How To Sell a Used Car with an Unpaid Loan
Are you still paying the loan on your Ford F-150? Are you unhappy with your automotive choice? Do not worry – you can still sell your used car, truck or SUV at The Car Depot. Birmingham-area drivers who have a vehicle with a current loan may not know how to sell a used car with an unpaid loan and we can help answer your questions at The Car Depot.
Step 1: Find Out How Much Your Car is Worth
The first question you should always ask when you decide to sell your vehicle is – how much is my car worth? Online options like Kelley Blue Book®, Edmunds, Carvana® and CarMax® will provide estimates for your vehicle – but The Car Depot provides a local option for drivers in the Birmingham area. Input your personal and vehicle information in the form on The Car Depot website to get a quick and accurate estimate that will meet or beat industry values.
Step 2: Find Out How Much You Owe on the Loan
The next step – contact your lender and find out how much you still owe on your auto loan. The payoff amount will include the balance on the loan and any additional fees and are usually valid for 10 days. Do not stop making payments until you sell the vehicle. In the event that you have overpaid on your car loan, you may be reimbursed. The payoff amount will help you determine your positive or negative equity. Make sure you contact your lender prior to the sale.
Step 3: Know Your Equity
When you decide to sell your used car, truck or SUV, it is important to understand equity. Equity is the difference between the value of the car and how much you still owe – which translates to positive or negative equity. Positive equity means that your car is worth more than the payoff amount and you will come out ahead. Negative equity means that you owe more on the unpaid loan than the value of your car, truck or SUV.
READ MORE: Do You Have to Pay Income Taxes When You Sell Your Car?
Do you still owe money on your car loan? Find out how to sell a used car with an unpaid loan with a quick step-by-step guide created by The Car Depot. Contact The Car Depot today to learn more about how to get the best price for your used car, truck or SUV in the Birmingham area!