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How to sell your car with negative equity?
If you are looking to sell a car with an outstanding loan balance, it could be very tricky and may even seem next to impossible. The vehicles with an outstanding loan have negative equity which can decrease the chances of trading it in for a new vehicle at a dealership. But regardless of this there are still some other great options to sell your vehicle with a negative equity:
- Pay extra cash to decrease the outstanding balance of the loan;
- Sell it to a private buyer for the balance of the loan;
- Contact a dealership which offer incentive for paying off the loan or rebate program;
- Finance the negative equity with a zero-percent credit card loan;
- Keep the vehicle and pay off the loan over time;
When you find out that you have an upside-down loan on your vehicle, you will obviously don’t want to keep it any longer. You will definitely want to replace it with a vehicle that is precisely shows the value that you have paid for it. As you owe more money on your vehicle than it’s actually worth so you’ll need to figure out a way to reduce that amount before you can shop for a new one.
Sell it to a third party
Even though you have a trade-in option but you can also find a private party that is interested in buying your vehicle. For this have a look at Craigslist or list your vehicle for sale on ebay. This will increase your chances of selling your vehicle quickly. However, the only problem with this option is that you may not be able to get a buyer that is willing to pay more money for your car than its actual worth.
If you are in this case, you can try some options like paying out-of-pocket in order to decrease the balance or financing the equity.
You can also finance negative equity with zero-percent credit card loan, if you don’t have enough or more money in savings that you can spend.
But it can put you in a risky situation and you will want to be definite whether or not you can pay off that credit card fast. However, if you get a price lower than the value of your automobile loan, then it may prove to be helpful for you. Remember to keep the time period of your new loan as short as possible.
Sell it to a Dealer
You can consider selling your car to a dealer, if you find one who is willing to either trade in your car or assume liability of the loan. But be sure to be extra mindful about how the dealer plans on proceeding. For this know how the deal is going to treat the negative equity.
Make sure the dealer gives you a concise and clear answer. Also, ensure to verify those terms when you sign the contract. Sometimes fraud dealers may assure you some terms and may not include them in the contract you will have to sign.
Whatever option you choose, make sure not to replace your car with a new one and pass the negative equity into a new loan for that one. Even though the idea of buying a new vehicle may seem to work out at first but after sometime the numbers will upset you and make the situation more badly.
In simple words, it will get you into an extremely large debt and you will need extra lending in order to avoid the increasing negative equity.
Finally, selling a scrap car with negative equity can give you a hard time and the only best solution to hire car breakers in your region and book a quick car removal service with them.