Selling a Car You Still Owe Money On

Thinking of Selling Your Car?

There are a lot of reasons to consider trading or selling a car you still owe money on. You might need to move up in size, or down in monthly payment.

Whatever your reasons for wanting to sell your car that still has a loan, the good news is that it's easier than you might think!

Read on below to find out how you can easily sell or trade in your vehicle, even if you still owe money on the car loan.

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How to Trade in Your Vehicle, Even if You Still Owe Money

One thing we are seeing a lot of recently is car owners who want to get out of their current loan. The monthly payments are too high for their current budget, or the interest rate is too high, or maybe the vehicle just doesn't fit their needs anymore. Whatever the reason, some Ohio car owners sometimes feel trapped in a loan they don't want anymore.

Now, if you tried to sell the car on the private market, you wouldn't be able to until the loan was paid off. If the car sells for more than the loan amount, that's no problem. But it is a problem if you owe more than the car is worth.

This is called having negative equity, or being "underwater" on your loan. You would have to come up with the remaining cash to complete the sale. That's where an Ohio car dealership like Evans Dealer Group can help.

Normally, when you trade in a vehicle, the dealer would pay off the remaining balance and use the remaining value of the vehicle as a down payment. Or, you could receive the difference in cash. But when you trade in a vehicle with negative equity, the dealership won't be able to pay off the entire loan balance. But don't worry, Ohio drivers have a couple options in this situation.

A popular option for our customers who need to get out from under an expensive car loan, is to roll the remaining balance of their loan into a new vehicle. Say you owe $2,000 more than your vehicle is worth. Your trade will leave those $2,000 to be added to your new car loan.

While that will make the new loan more expensive, it will be spread out over the term of the loan. If the new or used car you buy is cheaper than the one you are getting rid of, or if the interest is lower, your monthly payments will come down.

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How to Sell Your Vehicle With an Existing Loan

But what if you don't want to trade in? As mentioned above, you could try to sell on the private market. But we all know that comes with time, dealing with lowball offers, and the insecurity of giving your keys to a stranger.

Not all Dayton, OH car owners realize that they can easily sell their car to a dealership. And many dealers are actually offering more than KBB market value for used cars.

That means that even if you owe a bit more than KBB tells you your car is worth, visiting Evans Dealer Group could end up paying your loan and letting you walk away with your check in hand.

If you have a vehicle you've been thinking of selling, get a quote from the Evans Dealer Group, and get the most for your vehicle.
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