How To Sell Your Car With Negative Equity

How To Sell Your Car With Negative Equity – How to flip a car without losing thousands of dollars can be difficult. If you’re looking to offset negative equity in your car, you’ve come to the right place.

Before, I had a very bad habit of trading cars with negative equity, losing thousands every time. I actually financed 10 cars in 10 years.

How To Sell Your Car With Negative Equity

What is the definition of insanity? Doing the same thing over and over and expecting a different result? Yes, it’s me.

Car Market Trade In Values & Positive Equity

I’m sure many of you can relate. The truth is we’ve all made stupid financial mistakes, but this one made me pay closer attention.

My husband and I bought a new car years ago and settled shortly after, after financing the $48,000 and $733 monthly minimum payments, we were done.

We were tired of paying the same amount as a car. We already knew our credit score so we joined our credit union.

We sat down with the banker and explained our situation. to increase the NADA value of my car so we would know exactly how long we were “in the hole”.

How To Sell A Car With A Lien

As a former banker, I know that NADA is how banks and credit unions determine car loan amounts. They don’t use Kelley’s Blue Book either.

KBB is rubbish in my opinion. This is not an accurate review of a vehicle. If banks and credit unions used KBB,  I might feel differently about it, but I don’t.

Car dealers tend to use KBB to their advantage when offering trade-in values ​​for your vehicle. So let’s say you go into your bank. You talk to the banker and find out that you are $5,000 short.

If your local bank won’t work with you, try Lending Tree. Their interest rates are low, depending on the loan, but you can click here to see if they are a viable option.

How Does Trade In Works? I Still Have 25k Loan On My 38k Mileage 2015 Wrx Premium And Want To Trade For Sti Worth 30k. I Wanna Know How Much Would I Still

Whatever you do…don’t give credit to the agent. You lose all power when they know your entire financial situation.

Now you know what your car is worth and you have decided that you owe $5,000 more than you could sell your car for. If you have looked at the vehicles and have an idea of ​​what you want, talk to them about it at that time.

Let’s say you find a 2009 Buick Enclave and it’s priced at $12,000 with 90,000 miles. They can enter the vehicle’s specifications on the NADA website and give you the retail value of the vehicle. Banks or credit unions sometimes lend up to 125% of the retail value.

It’s good to know about the future because if you’re in trouble, sometimes you can tie up some of that negative equity. But I always recommend gap insurance in that case…always.

Help Me Sell My Car When I Am Upside Down On The Loan

Check with your insurer and lender to see if they offer gap insurance that covers vehicle replacement. Not all vacuum cleaners are created equal, but it’s always worth comparing apples to apples and ensures you’re not overpaying for the product.

Car dealers tend to make most of their money selling life and disability insurance, and they mark up prices (especially on used cars).

You need to know your credit score before you start. You can find your FICO score here. So you talk to your bank to consider a number of options. Carmax is the next place I would go after talking to your bank once you know how much you will have to pay.

They will give you an appraisal of the car and Carmax will offer to buy your car for a certain amount of money.

Car Finance: Can You Trade Or Sell Your Car With Finance Owning?

That’s b.s. That’s no shopping. It takes them about 45 minutes to evaluate your car and you can walk out of there with a piece of paper saying they will buy your car for X amount of dollars within 7 days.

So you want to make sure you are in the final stages of the decision making process before you do this. But take that piece of paper…fold it, put it in your pocket and now you’re at the car dealership looking at a car. And you don’t want to give too much information about what you’re trying to do.

Go to the dealer and ask to test drive a particular vehicle. They will ask if you have a car to trade. Don’t tell them you’re still trading.

Don’t lie to them, just say, “You know what? I’m not sure what we’re going to do.” So come in, take a test drive. See how you like it. And make sure you get pre-approved from the bank too, but the less the car dealer knows about your finances, the better. Don’t share your plan.

How To Sell A Financed Car That Is Not Paid Off

Knowing your credit score will help you get the best rate. You can then sit down with them and explain that you want to set a price for the car. Try to negotiate the purchase price of the car without including your trade-in beforehand.

Car dealers are going to hate me for this, but it’s what we have to do. We need to protect ourselves as consumers.

See if they will negotiate a price for you and then if they are really adamant about trading in your car or if you feel weird about not telling them, let them know.

Also, let them know you got an appraisal at CarMax but are waiting to hear what their offer will be. Don’t rush to share offers from Carmax.

How Much Equity Should I Have In My Car Before I Sell?

You will receive an offer. They will write down some numbers and ask you to sign a commitment to buy the car. They may ask you to send the letter first.

Don’t do this. Ask if you can try driving at night while you think about it. Take the car and drive it to a dealership that competes with that car.

Contact the other seller’s car and tell them you are looking at this car, but do they have any similar cars? And sit down and go through the same process with another agent.

If you have to work at several different dealerships that day, do it and then take the car back to travel between dealerships. I know it seems like a lot of work, but I can promise you that you will get a better deal.

Negative Equity Car Finance & Car Loans

I might have gotten $500 more than what Carmax offered me, but the Honda dealer I bought the car from (new) offered $2000 less than Carmax and said, “Oh! We want your car!”

Because we bought it brand new at that dealership. It was 2 years old and well maintained, so they were able to take it as a certified car for about $4000 or $5000 more than they offered me.

I hope these tips have helped you understand a little about how to sell your car upside down. Of course, you will need some money.

I would never recommend using a credit card to offset negative equity…not even a 0% credit card, because…it’s not a good idea.

How To Sell A Car You Haven’t Paid Off Yet

You can tell yourself that you will pay off the balance during the promotion period, but that is too risky. Unsecured loans are difficult to get if you don’t have A+ credit, and the interest rates on these types of loans are often very high because of the risk.

There are many ways to make extra money from home by getting another job or by taking up a hustle. These are just a few ideas.

If you’re thinking about selling a flip car but are worried about finding a reliable vehicle that’s big enough for your family’s needs, here’s a list of third-row options for larger families. You can also look for AWD options if you live in a snowy area.

All are mid-sized SUVs with available third-row seating. We have a Buick Enclave and love it! It’s about 9 years old but has leather upholstery, heated seats, backup camera, Sirius XM radio and AWD, meets my family’s needs for only $10,000. If you can find a good used car with a lifetime warranty at a dealership (at no extra cost), that’s exactly what you want for your Dave.

How To Sell A Car With Negative Equity

So, in short: talk to your bank about your options. Come to Carmax. Get your review. Use your review as leverage and keep that bit of information as fuel for other dealers so you can get the best deal when trading in a more expensive vehicle.

Let me know if you have any questions or comments! I hope this helps you understand a little more

Life is a collection of memories and experiences. There are ups and downs. I am so grateful for God’s grace and

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