Can you Sell a Car Still Under Finance in Burlington?
Can you Sell a Car Still Under Finance in Burlington?
Posted on September 24, 2021
Planning on selling your car soon? Wondering if you can sell a car still under finance? Anything is possible when you put your mind to it, or when you work with the right dealership.
It isn’t ideal to sell a car while you still have a loan secured on it but it is possible.
This is one of the many situations where selling your car to a dealership has clear benefits over selling privately. We don’t know many private buyers who would pay for a car and be willing to wait for a clear title for it!
What Happens when you Sell a Car Still Under Finance
When you trade in a car, the amount outstanding is usually rolled into the next loan or covered by a down payment.
When you sell your car to a dealership, there is no other loan. The process is still relatively simple though. All we do is work with your lender to settle the loan so we have clear title to the car.
Any money that’s left over we transfer into your bank account.
Selling your car to a dealership
The process works a little like this:
Prepare the car for sale – Do all the usual preparations ready for sale. Clean the car inside and out, make any minor repairs, check tires, wipers and perishable parts, check lights and bulbs and make the car look as good as it can.
Get a settlement figure – Contact your lender, explain what you’re planning and get a settlement figure. This will tell you how much you’ll need to pay them to settle the loan. This figure will usually be good for 28 days or until your next loan payment, whichever comes first.
Value the car – Check your exact make, model, year, trim and mileage on Carfax, Kelley Blue Book, Auto Trader, eBay, Craigslist and anywhere else that sells cars. Get an idea of what your car is worth and compare that to your settlement figure.
If the numbers work out, you can proceed. If the car’s value isn’t enough to settle the loan, you’ll need cash to pay the difference.
Get the car appraised – Make an appointment at one of our dealerships to get the car appraised and valued. It doesn’t take long. We inspect the car, take it for a quick test drive and work out how much it’s worth.
Accept the offer – If you like the valuation, accept the offer and we can do the paperwork.
Paperwork – The paperwork will include the sale of your car to us, the clearing of the auto loan with your lender and the payment of the balance into your bank. It may take a little while, depending on how quickly your lender works.
We cannot give you your money until we have paid off the auto loan and have the car free and clear. Once done, we can send whatever is left to your bank. This could take an hour or a couple of days depending on your lender.
That’s all there is to it!
For any questions, concerns, or inquiries. Please don’t hesitate to contact us here!
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