If you fear that you won’t be able to keep up your car payments, you can try selling your car before you miss any loan payments and use the proceeds to pay off your car loan. Your goal is to sell it for more than your outstanding loan balance so you have some cash to buy a used vehicle – in the best case scenario.
Here’s a more realistic situation: You probably owe more on your vehicle than what it’s worth. Unless you can come up with the difference between what your car sells for and what you still owe on it, the lender won’t give you title to the vehicle, which means you can’t complete the sale.
Another option is to get someone to take over the payments on your car assuming that your loan agreement allows it and the lender Okays it. In this situation, the other person takes your car and starts making the loan payments.
The lender probably won’t remove you from the loan paperwork, so even though you no longer have the car, you are still liable for the loan. Even if a person takes over defaults on the loan, your credit history will also suffer. That’s why it’s very important to make sure you can trust the person who takes over your payments.
Selling your vehicle fast and for a good price:
You end up with more money in your pocket if you sell your car to an individual buyer rather than a used car dealer. Follow this advice to get your car sold quickly and for a good price:
- Price your car fairly. Research your car’s national market value and look around at ads for similar cars for sale, to make sure you set a fair price on your car.
- Take care of your inexpensive repairs before you put your car on the market. Be prepared to share your repair and maintenance records with potential buyers so that they know you have taken good care of the car.
- Clean your car inside and out before you show it to prospective buyers.
- Let your friends and relatives know that you’re selling your car, word of mouth advertising is definitely not overrated.
Advertise in your local newspaper and/or on the Web, a good website to advertise for free is www.gumtree.co.za. You can post a free ad with the car details as well as a photo of the car.