can you sell a vehicle that is financed
Can You Sell or Trade in a Financed Vehicle?
Table of Contents
1. Can You Sell a Financed Vehicle?
Yes, you can sell a vehicle that is still financed. However, selling a financed vehicle means you’ll need to settle the remaining loan balance before the car can officially be transferred to the buyer. If the car’s value is higher than the loan balance, the extra money goes to you. If the loan balance is higher than the value of the car, you’ll need to pay the difference.
For a more detailed guide on selling a financed vehicle, check out our blog: How Do You Sell a Vehicle That is Financed?.
2. Can You Trade in a Financed Vehicle?
Yes, you can trade in a financed vehicle. When you trade in your vehicle at a dealership, the dealer will pay off your remaining loan balance on your behalf. Any equity left in the car will be applied to your new vehicle purchase. If you have negative equity (i.e., the loan balance is higher than the trade-in value), the dealership can roll that amount into your new car loan.
To learn more about vehicle trade-ins, read our blog: Vehicle Trade-In: What You Need to Know.
3. How to Sell or Trade in a Financed Vehicle
Here’s how the process of selling or trading in a financed vehicle works:
- Step 1: Check Your Loan Balance: Start by contacting your lender to get your loan balance and payoff amount. This will tell you how much you owe before you can transfer ownership.
- Step 2: Determine Your Car’s Value: Check the current market value of your vehicle using online resources or by getting an appraisal from a dealership. This helps you understand whether you have positive or negative equity.
- Step 3: Pay Off the Loan: When selling or trading in the vehicle, the loan must be paid off. If you sell to a private buyer, you’ll need to work with your lender to transfer the title. If you trade it in at a dealership, the dealer will handle the payoff process for you.
- Step 4: Transfer Ownership: Once the loan is settled, the ownership of the car can be officially transferred to the buyer or the dealership.
If you’re considering trading in your financed vehicle at **Cam Clark Ford Richmond**, visit our Sell Your Car page to learn more about how we can help with the process.
4. Frequently Asked Questions (FAQs)
Q: Can I sell a financed car privately?
A: Yes, you can sell a financed car privately. You’ll need to coordinate with your lender and the buyer to pay off the loan before transferring ownership. The lender typically holds the car title until the loan is paid in full.
Q: Can I trade in my financed car if I owe more than it’s worth?
A: Yes, you can still trade in your car if you owe more than its current value. This is called negative equity. The dealership can roll the remaining balance into your new car loan, but it will increase the total loan amount.
Q: Will a dealership pay off my loan if I trade in my car?
A: Yes, when you trade in a financed vehicle at a dealership, they will pay off the remaining loan balance on your behalf as part of the trade-in process.
5. Conclusion
Selling or trading in a financed vehicle is a common practice and can be done with a few simple steps. Whether you choose to sell the vehicle privately or trade it in at a dealership, it’s important to understand your loan balance, your car’s value, and the payoff process. At **Cam Clark Ford Richmond**, we’re here to make the process easy for you. Visit our Sell Your Car page for more information or reach out to us for help with your trade-in.