Selling a Car When You Still Owe Money in El Dorado, AR
Selling a Car When You Still Owe Money in El Dorado, AR
Selling your vehicle in order to buy another one? Congratulations on taking this next step toward the vehicle of your dreams! If you owe nothing on your vehicle, it makes for an easy process, but if there is still a remaining balance on your vehicle, the situation could get more complex. Lucky for you, your friends here at Karl Malone Chevrolet are here to walk you through what’s needed and get you into the Chevrolet model you want! Our team of helpful finance professionals is here for you and is available to answer any and all questions you might have about your situation. Keep reading to find out more about what happens when you sell your model if there is an outstanding balance on your loan.
Selling with Positive Equity
When it comes to car ownership, having positive equity is the ideal scenario. This happens when your vehicle is valued at more than the remaining loan balance that you still owe. For example, you have $30,000 in positive equity if your vehicle is worth $35,000 and you only owe $5,000 on it.
Going forward with the sale, we have two options. One: We can pay the whole amount to your lender who can then reimburse you for the difference. Or two: We can pay only your leftover balance to your lender and then your lender can reimburse the remainder to you. After you’ve made a decision about which route you want to take with the payment, you sign the title and give it to us.
Selling with Negative Equity
Having negative equity can make life complicated when trying to sell your vehicle. The opposite of positive equity, negative equity means you owe more money than the value of your car. If your vehicle is only worth $15,000 and you still owe $17,000 on your loan, then you’d have to pay your lender an additional $2,000 to get out of the loan. Lucky for you, you can still sell your model if it has negative equity. We’ll pay what your car is worth, and the only thing left for you to do is to pay the remaining balance to your lender (which is easier when you obtain a check from us for the rest of the value).
If you have any questions about selling your car, contact us online or give us a call! We can't wait to show you how high our offers can be. Karl Malone Chevrolet is located at 1830 West Hillsboro, El Dorado, AR 71730, serving the automotive needs of our neighbors from Magnolia, Camden, Warren and Monticello.