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How to Sell your Car you Still Owe Money on

How to Sell your Car you Still Owe Money on

Are you looking to sell your car, but you still owe on it?  Here are some tips on how to move forward.


Find out what your car is worth


First and foremost, do some research and find out what your car is worth on the current market.  Using sites like CarFax, Kelly Blue Book, Auto Trader, Kijiji & eBay, can give you insight into how much you might be able to expect as an offer.  Compare that with how much you still owe on the vehicle before ultimately making your decision.


Do you want to sell privately or to a dealership?


Selling privately has its perks, but it can be complicated when you still owe on your vehicle.  Potential buyers will be more wary of purchasing a vehicle that isn’t fully paid off, and the process of transferring title to the new owner could be complicated.


If you sell your car to a dealership, the finance department can help you pay off what you owe with the money you receive from the purchase or roll it into a new loan on another vehicle.  Be aware though, if your car is worth less than what you owe, you could end up taking on more debt instead of cash in hand.


Can you pay off the remainder prior to selling?


Sometimes a consolidation loan can help with getting your payments down and under control.  You can roll your remaining car loan into the consolidation and your vehicle will be paid off and you’re free to do what you like with it.  This is a good option if you have several high interest loans or credit cards at once and want to simplify your payments.


If you have savings and can pay off the remainder of your loan prior to selling, that can also help make it easier to sell.  This is really only a good option if your car is worth more than the amount owing.  Otherwise, you end up spending more than you’ll get in return.


If you’ve done your homework and decide you’re ready to make the move and sell your vehicle, we want to help.  Get started with an appraisal, then come visit us to talk through your options.


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