Can You Sell a Financed Car? Yes, Here’s the Process
Most vehicle owners believe that their financing needs to be completed before the vehicle can be sold. However, did you know that you can sell your financed car when you owe money on it? You can—as long as you follow the legal process. This involves transferring ownership and settling the remaining balance on your loan.
If you have this question on your mind: how do I sell my financed car? In this article, we describe the process.
How to Sell Cars with Active Payment Plans
1. Look for the Settlement Figure
Contact your finance provider and ask them for a quote. This is the money needed to pay off your outstanding balance.
2. Figure out Your Alternatives
- Dealership – A lot of dealerships buy financed vehicles and deal with the settlement them.
- Car-buying services – Sell My Car, and companies like them buy financed cars within their particular niches, making it fast and easy.
- Private sale (if permitted) – Certain lenders permit private sales, although you’ll need to satisfy the debt first before the lender allows you to change ownership.
3. Get in Touch with Your Finance Company
In the case of any HP finance or PCP finance, the lender must be made aware before any sales are conducted. Many expect to have the settlement amount as a prerequisite to signing over the ownership.
4. Dispose of the Vehicle and Deal with the Finance Payments
Once settled on a price, move the buyer’s payment toward the finance. If the selling price is greater than your settlement amount, the difference is yours.
5. Opt for Sale Methods that are safe and secure
Services, like Sell My Car, settle the finances quickly and do not defer payment, providing safe and swift selling.
6. Negative Equity Options to Consider
You have negative equity when the amount you are owed is greater than what your asset is worth. When this happens, you’ll need to either pay the difference out of pocket or finance it with a new loan.
What Happens if You Violate the Terms of Your Car Financing Contract While Selling The Car?
Selling a car with active loans is a criminal offence, especially if you do not inform your lender. Such actions can lead to dire legal repercussions. Before you do anything, it is best that you clear your debts. This will eliminate any chances of complications.
Pros of Selling Cars with Loans Using a Credible Service
- Quick settlement – There are no delays because the buyer pays off the loan immediately.
- Legal protection – There are no legal problems arising from outstanding payments such as loans.
- Fast and Easy – There are no drawn-out processes relevant to paperwork or waiting for buyers.
- Convenience – There is no time wastage because the professionals handle everything, including changing owners, shipping and paying loans.
Advice for Seamless Sales of Cars with Loans
- Explain loans in depth to potential buyers so there are no misunderstandings.
- Don’t just settle for the first offer. Always get multiple offers to compare values.
- Everyone wants to be scammed. Don’t allow yourself to be one of those people; only deal with reputable buyers.
- Documents, documents, documents. You can never be too ready, so ensure everything is organized.
Sell My Financed Car Smartly
No matter if you intend to sell your car that is already financed or have loans to pay, doing so has never been easier. Sell your car for the best prices while avoiding all inconveniences and stress today!
