The process of selling your second-hand vehicle is always complicated, no matter what car selling option you choose – private, trade-in or an online car selling platform. But trying to sell a car that is financed raises intimidation levels.
Emigrating, upsizing, downsizing, or a financial crisis – the reasons to say goodbye to your trusted wheels are varied. And selling a car that is still financed is probably the reality you are facing as there is only a small percentage of South Africans who have paid off their cars. So you are in good company.
Here’s the big question: How do you sell a car that is not yet paid off and still get the best cash price to cover what you still owe?
Let’s relieve some of the stress by highlighting 4 questions you should ask when choosing to sell a vehicle that you still owe money on.
#1 “Should I sell my car privately?”
Even if your car is fully paid off, there are legitimate risks & time-consuming complications associated with going the private route. But when you are trying to sell a car that is financed, this is probably not the best option. Private buyers will probably run a mile when they discover that you are selling a car that is financed. The logistics are just too overwhelming. It gets even more complex as your lender holds the registration certificate, not you. So, save yourself a paperwork nightmare and skip this option.
#2 “How much debt is still outstanding on my financed vehicle?”
When selling a car that is financed, the motivation is to sell it for a price that will at least cover the amount you still owe – that is a given. This step is pretty easy – all you need is a letter from your financial institution to determine the exact outstanding amount – now and in a month’s time. This step clarifies the minimum offer you can consider accepting from a buyer.
#3 “Am I able to settle my debt before selling?”
Paying off what you owe before selling your car is definitely first prize, but is probably not a viable option. So determining the value of your car, by doing some due diligence research, is vital. This allows you to strategize and narrow down the best car selling options so that any outstanding balance on your financed vehicle will be covered. You really don’t want to sit with more debt after your car is sold.
#4 “What are my best car selling options?”
We probably all agree that selling a financed car privately is off the table. That leaves you with the trade-in option or one of the many online options.
- Trading in your car is often considered the simplest and most convenient solution. The dealer will sort out all the paperwork concerning the outstanding financing on your car. The downfall of this solution is you will only get one offer which is probably lower than you were expecting and your negotiating power is limited.
- The online car selling market has mushroomed over the last few years and is a legitimate option. But you will want to narrow down your options by assessing a platform’s reputation via online reviews. An online platform such as Weelee offers an innovative alternative; pre-approved and reputable dealers will bid on your car over a 24-hour period which pushes up the price and determines a higher market value for your car. You are likely to walk away with extra cash. The winning dealer will also deal with the paperwork and outstanding finance details. That is definitely a win-win scenario.
But at the end of the day, the choice is yours when selling a car that is financed. Do your homework, read online reviews and make sure you choose a car selling option that prioritises safety, puts you first and will get you the best cash deal.
