If you are looking to sell your car that still has finance on it, then take a look at the finance blogs online for some excellent advice on a wide variety of financial subjects, including cars. It is not quite as straightforward when selling a vehicle that still has finance on it, but that does not mean that you cannot still sell it.
If you are looking to sell your car and there is still finance owed on it, here is some advice to help you with the sale.
A Secured Loan
With most types of vehicle finance, the loan is secured against the car, so in the event of foreclosure, the car will be repossessed so that the finance company can recoup their money. When you sell a financed car, the issue is that if the finance is not cleared and paid off, the car is in danger of being repossessed. So, the person who bought the car may end up losing their money. As a buyer, you should always check if a car has finance outstanding on it before purchasing, and as a seller, this is vital information that you need to disclose.
What Is Your Equity?
When you are looking to set the sale price of your vehicle, you will also need to take into account how much money you still owe, as well as the overall value. Many websites offer valuations of your car by entering a few details online and arranging for someone to visit you. You may be able to add a little extra on if you can sell your car privately, but the price that you ask for is going to have to deduct the amount that is still outstanding on the finance. Many of the car buying companies will offer to buy cars with finance also, so it is an avenue that is worth investigating.
Honesty Is Key
Because of the implications of buying a car that still has finance attached, you will want to be honest to any potential buyer that you talk to. Being able to prove how much you have paid so far, as well as how much is still outstanding will go a long way to reassure potential buyers. If you speak to your finance company, they should be able to provide you will all of the required documentation if you do not have it available.
If you can also provide a full-service history along with details of any work that has been carried out to the vehicle, you should put the buyer’s mind at ease. Remember to not pressure any potential buyers as buying a car with finance attached is a big step. If you put too much pressure on them, you run the risk of them walking away from the deal.
As long as you ask for a realistic amount of money that takes into account any money owed, you have a good condition car with full history, and you are honest with people, there is no reason why you cannot sell your car quickly, and easily.