Selling a car that was obtained through an auto loan program and with the loan repayment still hanging around can be difficult. In theoretical terms, selling a loaned car would be difficult, but there are still few ways through which one would be able to sell his or her financed car. This article would explain about all the steps that a person might have to follow in order to sell a financed car.
Contact the lender
There is no hiding in selling a financed car. Borrowers would not be able to sell their car without talking to their lenders. Car owners should not be hesitant or beat around the bush. They should be direct and should ask the lender how to sell their loaned car. Most of the unsecured personal loans lenders would have answers ready for this particular question. They would provide a detailed list of steps that have to be followed by the person in order to sell their financed car.
Financing left in the old car
The person should be aware of the amount of money owed by him or her towards the car loan program. It is always a better idea to close the loan balance and sell the car after that. This would be the best solution since it would not create any problems in the future. Borrowers can contact their lenders and ask them about the procedure for closing the loan and also the amount of money that must be paid in order to pay off the loan here.
Lenders would provide this information and would also inform them about the time at which they need to make the payment. This would help the person manage his or her finances in a better manner. One important thing to note here is that the payoff amount pertaining to loan closing would not remain the same and it would change over time and the person should be aware of these changes by talking to the lender about the changes that might arise. This is an important factor because the person would not be sure about when the car would be sold.
Obtaining the title
Cars would be sold much easily if the seller possesses a title. Possession of a title would make the buyer confident in buying the car. The person should contact both his or her lender and their respective state local DMV and obtain a title. Obtaining a title would also take some time and the time frame should also be noted by the person.
Advice given by financial consultants to people is not to sell the car when the loan is yet to be paid off. An alternative option for those who want to sell their financed auto is by going for car trading. There are a lot of agencies who perform such a service. Downside of car trading is that the car owner would not be able to obtain the reasonable market value of the car. There is every chance of the situation getting out of control when the debt is transferred into a new car.