How to Sell a Car That Still Has Payments

Selling an automobile to someone else is harder than just trading it in. All marketing has to be done by the seller, the car must be sparkling clean to get the best price. The seller has to put ads in newspapers and online, price the car properly and then be prepared to bargain with the seller who really wants the car for as close to free as he can get it. If you still have car payments to make, selling the car becomes more difficult because you have to make sure you get enough money to pay off the balance owing. let's look at all the points to consider when selling a car that still has payments.

Instructions

1. Know exactly how much you owe on the car. You can get this information from the credit agency or bank to whom you owe the money. Usually, just a phone call will yield what you want. Even more often, it will be an automated phone call and you will speak with no one. Get a pay off balance. This will mean speaking with a person, but once you get to that person, just ask for a pay off balance. That is different than the balance owed because future interest is not being factored in. If you can, pay off the balance now. If you must wait for the car to sell before you have the money to pay it off, proceed anyway.

2. Price the car for sale. Now that you know what you owe, you can get a fell for what the price should be. Check online at some of the values given for your particular make and model car. See resources below to get prices.

3. Start with an asking price that will cover your outstanding balance. If your car is worth more than that, ask for more.

4. Detail the car. Clean every nook and cranny. People buy cars because of what they look like, not on how they run. Polish the radio knobs, the door knobs, the floors, ceiling, seats and everything in between.

5. Put ads online and in your local newspaper. Wait for calls and show the car. When you find a buyer and come to an agreement, sign the papers to make the sale. Now pay off the balance you owe on the car. Do so immediately, so you can get a clear title on the car from the lending agency. They will send it to you. After you get that, you can transfer a clear title with no lien attached. Go with the new owner to a title transfer place near you. Be prepared to show them your car title, your registration, driver's license and proof of insurance. Sign the clear over to the new owner while the title transfer employee is watching so it can be notarized. Cancel your existing auto insurance and you have sold your car.

Resources

• Kelley Bluebook
• Nada used car guide