If you currently owe more than the car is worth, it can be difficult to sell it. However, it isn't impossible. You still have the option of selling the car even if you are currently paying the loan to the bank, but you will need to work out the legal details with the lender and possibly make up the difference.
Figure Out How Much You Owe
The first thing you need to do is figure out exactly how much you still owe on the vehicle. If you don't have access to this information based on your own records, your lender can give you a balance. When you contact the lender, that is also a good time to ask about the paperwork process if you want to sell the vehicle while you still have a loan to be paid off. Now with this balance, you can compare it to the value of the vehicle, and see what the difference is. If you are able to sell the car for a good amount, hopefully it won't be too large of a difference.
Decide How to Sell the Car
You have a few different options for selling the car, just like you would if it was completely paid off. The first option is to sell it to a dealership. This is generally a good idea if it is in good condition and is a newer model. However, make sure you know the value of the vehicle before you approach a dealership. This lets you know if you are getting offered a fair price or not. The benefit of going to a dealership like Glenns Quality Cars is that they know how to handle the paperwork and title transfer when you still owe money on it. You might also be able to find a private buyer, though this can take a little more work. The bonus is that a private seller might be willing to give you more for the car than a dealership.
Get the Title Transferred
If you still owe money on the vehicle, you might not have access to the title, so the purchase needs to go through the lender. When a buyer agrees to purchase the vehicle, let them know you need to go through the lender. They will issue payment for the car, which you bring to the lender to have processed. You will then need to pay the difference if you sold it for less than what you owe. Once you do this, the bank should give you the title since the loan is now paid off, which you can sign over to the buyer.Share