Selling a Car When You Still Owe Money in El Dorado, AR
Selling a Car When You Still Owe Money in El Dorado, AR
It’s a seller’s market for used vehicles right now, so how can you capitalize on that? If you’re thinking about selling your current ride, be prepared to get a fantastic offer on your car, truck or SUV, especially if you trade it in here at Karl Malone Toyota of El Dorado. We would love to take your vehicle off your hands, and we’re confident you’ll appreciate our accurate appraisal of your car’s value. But what does selling your car entail when you still owe money on it? If you haven’t finished paying off your loan yet, can you still sell the car? Short answer: yes, you can sell your vehicle regardless of whether you have positive or negative equity on it. Keep reading to learn more!
Selling with Positive Equity
Positive equity means that you still owe money on your car, but the car’s value is worth more than your loan. Basically, if your model is worth $30,000 and you only owe $5,000, you have $25,000 in positive equity.
When you have positive equity in your vehicle, we’ll handle the sale in one of two ways. First, we could pay the amount to your lender and then let the lender pay the difference to you. Alternatively, we would pay your remaining balance to your lender and then make a separate payment to you. After the purchase is settled, you and your lender will sign the title and hand it over to us.
Selling with Negative Equity
Negative equity, however, means that you owe more on your vehicle than what it’s worth. For example, if your car is worth $15,000 and you owe $17,000 on your auto loan, you’ll pay your lender the $2,000 difference. The good news is that you can still sell your car with negative equity. We’ll just pay what the model is worth, and you’ll pay your lender, which can easily be done once we’ve purchased your vehicle from you.
If you have any questions about selling your car, contact us online or give us a call! We can't wait to show you how high our offers can be. Karl Malone Toyota of El Dorado is located at 1830 West Hillsboro, El Dorado, AR 71730, serving the automotive needs of our neighbors from Magnolia, Camden, Junction City and Crossett.