Though a depreciating asset, a car is one of the most popular personal properties in the whole world, and this is largely due to its versatility and usefulness which is confirmed by the massive production from top automakers every single year. Cars are extremely important, and in comparison to the other modes of transportation, cars are generally the most feasible.
Selling one’s car can be due to some many reasons; upgrading to a better car, trying to get out of financial crisis, moving out of town or country; so many reasons and whatever yours is, it is worth knowing that selling your car might not be as difficult as you may have thought, or in the most likeliest possible way, as you may have heard.
Although, it is also wise to know that while it is easy to sell a car and still make some profit, selling a car with outstanding finance or bank loan can prove to be a bit difficult and might even turn to a legal case if you try to sell the vehicle to someone without informing them of the situation.
Having said that, here are the easiest ways to sell your car and still make some profit, even with outstanding finance or bank loan.
Selling your car privately
Although this method can be time-consuming, it is still your best shot when you’re looking to make enough profit on the car by selling it at a better price. This method is not so popular because people don’t have enough patience to wait these days but for those who can take pride in patiently waiting, the outcome is always favorable.
To sell your car privately, below are the things you need to do.
- Advertise the vehicle to potential buyers through social media platforms, online advertisement platforms or classifieds websites. You can also advertise among your friends, co-workers, and family.
- Give a proper description of your car when you’re advertising online and when you’re selling to someone you know, make sure they see the car physically and have a proper look at it.
- Attend to calls and emails from potential buyers.
- Be present when it’s time to view and test-drive the car.
- Arrange the safest payment method for yourself and be sure to hand over all important documents when you’re selling the car.
Selling to a car dealer
History has it that this is the easiest way of selling a car, although you won’t be getting the right value for your car. As at 2020, this is still the best option if you’re in a rush to raise funds or you’re hurriedly trying to get out of town. When you opt for this method, you’re sure to avoid having to go through the stress of attending to calls and emails of potential buyers if you place the ad online. The car dealer will give you what he feels is worth your car’s value which is not always the best price but it will save you the time and the stress.
Selling your car at auction
This has proved to also be one of the easiest ways of selling one’s car as one won’t have to go through the stress of the first two options, although the latter is a bit stress-free compared to the former.
Here are different auction options you can use to sell you car.
Live Auction: to sell your car at live auctions, you’ll need to pay an entry fee and the auction company might also charge up to 10% of the selling price as commission. If your car sells, the highest bidder will pay for it on the spot and the company will give you the money minus the agreed commission.
Online Auctions: this is also one of the easiest ways to sell your car. The process is very simple; advertise your car on the website with full description of your car, coupled with clear photos and then put the auction live and wait for people to bid as you filter through them. Since you’re in charge, you can just wait till you have something that really suits you and once you accept from the highest bidder, you can contact him and plan both the payment and delivery method. One good thing about this sale method is that you can do all these things from the comfort of your home, provided you have a good computer and internet connection. People mostly go with this method because it is stress-free and it is likely to bring you what you desire to get from the sale.
Selling your car with outstanding finance
To be very honest, this is one of the hardest ways to sell a way as the method is very complicated due to you obtaining the car via an auto finance or bank loan. As mentioned earlier, it is illegal to sell a car with outstanding finance to someone without informing them of the situation. A car has an outstanding finance if the owner obtained it with through auto finance or bank loan and is yet to fully complete the payment. Before you can legally sell a car with outstanding finance, there are two things you must do and they are;
- Duly inform the bank or finance company and plan the settlement fee with them.
- Pay off the settlement fee in full plus any other administration fee the company might be charging.
Once you do all that, you can use any of the above mentioned methods to sell your car with the hope to finding yourself the best deal.
Alternatively, if you don’t have money for the early settlement, the below is a feasible way out.
- Advertise the vehicle to potential cash buyers through social media platforms, online advertisement platforms or classifieds websites. You can also advertise among your friends, co-workers, and family.
- Give a proper description of your car when you’re advertising online and when you’re selling to someone you know, make sure they see the car physically and have a proper look at it. If you’re advertising online, do not at any point disclose any information about the car’s outstanding finance or loan, until you’ve found and met a serious and willing cash buyer – disclosing such information can significantly reduce your chances of finding a buyer.
- Attend to calls and emails from potential cash buyers.
- Be present when it’s time to view and test-drive the car.
- When you finally find a serious buyer who is ready and willing to buy the car in cash, let them know that the car was bought on finance/loan and still has some outstanding payments, but all they have to do is follow you to the bank or auto finance provider with the cash-in-hand to do an early settlement (after signing a buyer and seller agreement to ensure everything is on record). Depending on the country and provider, it could take hours to days for the outstanding finance to clear up from the system after the early settlement is made.
- After the early settlement has been made, and you both wait for the bank/finance provider to release the car, you may need to hand over the car, your car registration and of course the car key (and a copy other important documents you both agree on, such as driver’s license, passport, ID, etc) to the new owner as security so that they can prove to the authorities that the car is not stolen, just in case they get stopped on the way (it is only fair, after he/she trusted you enough to give you the full cash so you can pay for your early settlement and still make your profit).
- After the car is cleared from the outstanding finance or bank loan, you both meet again at the relevant authorities to register the car under the new owner’s name.
The above method is the only guaranteed way to sell and make profit from a car with outstanding finance. This method is well used in Dubai and the UAE in general, and should certainly work almost anywhere else irrespective of the geographical location.