IF YOU\’RE LOOKING TO SELL A FINANCED CAR, HERE ARE SOME STEPS YOU CAN TAKE:
- DETERMINE YOUR PAYOFF AMOUNT: CONTACT YOUR LENDER AND REQUEST YOUR PAYOFF AMOUNT, WHICH IS THE AMOUNT YOU STILL OWE ON THE CAR LOAN. THIS WILL BE THE MINIMUM AMOUNT YOU\’LL NEED TO SELL THE CAR FOR TO PAY OFF THE LOAN.
- ASSESS THE VALUE OF THE CAR: DETERMINE THE VALUE OF THE CAR BY RESEARCHING ITS MARKET VALUE. YOU CAN USE WEBSITES SUCH AS KELLEY BLUE BOOK OR EDMUNDS TO GET AN ESTIMATE OF HOW MUCH YOUR CAR IS WORTH.
- DETERMINE IF YOU HAVE EQUITY: IF THE VALUE OF THE CAR IS HIGHER THAN YOUR PAYOFF AMOUNT, YOU MAY HAVE EQUITY IN THE CAR. THIS MEANS THAT YOU CAN SELL THE CAR FOR MORE THAN YOU OWE AND KEEP THE DIFFERENCE.
- FIND A BUYER: ADVERTISE YOUR CAR FOR SALE ON ONLINE MARKETPLACES SUCH AS CRAIGSLIST, FACEBOOK MARKETPLACE, OR EBAY. BE SURE TO INCLUDE CLEAR PHOTOS, A DETAILED DESCRIPTION OF THE CAR\’S CONDITION, AND THE PRICE YOU\’RE ASKING FOR.
- NEGOTIATE THE SALE: ONCE YOU FIND A POTENTIAL BUYER, NEGOTIATE THE SALE PRICE WITH THEM. IF THE BUYER IS PAYING IN CASH, YOU CAN USE THE FUNDS TO PAY OFF THE LOAN AND TRANSFER OWNERSHIP OF THE CAR. IF THE BUYER NEEDS FINANCING, YOU\’LL NEED TO WORK WITH YOUR LENDER TO TRANSFER THE TITLE TO THE NEW OWNER.
- TRANSFER OWNERSHIP: ONCE YOU\’VE RECEIVED PAYMENT AND PAID OFF THE LOAN, TRANSFER OWNERSHIP OF THE CAR TO THE BUYER. THIS WILL TYPICALLY INVOLVE SIGNING OVER THE TITLE TO THE NEW OWNER AND COMPLETING ANY NECESSARY PAPERWORK.
REMEMBER, SELLING A FINANCED CAR CAN BE MORE COMPLEX THAN SELLING A CAR THAT YOU OWN OUTRIGHT. BE SURE TO RESEARCH YOUR OPTIONS AND WORK WITH YOUR LENDER TO ENSURE A SMOOTH TRANSACTION.
