Selling a car under finance can get tricky. You need to time things right and make sure that you can clear the secured debt on your vehicle to sell it.
Ask your lender
First things first, talk to your lender. You’ll need a number of details before you can be sure that selling is even a possibility. The main thing that you need to know is how much the payout value of your loan is. Because to sell the car, you’ll need to clear that debt at the same time (for secured loans).
The Payout figure
With this payout figure, you now know the minimum that you’ll need to get for your vehicle. If the value of your vehicle is lower than the payout figure, there’s a good chance that you’ll need to either cover the difference out of your own pocket, or refinance this debt by other means.
Timing the Sale with your Finance
Timing is tricky when selling a financed vehicle. Because interest on your loan is calculated daily, it’s important that your payout figure is correct based on the day of sale and, ultimately the day you pay it out.
Selling to a dealer or buying house
Selling to a business like a car dealership or buying house has many benefits. Quite often these businesses offer services that take the hassle out of paperwork and the timing as mentioned earlier. Many buying houses will even manage the paperwork to ensure that the payout and change of ownership are done correctly and efficiently.