Many people find themselves in a position where they’re ready to sell their current car and purchase a new one, before their current car loan is paid off. You used to be stuck with the car until the payments were made, although now some dealers are offering to take over the payments of your current finance loan in exchange for purchasing a car from Japan car auctions online.
But if you want to get what the car is worth, you may be wondering, how can I sell a car that is already under a car finance loan? To start, you’re going to need to figure out exactly how much is left on the current car finance loan you’re carrying. If you can afford to pay it off outright before selling the car, this would be the best option. Once the title is in your hand, you’ll be able to sell the car as you wish.
This is not an option for most people, however, and if you’re trying to get approved for another auto loan bad credit will prevent you from being able to do it while you’re still under your first loan. If this is the situation you’re in, you have options, albeit a little more complicated.
You can try to sell the car for at least what the payoff amount of your current loan is. This would entail not being able to give your potential buyer the title free and clear until after you paid off your loan, and the company processed the title and transferred it to you. Some buyers may not be willing to go through the hassle.
Your other option is to contact the loan company that you’re currently financing your car with, and inquiring as to whether they’d agree to using an escrow service for the sale of the car. This way, when your buyer pays the money, it would go into an escrow account that the loan company would be able to access after the title has been released to the buyer.
You may also try contacting the institution where you’re financing your car, and asking them yourself, “how can I sell a car that is already under car finance loan?” They may be better equipped to assist you in this kind of situation, and even if they can’t help you, they may be able to point you in the direction of someone who can.
If this seems like too much of a hassle, consider shopping for your new car at a dealership that offers you the chance to get out of your current auto loan. Some dealerships are allowing new customers to trade in their vehicles that are still under financing, and adding some or all of the costs to their new auto loan.
With this method, you can drive the new car that you want, but manage the monthly payments. Just make sure to use a car loan calculator so you know what you can and can’t afford – rolling your old auto loan into your new loan can make the monthly payments higher than expected. So, now when you wonder, how can I sell a car that is already under car finance loan? You’ve got a few different options to choose from!