How To Sell A Car With A Loan On It — ::

Car loans are frequent among car buyers and help many of us afford a new car. The only problem is that the minute you drive away from the dealership in your new car, its value starts depreciating fast. By the time you realize you can no longer afford covering the monthly payment, the car will be worth with thousands of dollars less than its original price tag. The only option left will be selling the car, so you will be wondering how you can sell a car with a loan on it.

If you find yourself in such a situation you will just have to follow some guidelines. First of all, you will have to determine how much your car it’s still worth. You can easily find that piece of information by checking the Kelley Blue Book or a NADA guide. In the Kelley Blue Book you will find three different prices for your car, but you should take more interest in the private seller price tag because that’s usually the highest one. But if you want to make sure the price you get is accurate you will have to be completely honest about the car’s condition and the problems that may not convince the buyer to pay a higher price. Also, it’s always a smart move to set an asking price that it’s with a few hundred dollars more than the price you want to get. That’s how you leave room for negotiation.

Having a price in mind, it’s time to find out the amount of money you still have to pay in order to cover the loan. You will then have to subtract the money you can get for your car from the debt and see what amount it’s left. In the end, if you find a buyer, you will have to cover that difference. You should also have a chat with a bank representative and tell him about your plans because you need to make sure that they will give you the car’s title once you cover the loan. Many times, banks deposit the titles in a different location and getting you the title may take a while. By telling them about your plan in advance they can help you by delivering the title faster.

Let’s talk now a bit about that difference you will have to cover. There are a few solutions at your disposal. The simplest one is to use your savings if you have any. If that’s not an option, you will have to think about another loan. There are banks and other financial institutions that may be willing to offer you an unsecured loan as long as you prove you qualify for one. Even if you are still going to have a loan it will be much smaller and the time necessary to cover it will be reduced. In fact, covering the unsecured loan should be a priority because this type of loan usually comes with a high interest rate.

By now, you’ve set an asking price for your car, you’ve figured out how much you still owe on your car loan and how to cover the difference. The last step of our “how to sell a car with a loan on it” process involves advertising the car for a quick sale. Craigslist or eBay Motors are the first used car websites where you should place an ad. The local newspaper or the specialized car magazines in your area are also great choices as well as other websites where you can place ads free of charge. A buyer will soon come along!

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