Car Question

Discussion in 'Credit Talk' started by Cid62, Jun 19, 2001.

  1. Cid62

    Cid62 Member

    Hi folks, haven't been on the board for a while...was in the midst of moving. (still renting, not buying...)

    I have a question concerning a car that I currently have a loan on through Household Auto Finance. This may be somewhat of a silly question, but I've never been in this situation before.

    Is it possible to sell a car that has not been fully paid for yet? Would it be better to attempt to trade it in at a dealership? I am attempting to get a light truck instead of the sedan I have now.

    Thanks for ANY advice,
  2. DaveLV

    DaveLV Well-Known Member

    You can sell it, but you'd need to pay off the loan to get the finance company to release its lien and give you the title. It is illegal to "sell" the car without transferring the title.
  3. Cid62

    Cid62 Member


    Thanks for your reply!

    Yeah, that's the part I was wondering about. I may just go the car dealer route, but I'm afraid of the BIG RIPOFF. However, I really need a truck....

  4. DaveLV

    DaveLV Well-Known Member

    You can still sell it private party and use the sale proceeds to pay the loan. A lot of times though it's possible to get upside-down on a car loan and not be able to sell it for the payoff on the loan. A car dealer will usually pay the loan for you in a case like this and add the extra amount to your new loan.
  5. marci

    marci Well-Known Member

    I have the same problem re sub-prime financing of a car, but mine is a bit tougher since I have nearly $2000 in negative equity. I get angry every time I write my car note check. :-(

    You could trade the car in at a dealer and they will add the negative equity to your new loan. But unless you pay WAY more than the minimum payment - you'll be in the same situation (i.e more neg. equity) until the car is paid off fully. I'd just as well wait and pay my current car off fully b/f lengthening the time of my loan.

    You could try to sell the car on the street for your current loan amount, but b/c the car market is saturated now it may be hard to sell it for the full amount if the neg. equity is substantially higher than KBB value.

    Lastly, you could "unsecure" the negative equity onto a credit card and then sell the car on the street for a small profit over what it's worth. Of course, you'd still have to pay the credit card, but if you can do a BT deal for the life of the BT - you'll save tons in interest on the neg. equity and - if your credit is good - get a new car at a decent interest rate.

    I'm tending toward the last. If I ever do get a single digit BT for the life of the transfer offer - I'll probably unsecure my neg. equity.

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