumable or not. There are people interested in taking over someone’s loan therefore you should explore all the possibilities.
What’s important is that financed cars can be sold if you have some basic knowledge about the process.
Post tags: Tags: automotive articles, sell a financed car
