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How to sell a car under finance?

If you are planning to sell your used wheels, then there will be few questions which will strike your mind. Do you have the service records in order? Is your vehicle in a proper condition? But above all, do you legally own the car you drive? Because, if the car you drive is not legally yours, then it may become daunting for you to sell it. Who would love to buy a car without actually owning it? But in today’s era, most of the auto owners have their car financed through banks.

When it comes to selling a financed car you will have to juggle a few things. To make things easy for you, we have listed below some great tips on how to sell old wheels under finance.

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When to sell your vehicle

Don’t sell your car until it becomes necessary for you to do so. If you want to sell your financed wheels in order to buy a new one or because you just want to get rid of it. Then you will be troubling yourself, as used auto buyers usually think twice before buying a financed vehicle. Only think of selling your old wheels when it is really required. For instance, when your automobile’s repair charges goes beyond its actual worth. Or, you need to purchase a more spacious car due to family expansion.

Sell the vehicle personally

Selling your old wheels with a lien privately will require more effort on your part, and it won’t be profitable as well. But, you will be able to get good cash for financing cars which are not much older. Mostly just after the payment is done, buyers want the ownership papers in hand. But when there is a lien on the vehicle it become difficult for you to immediately provide them the title.

Here, take a look at few points you should consider before you sell your used car personally:

  • While listing your vehicle include all the details about the lien on the vehicle to avoid any misunderstanding between you and the buyers.
  • Inquire the department of transport about the paperwork you will need to organize in order to transfer the title.
  • Contact the financial institution which has financed your vehicle in order to know the requirements you will be required to fulfill in order to have the title released to the buyer. But, you will get to know that until the debt is unpaid, the title won’t get transferred.
  • However, the lienholder will allow you to transfer the liability of the payments. If the buyer is getting the automobile financed from a different lender, or is going to give you the money. Then you go directly to the lienholder to pay off the debt. Title can then be transferred from the financial institution to the buyer.
  • If the bank is located in your area, request the new party to make payment through cashiers check. This will help you in releasing the title faster.

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Trading with a dealer

Another easier option than the above is to sell your vehicle with the link to the dealer. Once you give complete authority of the old wheels to the dealership, the dealer will contact the lienholder directly and take the responsibility of the liability. The dealer will pay off the liability and pay you check for anything left over for you to keep. But get the documentation that your loan has been paid off, before leaving your car at the dealership.

Finally, Sell Your Car in Auckland with us no matter if it’s under finance or not.

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