General Question

wodowd's avatar

How do you sell your car if its financed?

Asked by wodowd (147points) January 11th, 2008

I am financing a newer car, and am considering selling it. What do i need to do in order to sell it?

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3 Answers

ccatron's avatar

most dealerships will buy it from you for the amount that its worth. whatever is leftover is called negative equity. that amount is then applied to your new car loan.

for example, let’s say you owe $15,000 on your current car loan. the dealership buys it from you for $12,000. they will then apply the $3000 to the new car that you buy. so, if you are looking for a car that’s $15,000, expect to get a loan for $18,000 on the new car (plus tags, taxes and title).

If you have a Carmax nearby, I would suggest going there. They will give you the best price for your car and they have the best deals on new and used cars….at least here in Tennessee they do. Also, with them, you’re guaranteed to not be sold a lemon.

glial's avatar

Consider trading it in? If you sell it yourself you won’t get any tax credit toward you new car.

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