How to sell a car with a loan
Selling your vehicle is never easy. Under the best of circumstances, it’s still a ton of work. If you want to sell it privately, you’ll need to create an ad with an online classified website. That takes hours in and of itself: you’ve got to clean up your vehicle, take top quality photos, write a great description, and post the ad online. From there, you’ll be hit with a barrage of texts, emails, and phone calls inquiring about your vehicle. And, after weeks or even months of dealing with all of this, you still might not sell it. Selling your vehicle to a dealership is another possibility, but dealers rarely pay what your car’s actually worth.
And, of course, if you’ve got a car that’s officially reached junk car status, selling it online or to a dealership isn’t really an option. In that case, you’ll likely want to go with a junk car buyer, or a scrap yard or junkyard. You want to make sure you choose a reliable buyer, like Junk Car Traders, in Nebraska they are known for their years of experience and great costumer service.
Regardless of how or why you’re looking to sell your vehicle, though, there’s one situation that can really complicate things: when you vehicle has negative equity. If you’re not familiar with the term, it essentially means that you still owe money on your vehicle, rather than owning it outright.
If you need to sell a car with an outstanding loan, you’ll need to assess your situation before moving forward. Here’s what you need to know.
How much do you owe?
First off, call the bank or lending agency and inquire about the balance of the loan. You need to know exactly how much you still owe before you proceed with trying to sell your vehicle. It’s also worth asking the bank if there are any special steps you’ll need to take while selling your car: some lenders have specific procedures in place. You can even ask your bank for a “payoff letter,” which is essentially a letter that lays out exactly what you owe on your vehicle.
Pay off the outstanding amount
Once you know what you owe, you have two options. First, you can pay off the outstanding amount, at which point the car will be yours.
For many people, this isn’t a possibility. Instead, you’ll need to sell the vehicle before you have the money to pay off the outstanding loan. In this case, be sure to explain the situation to your potential buyer. Your best bet is having the buyer accompany you to your bank. You can complete the transaction there: the buyer can pay you, you can pay off the loan, the bank can release the title, and you can sign the title over to the new buyer. The whole process is actually fairly simple. You’ll just want to be upfront with your buyer, so that they don’t get cold feet at the last minute.
If you’ve got an old junk car, your best bet isn’t finding a private buyer: it’s selling it to a professional junk car buyer in your area. When you’re looking to sell a junk car, the choice is simple: just call Junk Car Traders, or visit our website at JunkCarTraders.com.
References
https://www.autotrader.com/car-tips/how-to-sell-a-car-if-the-bank-has-the-title-215870
