How to Sell your Car if it has Outstanding Finance?

There are certain aspects of the time when you decide to sell your car that makes it more difficult to carry it out; bad condition of your car with missing wheels and rust, missing keys, emotional attachment and most importantly if you don’t own it yourself. 

If your car is financed through a bank or any financial company to which you owe money against your car and this process has lingered on for quite a few years, during which you decide to sell your car, then it definitely can make things complicated. In such situations, it’s not just two parties that needs to be satisfied but three, and one of which might not be present at the time of negotiation. 

But with just a bit of preparing, honesty and a positive attitude nothing is impossible to handle. Therefore, we will highlight situation when a financed car be sold, how and to whom you can sell your car to:

Sell your Car if its Unencumbered

Most of the financed cars are bought against a secured load. This means that the financier makes the car as al security, which can be used in case the borrower isn’t able fulfil all repayments.

So unencumbered means that your car may not have money owing against it even if you borrowed money against it.

Which Finance should you use?

If you want to buy a car with financing and you decide to sell it in a few years, then it’s advisable that you take a personal loan or buy it on credit than through a secured loan. This way even if you sell your car, you will be liable for it, not the car. At the time of sale, no third party is involved. 

Now comes the question, which is the most reliable and transparent medium to sell your financed car to without taking up too much hassle.

Whom to sell your financed Car?

Majorly there are two medium who can accept to buy your financed car. These include car dealers and car buying companies. Following is an account of how each of them works in such a situation:

Sell to Car Dealers

Even though you need to do some research but there are certain car dealers to whom you can sellany car even if it’s financed. These car dealers can buy your car by deducting the amount of outstanding loan that is owed on the used car. Nevertheless, they can charge you a fee for buying such a car. This is because car dealers are more concerned about how much profit they can earn. 

Sell to Car Buying Companies

To these companies, you can sell your car for free! You don’t need to pay for a car valuation or any extra charge of buying a financed car. They only require a letter detailing a current settlement figure from the finance company. After buying the financed car, they will be paying off the outstanding amount themselves and deduct the amount from the amount they pay you. 

These are some of the important points to consider before you decide to sell your car that contains an outstanding finance.