How to Sell a Car When You Still Owe Money on It

September 10, 2021

Are you thinking about selling your car? Do you want to upgrade to a newer, better car? Or maybe downgrade to a cheaper car because the instalments are too expensive? Then you can sell your car even when you still owe money on it.  

sell a car

Get the Value for Your Car

You can find the value of your vehicle online, which will give you both the trade and retail value for your car. Use the trade-in price as a guide when selling your car. It is also a good idea to find cars similar to your car online and see how much others are selling them for.

Keep in mind that the value is influenced by the condition. The better the condition that your car is in then the more it will be worth.  

What is the Payoff

You need to know how much it is you owe on your car. You can ask your lender for a payoff balance.  

With the payoff balance, minus the trade-in value of your car. This will show you what you could get from selling your car or what you still owe from selling your car.

If you see that you would still owe money to the lender even after you have sold your car, then you might want to wait.If you can’t wait then you will have to pay off the remaining amount still.

Once You Know What You Could Get

You can sell your car to a dealership or privately. Either way, the sales process is similar with only a few differences.

If you are ready to sell your car, first disclose what you owe to a lender. The money that you owe a lender will be deposited directly into the lender’s account and anything left will be deposited into your account. Once, the lender has their money, you will receive the car’s title.

After everyone has their money, sign the paperwork, change the ownership and hand over the title and keys. 

You can sell your car, even when you owe money on it. But keep in mind that your loan might not get paid off, in which case you should wait to sell if you can. If you can sell, settle the loan and get some money back then you can sell your car with Cars2Sell.

Cars2Sell is a safe selling platform where you can advertise your car for free. It only takes a few minutes to list your car and you will start receiving enquiries in no time at all.

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