Can I Sell My Car If I Owe More Money Than It’s Worth?
Trying to find the answer to the question “Can I sell my car if I owe more money than it’s worth?”
The car market has been changing in the 2020s, and maybe you’ve been asking yourself, “is now the right time to sell my used car?”. If you owe more than your car is worth, then you probably have other questions. Here is what you need to know before you sell a vehicle you still owe on.
Find Out How Much You Owe
There are a few things you need to do as you prepare to sell your vehicle. If you have a loan, you first need to find out how much you owe on your car. You need to contact your lender to find out this information.
The payoff amount includes the total amount you still owe on the vehicle, as well as any interest you have accumulated that needs to be paid off. Your financing company may also have additional fees, like early payoff fees, that you will be responsible for.
Pay attention to the statement you receive from your lender. Most of these statements include a “good-by” date. You will need to make the payment before that date or request a new letter if that date has passed.
Research Your Vehicle’s Value
Now that you know how much you owe, you need to know how much it is worth. There are a few ways you can find out this information. The industry standard for finding out vehicle value is with Kelley Blue Book. They have a user-friendly search engine to enter your vehicle’s information and learn how much it’s worth.
Another way to find out how much your car is worth is to browse listings of similar cars. Many sites have a tab titled “sell my used car” that helps appraise a vehicle.
Some people still list their vehicles in car buying magazines and for-sale sections in newspapers. Online marketplaces are the more common way to sell used goods these days. Craigslist, eBay, and Facebook Marketplace are common online markets where people list their vehicles.
If browsing online listings is not your thing, you can ask a trusted expert to appraise your vehicle. Dealerships can assess your vehicle but may undervalue your car. There are appraisal experts who can also value your car, but these individuals may charge you for their services. A car buying service can also give you a fair appraisal value.
Consider Your Options to Sell
There are a few potential outcomes of selling a car that you owe more money on than it’s worth. By choosing to sell privately, you will need to pay off the loan to the lender before the buyer can gain legal ownership of the vehicle. If you can come up with the difference in what you owe, you can sell the vehicle without retaining any debt. You may need to get an unsecured loan to cover the difference if that is not possible.
If you sell to a dealership or car buying service, you have the option to roll the amount you owe into a new loan. This can be tempting, but can also cause you to be upside down on your new loan since you will be adding debt to the amount of the loan.
I’m Ready to Sell My Used Car
Now you know a bit more about selling a vehicle that you owe more than it’s worth. If you’re ready to sell, there are a few routes you can go. A private sale will earn you the most amount of money for your car. It’s also the most amount of work. Working with a dealership can create a confusing new loan, and you will probably get a lower offer than you would otherwise.
Contacting a car buying company can be one of the easiest options out there for selling your vehicle. They will make you a competitive offer without all the red tape of a dealership. Some will even cut you a check the same day. These kinds of companies are newer but have filled a gap in the car-buying market for people needing to sell their cars.
Knowing If I Can Sell My Car If I Owe More Money Than It’s Worth Can Change Everything!
Use this insightful information to know whether or not you can sell your car if you owe more money than it’s worth. Get your car sold today!