If you're looking to buy a new automobile or get rid of your car payment, you might be interested in how to sell a financed car. Selling a financed automobile is different than selling a paid-off car, and some car sellers don't make any money off of the deal. Yet, if you're hoping to purchase a new car, selling the vehicle yourself is often better than trading in the car.
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Things you need
- Bill of sale
- Classified ad
- Kelley Blue Book
Contact your creditor. Call your auto lender and ask for your pay-off balance. In order to sell a financed car, you'll need to acquire enough cash to pay off your current loan balance. Knowing the pay-off balance can help you determine the asking price.
Determine your vehicle's worth. After learning your pay-off balance, check Kelley's Blue Book to find out how much your vehicle is worth. If your car is worth more than your loan balance, you can sell the car for more than you owe and make a profit.
Prepare the automobile. To receive your asking price, prepare to sell the automobile by cleaning the interior and exterior and making minor repairs. Order a vehicle history report from Carfax (see Resources) and show this information to potential buyers.
Place classified ads. Attract potential buyers by placing ads in local newspapers or circulars. Include detailed information about the vehicle such as the make, model, year and asking price. If you have an assumable auto loan, mention this in the ad.
Obtain a Bill of Sale. Download a Bill of Sale form from the DMV's official website (see Resources). This form is necessary to complete and legalise the sale. Without this form, it's impossible to transfer ownership of the car. After the buyer presents a check, both the seller and the buyer sign the Bill of Sale. Make a copy for your records and give the buyer the original copy.
Pay off the vehicle loan. Cash the buyer's check and use this money to pay off your auto lender. The lender will send you the vehicle title and a letter stating that the debt has been paid.
Sign over the title to the new owner. After receiving the title from your auto lender in the mail, sign over the title to the new car owner.
Tips and warnings
- If you have a local auto lender, complete the transaction at the bank or credit union. The car buyer presents the check in person, and the bank transfers the title on the spot.
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