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Selling Cars With Payoffs.

Selling Cars With Payoffs.

One of the many questions people want to know when selling their car is, are you able to sell a car you owe money on? The simple answer is yes you can, however there are many different scenarios you may run into if you still owe money on your car when you go to sell it. The best case scenario when selling a car with a payoff would be if you were able to pay off the car faster than it depreciated. In this situation when you go to sell your car you'll be paid the equity you have in the vehicle and the buyer will pay the remaining balance for you after they take ownership. For example let's say you paid $10,000 for your car and two years later you decided to sell your car with a remaining balance of $1,000. Your car has a resale value of $8,000 the buyer pays you $7,000 and pays the remainder to the bank. Easy enough you get some money out of it and pay the car off faster than the duration of the loan. Unfortunately when it comes to vehicles that have a tendency to depreciate quickly you may find that you’ll actually end up having to pay someone to take your car because the resale value is lower than how much you still owe to the bank. This is commonly known in the industry as being buried or upside down in a car. This is more common than not because people don’t usually take into account how fast a car depreciates when they are filling out applications for loans. The longer the loan is the more time the car has to depreciate due to the age of the vehicle and how many miles a year the vehicle is being used. So while it is common practice to sell a car that you still owe money on there are a slew of factors that can make it difficult to sell a car with a payoff.    

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Wholesale Exotics INC

2901 W. Coast Hwy. Ste 217 Newport Beach, CA

Phone: (858) 251-9771 W. Coast Hwy. Ste 217, Newport Beach, CA 92626
33.6203997 -117.9275923