If you are a borrower who still owes money to your car, consider some essential things before selling the vehicle. If you owe more than the car is worth, then it’s best to talk with your lender about how they can help you get in touch with an automotive dealer to sell your car for less than what you owe.
Determine how much you owe money.
Your car loan balance is the total amount you owe. It can vary depending on interest rates, fees, and how much your loan has been paid off. Your credit score plays a role in determining your interest rates, so it’s important to know what yours is.
Call the bank that holds your loan and ask them for your balance, or check out their website if they have an online portal set up where you can access this information. You should also be able to see how much of each payment has been made.
Maybe you owe the bank only, or perhaps there are other creditors involved. This is not a bookkeeping guide but an article to help you sell your car the most efficiently and effectively possible.
If it’s just one creditor (the bank), then go ahead and call them up and ask how much they want for the vehicle valuation. If it’s more than one creditor, make sure you know the process for each.
Know your car worth.
This section might be a little harder to do if you’re selling in cash. However, if this option isn’t available to you (you may not have enough funds), or perhaps other expenses need to be taken care of (like insurance and registration), then call around local dealerships and ask what they would offer for your vehicle based on its model year, mileage, condition, etc.
The best thing about doing this yourself is that it can get pretty hectic when dealing with multiple creditors at once. Just try calling up their customer service phone number while negotiating prices between creditors! Get all the creditors you need to settle with on one call (or at least write down their information) and then start calling around.
Find the current private party value of your vehicle, what you’re likely to get if you sell the car yourself, or the trade-in value of your vehicle, which is roughly what a dealer will give you for the vehicle. Generally, you’ll get more for your car in a private party sale than when you trade it in.
Depending on the lender, they might want the buyer to write a check for the total amount; the lender will give you a review for any positive equity, or you’ll have to register a statement to the buyer for negative equity. Alternately, the lender might require only the buyer to pay the loan balance, and payment for positive or negative equity is between you and the buyer.
What is the actual process?
The next step would be getting in touch with your lender or whoever holds the loan for which you still owe money. If it’s just one creditor like a bank, call them up and ask how much they want for the vehicle valuation.
If it’s more than one creditor, then make sure you know the process for each of them (for example: if a credit union holds your loan, call them first before approaching other creditors) so that you don’t get confused while trying to sell your car in cash. If possible, try dealing with just one lender – this saves time and effort on your part!
The best thing about doing this yourself is that it can get pretty hectic when dealing with multiple creditors at once. Just try calling up their customer service phone number while negotiating prices between creditors! Get all the creditors you need to settle with on one call (or at least write down their information) and then start calling around.
Once you have the valuation details in your hand, it’s time to develop a price that buyers can offer. This is where all those hours spent playing Tetris come into play – make sure it fits! It will save you money on taxes (which are pretty high if someone else buys the car from you), and it will save a lot of time.
Once your price is set, make sure you have all the documentation that needs to be given to the buyer! Make copies of everything (original documents as well as photocopies) – this can come in handy later on if there are any issues about who owns the vehicle after you sell it.
There are a few factors that play into how much you can get for your vehicle.
These include the current market value of it, the condition you’ve kept it, and if or not there have been any accidents or insurance claims filed on it in its past. If things have gone wrong with the car damages, sell it to a company that repairs and resells vehicles like mine.
You will need to make sure you research the average prices of used cars in your area before trying to sell yours. This article covers more details and gives some examples of costs that readers should expect their vehicles to go for at sale time.
If your loan is with a local bank or credit union or a large bank with a branch near you, you can often do the deal in that place of business, collect the funds from the buyer, pay off the lender, and transfer title to the new owner all in the space of an hour or less.
Bump up the worth of your car by performing some simple repairs.
This will raise its value since potential buyers are looking for cars that are in good working order. However, keep in mind not to do too many repairs because this may take away from what you can get when selling it later on. There is also a section devoted exclusively to detailing tips, so make sure to read through all of them carefully before attempting anything yourself!
If your title was lost, damaged, or stolen, you should replace it. If the vehicle is abandoned, contact your state’s department of motor vehicles to find out how to proceed. Some old cars may have a bill of sale rather than a title, which can also be used to sell a vehicle.
When selling a car in today’s market, you must be prepared for anything, including repairing your current vehicle. If its engine needs work or if there are any other issues regarding the mechanics of the automobile, these things will need to be
Find a lender that will work with you on payments and terms.
Contact your lender and let them know you want to sell off your car as soon as possible. Have proof of getting a new vehicle (email, etc.) ready if they ask for it. Unsecured personal loans can be a great way to pay off your car loan. Shop around and find the best deal on interest rates for an unsecured personal loan, which will show you multiple offers at once.
You may or may not be able to get someone from the bank on the phone right away; if this happens, leave a message with all of your personal information and any additional questions that you have about selling the car back early.
Make sure to keep records of every correspondence because these records will come in handy when tax time comes around! Once somebody gets back in touch with you about how much money needs to be paid, make arrangements to make payment by either writing out a check or sending a wire transfer.
If you don’t pay the person back for selling off your car, they will take legal action; we cannot stress this point enough! However, you can sell an auto loan in most cases, even if it is not over six months old.
Get your car inspected by a mechanic before listing it for sale on the internet or in person.
You need to know if you should fix it up or sell it as is. Write a clear and concise description of your car. Provide the price, whether it is firm or negotiable, and details about the vehicle. A financed vehicle means you have a lien holder to deal with.
If the buyer has cash, they will buy it from you directly. If not, then your lender should handle this transaction for you. You can request that they take over the loan and pay off any accrued interest owed on loan, so they receive what’s called.
If you still owe money on your loan, write down how much is left to pay off or if it has been paid in full. You can’t sell a vehicle until your lender releases the lien on it unless you are willing to assume responsibility for any remaining balance that needs to be paid if anything happens to the car.
Provide a phone number and email address so that interested parties can contact you with questions or offers. Don’t forget to include your name, too! Get several quotes from different buyers when selling your vehicle privately. There’s no reason not to get multiple bids for such a necessary purchase like this one, especially if you’re dealing with a stranger.
Make sure to include all information that may be relevant such as mileage, how many owners you have had, and if there are any accidents included in the history of this vehicle.
Be honest about what might need fixing.
After your car has been inspected, list the vehicle on sites like Craigslist and eBay Motors so that potential buyers can see what they are getting into before making an offer. Also, you want to take good photos of your car inside and out because people may not be willing to come to check out a dirty exterior if the interior isn’t clean either.
If possible, try taking pictures at night with flashlights – this will give off more light than natural daylight does in most cases resulting in more explicit images for viewers online. The closer you can get these images to show “true life” conditions, the better!
Use social media, classified ads, and word of mouth to sell your vehicle quickly.
Social media like Facebook may be a good way for you to get your vehicle’s details out there fast. In addition, classified ads, word of mouth, and other means of selling a car quickly will help you sell your vehicle before it gets repossessed by the bank or lender.
It’s best to be proactive when selling your car – which means not waiting too long before putting up a for-sale ad. One should also use their social media accounts and word of mouth among friends and family to promote one’s car on sale to get rid of them quickly while giving the best price possible.
In conclusion
The best time to sell your car is when you still have a loan. You can do this by paying off all remaining balance or selling it for the total price. The result will be that you no longer owe any money on your vehicle and can continue using cash-bought with your sale proceeds. This is a great way to sell your car. If you need help with selling your car for the best value, EdFed offers Auto Loan programs that will help you every step of the way.
