What if I still owe money on the car?
If you still owe money on your car, you’ll need to arrange to pay it off either before the sale or as part of the sale.
Does someone want to buy your car? Well, If you still owe money on your car through an existing loan, you’ll need to arrange to pay it off either before you complete the sale or as part of the sale. Contact whoever you owe money to and ask what it'll cost to pay off the loan.
Can I still sell my car with money owing?
Most lenders will let you sell the car as long as the money from the car sale goes to them directly, or the car title is transferred to the buyer and they’re willing to take on the remaining balance. Here are some top tips to keep in mind:
- Make sure you’re open with the buyer about how much you owe as they may still be interested in buying the car. It can be risky for them, so make the process as easy as possible. Also, the buyer may feel more comfortable dealing directly with the lender rather than with you when paying.
- Provide car loan amount details to the buyer so they can potentially pay some of the amount you owe directly to the finance company to clear the debt. Afterwards, you can start the process of removing the security with the finance company and transferring ownership.
- Make sure you check for any potential administration and bank fees and who would pay for these.
What if the buyer is using a loan to purchase the car?
You still need to make sure you receive payment from them, or the loan company, before handing over the car. To complete this you’ll need to give the buyer your account details. Depending on the loan company’s process, they’ll most likely transfer the funds.
Now that you’ve cleared up any money owing issues on your car, it’s time to think about how to best deal with potential buyers. Don’t sweat it, we’re here to help with that too.
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