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How to Sell a Car that isn't Paid off Yet

How to Sell a Car that isn't Paid off Yet

It’s not easy to sell a car when the auto loan hasn’t been paid off yet as you don’t have legal title to sell. However, if you sell your car to a dealership, we can help you settle the loan when we buy the car.


It involves a bit of paperwork and may take a couple of days, but it’s definitely possible.


Here’s how to do it.


Get your auto loan settlement figure


Before you do anything else, you should see how much is outstanding on the loan. Contact your lender and ask for a settlement amount.


That figure will be good for 28 days or until your next car payment, whichever is soonest. It will tell you exactly how much you’ll need to pay to settle.


Get a value for your car


Next, you need to know how much your car is worth. To make it worth selling, you’ll need to know whether it’s worth more than the settlement figure or less.


Use Carfax, Kelley Blue Book, Auto Trader, eBay, Craigslist and Kijiji to come up with a value for the car.


If it’s worth more, you’ll have money left over from the sale. If it’s worth less, you’ll need to top up what we pay for the car with cash of your own.


If you cannot afford to make that top up payment, you cannot sell a car that isn't paid off yet.


Clean the car


Clean cars sell better than dirty ones so spend a couple of hours cleaning yours and making it look as good as it can.


You don’t need to spend money other than a bottle of car shampoo and perhaps some alloy wheel cleaner. The rest is just time and effort.


Clean the car inside and out and make sure you have removed all personal items from the car.


Collect all the paperwork


Now get all your paperwork together. You’ll need your title and registration, service book and any receipts for work you had done on the car.


You’ll also need ID and any loan paperwork so we can properly identify you and work with your lender to settle the loan during the sale.


Get the car valued


Make an appointment to have your car appraised at our dealership. We’ll take the car for a quick test drive, check it over and give you a value. If you accept the offer, we’ll work with your lender to settle the loan.


Depending on the lender, this could take a couple of hours or a couple of days. Either way, we pay the lender what you owe them and pay the rest, if any, into your bank.


If you are in negative equity, you’ll need to top up the amount we’re paying to ensure the loan is settled in full. Without this, we cannot buy the car and you cannot legally sell it.


For any questions, concerns, or inquiries. Please don’t hesitate to contact us here!


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Categories: sell your car