Everyday people are getting rid of their cars that they owe money on. They are either selling them or trading them in.
Seems simple enough…
…But it is a little different getting rid of a car that you owe money on, compared to getting rid of a car that you own free and clear.
Here are some simple steps you need to take before selling your car or trading it into the dealer.
Contact your lien holder and find out what the balance is on the car. Once you know how much you owe, the next step is to find out what the car is worth. If the car is worth more than what you owe, it’s much simpler and easy to sell.
If you’re going to trade the vehicle in on a different car, the dealer will handle all the paperwork and clear the title by paying off your lien holder.
If You Owe More Than The Car Is Worth…
If you owe more than what the car is worth you can trade the car in for a cheaper car and have the difference applied to the new car. Keep in mind that if you do this, you still have to pay the difference off someday. It just doesn’t go away by itself.
Another option you have to get rid of a car, is to sell your car on consignment. You’ll have to check around to see what dealers have a consignment program, because not all dealers offer this service. Make sure you know what your costs are before signing your car over to the dealer. Some dealers work on a flat fee while others work on a percentage fee.
Save Yourself The Headaches…
Selling on consignment saves you all the headaches and troubles of having people come over to your home and haggling with you over the price. The dealer will handle all the paperwork, pay off your lien holder and make sure the money is good. You don’t have to worry about anything.
If you can’t find a dealer that offers a consignment program then check with the auto consultants in your area. Most consultants will have some type of consignment program.
You can always sell your car by yourself to get rid of a car. You can put it on Craigslist, AutoTrader or Cars. com to start with. Before you put it online be sure and have it detailed so the pictures look good and the car looks sharp when someone comes to see it. A well detailed car can bring you top dollar.
The last thing you want to do is give your car back to the lien holder if you can’t make the monthly payments. This may sound like the way to go and it’s easy, but a repossession will show up on your credit report and damage your credit for years to come.
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