When you want to sell your car privately, you might worry about how to do it if you still owe money on the vehicle. However, there are ways to make the sale without paying off the car before listing it. When handled correctly, you can pay off the vehicle with the proceeds of the sale and make sure the new buyer gets the car with a "free and clear" title.
Vehicle Titles and Personal Safety Are Two of the Main Issues
There are some important considerations when you sell a vehicle that has a loan on it. It may take a little while before the title comes in, but there will be documentation to address that issue. In some states, the state DMV holds the car title until the vehicle is paid for. Because of that, it's not possible for the seller to give the buyer the title at the time of the sale. When going through an online site to sell a vehicle, there are failsafe procedures that allow buyers and sellers to clarify the transaction and make certain they're both getting the deal they expect.
Rather than meeting someone in a parking lot to have a test drive and exchange money along with the title, platforms like PrivateAuto allow everything to be conducted through the internet to reduce concerns over safety and make sure the transaction is completed smoothly. Regardless, if you have a car that still has a loan on it, focusing on how to privately sell a car with a loan is going to be an important part of making an easy sale to the right buyer.
Selling a Used Car With a Loan Balance
The payoff amount is one of the biggest things to look at when you're considering how to privately sell a car with a loan. That's because you need to get an amount for the vehicle that's at least the amount of your outstanding loan. That allows you to sell your car and transfer ownership while you still owe money on it, instead of having to trade in your car at a dealership towards a newer one in order to "sell" it.
Instead, when you know what your car is worth and can sell it on a site like PrivateAuto, you can pay off the total amount of the loan balance with the sale proceeds and sign the title over to the buyer as soon as the car's lien is released. This won't do any harm to your credit score, and selling to a private party can also give you the opportunity to get more money for your vehicle.
You Don't Have to Trade Your Car In
If you're nervous at all about how to privately sell a car with a loan, you can find the information you need by working with a quality site. It's important to recognize that you have to pay off the loan when selling to a private buyer. You can sell the vehicle, but you can't transfer its ownership without a clear title. If you have negative equity (meaning you owe more on the car than it's worth) you may have to pay some money out of pocket in order to pay off the car's loan.
After paying off the loan, you can get free of the car by getting the title and transferring it to the buyer. A loan is a financial product, and seeing it as a means to an end is often the best way to look at it. Paying off your loan early by selling the car makes little difference to the company that loaned you the money, so long as they receive the full amount due. Keep in mind that you can't sell the car without paying off the loan, so getting some positive equity in the car and having access to the car title by paying off the loan are your primary goals.
What Should You Look for When Completing the Sale?
When you complete a car sale that has an auto loan you need to payoff, you'll want to make sure the buyer understands that. Many buyers don't want to pay for a used car, only to be told that they can't have the car or the title until the seller's loan clears. If they know about that in advance, though, they can make an informed decision about whether they still want to buy the vehicle. When buying though an online site like PrivateAuto, buyers and sellers can also feel comfortable that their transaction is safe.
Anyone who's wondering how to privately sell a car with a loan should make sure they're working with a site they can trust. Having easy payment options for the buyer and being able to interact with potential buyers without providing personal information are enormous benefits of using a trusted site to buy and sell vehicles privately. It's also a good way to tell if the buyer is serious about the purchase, and for you to show the buyer the vehicle is yours, even if there's a loan on it. Buyers feel safer when they can work with sellers that way, and it makes it easier to complete the transaction faster and more efficiently, too.
Make Sure You Complete All Paperwork Correctly
One of the biggest perks of using an online site you can trust to privately sell a car with a loan on it is the way you and the buyer can interact safely and effectively to get the paperwork completed properly. Not everyone knows how to fill out the paperwork when they sell a car, and having help to do it correctly can really make the difference.
PrivateAuto enables you to sign all documents electronically and even offers resources with tips and advice for buying or selling a used car privately in your state. All of that means an easier transfer and greater peace of mind for you and your buyer.
Where Can You Sell Your Used Car?
When you need to privately sell a car with a loan on it, you can use PrivateAuto to help you find a buyer. It's easy and convenient to sell your vehicle for the best possible price. Communicating with buyers is simple and you don't have to give out your personal information to do it. You can collect all the signatures online, too, which completes the sale with ease. Get started selling your used car at PrivateAuto today.