Selling a Car When You Still Owe Money
Selling a Car When You Still Owe Money
in El Dorado, AR
If you’re considering selling your current car, right now is a great time to do it! The market for used vehicles is booming, and you’re likely to get a great offer for your ride — especially if you sell it to us here at Karl Malone Ford. We’re always looking to add to our used car inventory, and you’re sure to be pleased when you see the offer we give you. Do you still owe money on your vehicle? You may think you have to wait to sell until your loan is paid off. However, that’s actually not true — you can still sell your vehicle, no matter whether you have positive or negative equity in it. Keep reading to learn about how we’ll handle buying your car if you still owe money on it.
Selling with Positive Equity
If you have positive equity, it means you still owe money on your car, but your car’s value is higher than your loan balance. You can find your equity by subtracting your loan balance from your car’s value. As an example, if you owe $5,000 and your model is worth $20,000, you have $15,000 in positive equity.
If this is the case for you, we will either pay the total amount for the vehicle to your lender and the lender will pay you the difference (after subtracting the loan amount), or we’ll pay the loan balance to the lender and make a separate payment to you. Once all the payment is taken care of, you and your lender will put your signatures on the title and give it to us. It’s an easy process!
Selling with Negative Equity
In contrast, you have negative equity when you owe more on your loan than your model is worth. For example, if you owe $20,000 and your model is worth $16,000, you’ll have to pay your lender $4,000 in order to sell. However, you can still sell with negative equity! We’ll pay you for your vehicle, and then you can use that money to pay off your lender. Since we’ll give you a great offer, this should be no problem at all, and you may even be left with some cash in hand.
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 Ford is located at 1730 West Hillsboro Street, El Dorado, AR 71730, serving the automotive needs of our neighbors from Magnolia, Smackover, Strong and Monticello.