How to Sell a Car That Still Has Payments

Video Transcript

"It's not unusual to have someone have a balance owing on their trade in vehicles. I think the average American citizen gets the itch in between 30 and 36 months to want to trade for a new car. Most financing now a days is for either 6 or 7 years. What we'll do is we'll provide an appraisal on their vehicle, call and verify what they're payoff is, and in many instances you'll owe a little bit more than what your car is worth but with the generous rebates that we have today we can roll the negative equity into the purchase. The dealership will use the rebates to offset that negative equity and you leave with a new payment and you're carrying part of your old payment with you but you're in a brand new car with warranty coverage and you're in something new shiny, something that can put a smile on your face. We normally recommend that you contact the lender, let them know that you're trading in the vehicle. Because usually a payoff is made within 5 to 7 business days. And then if you're going to use that monthly payment money, use it as a down payment because every penny goes to the principle balance. If you make that payment on your regular payment schedule it's going to go to principle and interest and that interest isn't going to help you at all. Especially if you have a payment that's going to be due in the next couple of days and say if you've just made a payment, make sure the payment is reflected in the payoff quote that the bank provides and then work your numbers with the dealer and they'll write a payoff check to pay off your old loan and you drive away in a new car with a new loan."