Download DIYinspect and get an offer to sell your car within 24 hours
Car loans are a quick and easy way for many to buy a good quality vehicle. However car loans can become tricky to navigate for those who need to upgrade or offload their vehicle. For many Australians, it can be daunting to figure out if and how you can sell your car under finance.
The first step is understanding if you’re eligible to sell your vehicle. To help steer you through the process, DIYinspect have put together our guide for selling a car that is financed.
Am I eligible to sell my financed car?
Car financing can be tricky to escape. While an auto loan may make purchasing a car easier at first, it restricts your options for selling in future. For those with a car loan, selling the vehicle is the final step of the process. The first step is starting proactive communication with your lender to avoid any future issues. Before you’re able to sell your vehicle, you’ll need to do these two things:
– Check your options
The first step, no matter your situation, is to check in with your lender. While your car is legally yours, it is not always yours to sell. To get the ball rolling on offloading your vehicle, call your lender to see the proper steps to take in order to sell. You will also need to check in with your lender to confirm the remaining balance of your loan.
– Check how much your car is worth
The next step is to investigate the potential worth of your car. This will make a big difference when weighing up if it’s the right time for you to sell.
How to sell my financed car
Once you’ve determined your eligibility, there are a few different options for selling a car that is financed. Here are three ways you can safely offload your car:
Pay off the loan before selling:
The simplest thing to do is to pay off the balance of your loan completely before you look at selling your car. This eliminates many potentially complicated steps between selling and settling. Unfortunately for some, paying off the loan first is simply not an option.
Use the sale to pay the loan:
This option is the most complicated way to sell a financed car. If you don’t have the cash to pay your loan prior to settling, you can get what’s known as a “payout” letter.” This is a document from your lender explaining how to complete the payment. You can then begin the payment process during or immediately after the sale to remove the outstanding balance. If you still owe money on your car, you won’t have a clear title at the time of sale. This is often off-putting to buyers who also do not want complications when purchasing a vehicle.
To sell with DIYinspect:
The easiest way to sell a car owing finance is to use DIYinspect services. DIYinspect accepts cars owing finance. Once an offer on a vehicle is accepted, as part of our paperwork, our team will only need a few minor things in order to finalise the sale. DIYinspect only requires a copy of your payout letter, this allows us to pay the financier directly. If there’s a balance after the remainder of your loan has been paid, you will be given the funds at the same time. DIYinspect is familiar with auto loans, and we are comfortable working with customers with a range of different needs and timelines. DIYinspect makes car selling simple. Even for owners with finance owing. Selling a car with a loan can be as simple as a click of a button.
If you’re interested in a simple selling process for your car under finance, get the ball rolling with DIYinspect.