How to sell a financed car
How to sell a financed car means selling the car bought with financing in which the dealer or seller sells to you to another buyer. This means you sell a car out to another buyer whereas the car you sold is a financed car. You might still be owing or still financing the car or you might have finished financing the car but you still have to sell it. I don’t need to give too much explanation on financing a car.
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9 Steps to sell a financed car
- The first thing ever to do before getting how to sell a financed car is knowing how much you still owe on the car. You can do this by calling the bank that lent you money to finance the car or the car dealer who owner financed the car for you. Know the amount you have left to be paid.
- Get the value of the car itself at that particular time. This is usually done to avoid negative equity in which the amount owe is more than the value or price of the car at that time. For example, if you are still owing like $50,000 on the car to be sold and the value of that car at that moment is $45,000. You have your equity been negative as the amount owed is more than the value of the car. Since the main reason of selling the car is to get the loan for buying the car covered, the value of the car must be more than the amount owe at a very reasonable rate. Like if the value of the car is worth $10,000, your loan should be amounting to something like $5,000.
- If your equity is positive, you can list the car out for sale. Make necessary advertisements and let to it be known that the car is up so sale. If you cannot see any one to buy the car from you, you can take it up to any car dealer to help in selling the car or the dealer might even buy the car from you. It get easier if you approach the dealer that sold the car for you. He might buy it from you and sell it out or assist you in getting a buyer for it. Make it known when sending out ads that the car is up for best offer.
- You should wait for any potential buyer who has the will to buy the car at that moment. Get him agree with you on a particular amount of money which would be favourable for you. Do not forget should make an agreement on how the payment should be made. That is if it is by cash or by bank transfer.
- Before selling the car, you should ask about the lender’s procedure and the promissory note from the lender or the car dealer as he still have the power to sell the car as long he still has the lender’s procedure with him.
- You can make the buyer pay to the bank instead of giving you by cash or transfer in other to convince him about you selling the car without still keeping the title to yourself. Many buyer fear of buying financed car as the seller might have to keep the title to themselves after payment has been made. To convince him about the payment, you must make sure any extra fees that is supposed to be paid to the lender should be paid as it is not the buyer responsibility to pay this extra charges. This is very crucial step in how to sell a financed car.
- Get the papers of the car ready to be given to the buyer. Make an arrangement to meet in any of the buyer location to get the papers for him. Sign every necessary documents like TO transfer of ownership.
- Get yourself to file for release of liability as if you did not file this with department of motor vehicles, you may be charged for any crime with whatever the buyer use the car to commit. Also cancel the insurance on the car as it is not yours anymore to avoid removal of money from your account for the ongoing insurance on the car.
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- Make sure to make every necessary payment to the department of motor vehicles. To get this done, you can check your local department of motor vehicles.