880 Walkers Line, Burlington, ON, L7N 2G2, Canada

How to Sell a Car that has Negative Equity

How to Sell a Car that has Negative Equity

Negative equity isn’t an issue until it comes time to sell the car while you’re still upside down. That still doesn’t have to stop you selling your car though.


Follow these tips and you too can sell your car with negative equity and come out the other side free and clear.


First the important news. You cannot sell a car privately with negative equity. You can only sell your car to a dealership.


Until that auto loan is paid off in full, you won’t have legal title to sell it. As the vast majority of loans are secured on the car, that car isn’t yours to sell until the loan has been settled.


You will also need cash on hand to be able to pay the balance of the loan.


You can sell your car to us with negative equity though.


Selling cars with negative equity


The reason you can sell your car to a dealership with negative equity is because we can work with your lender to ensure the loan is paid off in full.


It will mean not getting paid until the loan has been settled but the rest is plain sailing.


You will need a settlement figure and enough cash to settle the difference to be able to do this though.


Contact your lender


Your first task is to contact your lender for a settlement figure. This is how much you’ll need to pay them to settle the loan. The figure will be good for 28 days or until your next payment, whichever is soonest.


You should also tell your lender what you’re planning to do so they are ready to work with us when the time comes.


Get the car ready to sell


Next, prepare the car so you can get the most money for it. That means a thorough clean inside and out, checking and replacing any perishable parts like wipers, tires, hoses and trim.


Make any small repairs that might impact the value offered for your car.


Check your car’s value


Next, get an idea of how much your car could be worth using Carfax, Kelley Blue Book, Auto Trader, eBay, Craigslist and Kijiji.


Compare like-for-like, the same make, model, year and trim. Take an average value from all the cars you find to come up with a value somewhere in the middle.


While it won’t be exact, it will give you an idea of how much extra you’ll need to put in to clear the loan.


Get the money together


Once you know how much you’ll need to pay, it’s time to get the money together. Save it if you need to or make it readily available so you can pay it when we settle the loan.


Come to our dealership


Come visit a dealership, get your car appraised, accept our offer and we’ll help you settle the loan and sell the car. There is a bit of paperwork involved and it may take a couple of days, depending on how fast the lender works, but we get it done.


Once everything has been agreed, we both pay the lender what is owed, we get the title for the car and you get to walk away free and clear.


Selling your car to a dealership is the best way to go. Come see us and try it for yourself!


For any questions or concerns, please don't hesitate to contact us here!


Thanks for reading. Be sure to connect with us on FacebookTwitterInstagram, or LinkedIn to stay up to date on our latest great articles!

Categories: sell your car