Automotive Journal

So – you want to sell your car and buy a new one, but you’ve still got a car loan outstanding on your vehicle? No problem. This is something lots of people experience, and there are various solutions out there. I’m going to run through some just now. It used to be that if you were in this situation your only option was to keep the car and keep making payments until the loan was cleared. Today though, there are dealers out there who will take over your loan payments when you buy a new car from them.

So how do you go about getting what your existing car is worth, and how do you sell a car that is subject to an existing loan? Number one, you need to get a figure from your loan company for the amount that is outstanding on your finance. Then, if you’ve got savings or other spare money that you can use to clear that amount before you sell the car, you’re in a strong position. With the loan cleared, you can sell the car however you choose.

This is not an option for most people, however, and if youare trying to get approved for another auto loan bad credit will prevent you from being able to do it while youare still under your first loan. If this is the situation youare in, you have options, albeit a little more complicated.

First of all, you can try to sell the car for the minimum amount you’d need to clear your can loan. However, this would mean taking payment from the buyer but not being able to give them clear title to the vehicle until you paid offer the loan on the car, and the loan company gives you title to the vehicle. A lot of buyers might not be willing to go through with this.

Your other option is to contact the loan company that youare currently financing your car with, and inquiring as to whether theyad agree to using an escrow service for the sale of the car. This way, when your buyer pays the money, it would go into an escrow account that the loan company would be able to access after the title has been released to the buyer.

Also, if you call up the finance company directly and ask them about the options for selling your car when it is still under a finance deal with them, they may well be able to help. They get this sort of enquiry quite a lot, so know the options – and even if they can’t help you directly, they can almost certainly direct you to someone who can help.

This might all seem a lot of hassle. If it does, your best option might be to look around for a new car at a dealership which offers you a way to get out of your current car finance. More and more dealerships are offering deals where new customers can trade in their current vehicle that is still under a loan agreement, and then some or all of the costs of that loan are added onto the finance deal on the new vehicle.

When you do this, you are still in control of your monthly loan payments, but you get that new car that you need! If you go down this route, be sure to check out your monthly payments using a car loan calculator. Remember that when you roll two loans together like this, it might make the monthly payments higher than you’d thought. It’s that simple though, so now when you need to change your car but you’re still paying your auto loan and you’re wondering what to do, you’ve got all these options to think about!

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