Selling A Vehicle That Still Has Most Of The Money Owed

About a year and a half ago I had purchased my first vehicle when I had steady work, and was making more than enough to handle the payments. A couple of months later I got laid off.

Fortunately the payments aren't absolutely terrible, but they are certainly still a major dent in our monthly bills. I've since paid off about 10k off the purchased price, but still owe a good 40k left.

I'm not too familiar with the sales of vehicles in general, and I was wondering if anyone here knew of some good options to either reduce our monthly payments, or if there was a way to sell it without still being in debt for it?

The only personal moderation I've done to the vehicle was adding a performance chip (which I can easily revert back to the previous factor settings), everything else was dealer installed. There's no damage to the vehicle at all, minus a crack in the windshield, and there's roughly 22,000 km on the vehicle now, and all warranties are still valid.

Sorry to hear of your hardship.

As for the car, there are sites where people take over leases/payments.

Good luck

originally posted by: mikeone718
Sorry to hear of your hardship.

As for the car, there are sites where people take over leases/payments.

Good luck

Do you know any names for them (preferably in Canada) or what I would search on google for that?

a reply to: Ghost147

I'm pretty certain that I can't give an actual site on here....just search, "take over my payments" .

originally posted by: mikeone718
a reply to: Ghost147

I'm pretty certain that I can't give an actual site on here....just search, "take over my payments" .

Alright, thanks for the tip

Just sell it and pay off the loan. You can pick up a cheap car temporarily till you get on your feet again. Check with relatives or good friends that are getting rid of an older car.

originally posted by: rickymouse
Just sell it and pay off the loan. You can pick up a cheap car temporarily till you get on your feet again. Check with relatives or good friends that are getting rid of an older car.

I was under the impression that it's difficult to sell a vehicle that still owes money on it?

And wouldn't the sales price determine if I could pay off the loan? If the vehicle sells for less than what I owe, then I would be without a vehicle and still making payments, wouldn't I?

First you need to see how much underwater you are on the car. If you owe $40k and car is only worth $30k which is probably the case, you have a deficit of $10k.

The only way to sell the car is if you can dig into your pocket and payoff the $10k. You can't sell the car to someone else with their being a $10k balance.

If you go to a car dealer, you can probably trade it in towards a cheaper car, but the $10k balance is going to be rolled into the new loan. As such, you might be able to buy a $20k car on trade and get away with no payments. They pay you $30k for car which is then used to buy a $20k car. They then give you a small loan for $10k which is really paying off the balance you owe on your current car.

In a nut shell, you have to add $10k to whatever cheaper car you want to buy to make up the deficit on the old car.

The only other option is you can mail the keys back on the car and let them repossess it. However, if you do that your credit will be shot.

a reply to: Ghost147

you can go to KBB.com and find out the value of the vehicle. Once you know that, you can decide how you want to move ahead. In your current situation, a bankruptcy isn't out of the question, but you need to talk to a lawyer to be sure it would be the right step.

a reply to: Ghost147

Yes..it called having a clear title with no $$ still owed. Otherwise the lender with the $$ owed still owns more of the car than you do. Better see
..

originally posted by: Ghost147

originally posted by: rickymouse
Just sell it and pay off the loan. You can pick up a cheap car temporarily till you get on your feet again. Check with relatives or good friends that are getting rid of an older car.

I was under the impression that it's difficult to sell a vehicle that still owes money on it?

And wouldn't the sales price determine if I could pay off the loan? If the vehicle sells for less than what I owe, then I would be without a vehicle and still making payments, wouldn't I?

kbb.com or NADA will give you a value of what it is worth in your area. Compare that against what you owe. You can pay the vehicle off with what you get from the sale as long as you go see the bank first to set it up so you can free up the title. The bank gives you a release letter to give with the title..

a reply to: Ghost147

Unfortunately, the proceeds from your sale will probably not be enough to cover the balance on the car.

Youll have to explain to the potential buyer that youll need his proceeds to help pay off the remaining loan so you can secure the title. Some people feel a bit uneasy about this.

If you message me the car's details (year make model and trim level LX EX DX etc.), I can tell you its current market value.

Here is the lease site: www.swapalease.com...

Also goto the car's forums (every car has a forum) and post it for sale/lease in their for sale section.

All very helpful responses. Thank you all very much.

a reply to: Ghost147
Bloody hell Ghost, you go from bad to worse. A couple of days ago you posted that you were going to lose your house because you couldn't afford the payments. I think some-one aught to seriously sit you down and explain the facts of financial life cos obviously you have no idea.
For a start you're struggling paying for your house, that tells me that you over-stretched your financial potencial when buying it. You did not take in the worse case scenarios like losing your job or taking a pay cut. But what takes the biscuit you go and buy a car for 50k (no matter that you had a job at the time). 50k? What was it a roller? Let me guess, it had to be a new car. Vanity, vanity.
No matter how you bought it on finance, you had to have signed a contract and I'll guarantee you 100% that the vehicle is not yours until you've paid the last payment. It will be owned by the finance company, so it will be illegal for you to sell it. Technically you should make final payment before you can sell it.

it also depends whether you took a loan out from the bank or whether you bought the car from the dealership on finance?
If it's the latter, the company that you make payments to are the people who "own" your car.
Get in touch with your finance company and ask them whether there is an option to return the car and pay a premium. sometimes it's a small amount to pay off the remaining interest.

Perhaps you can re-finance it and get the payments down. That would require a bit of cash up front, but maybe you can find a better interest rate which would lower the payments. You could also talk to them about re-financing for a longer period of time, which would lower the payment. You'd end up paying them more interest over time (which is why they are usually happy to do it), but wouldn't be chasing your tail every month. In a couple years if things have looked up for you, you could re-fi again for a shorter time and pay the vehicle off quicker.

If you want to sell it, find out what the actual "payoff amount" is. It's different than the amount you would actually owe or pay over time. It may be listed in your account on their website.

Good luck!

a reply to: raedar

Yeah an early settlement price from the finance company would take down the cost of the car, you could then if possible get a bank loan to cover the early settlement price. If you did that, you would then own the car and could then sell it on and use the money from the sale of the vehicle to pay off a chunk of the loan from the bank.

originally posted by: crayzeed
a reply to: Ghost147
Bloody hell Ghost, you go from bad to worse. A couple of days ago you posted that you were going to lose your house because you couldn't afford the payments. I think some-one aught to seriously sit you down and explain the facts of financial life cos obviously you have no idea.

This was mentioned in that topic, and I had absolutely no control over the oil industry collapsing in to a piling heap of dung, which just so happened to be immediately after I made a purchase, of which would have been entirely sustainable if I had had a job, even one that paid significantly less than the one I had in the oil industry.

originally posted by: crayzeed
a reply to: Ghost147
For a start you're struggling paying for your house, that tells me that you over-stretched your financial potencial when buying it.

I'm struggling to pay for it because I was laid off, I could perfectly afford the home if I even had 1/2 of what I made in my previous job.

originally posted by: crayzeed
a reply to: Ghost147
You did not take in the worse case scenarios like losing your job or taking a pay cut. But what takes the biscuit you go and buy a car for 50k (no matter that you had a job at the time). 50k? What was it a roller? Let me guess, it had to be a new car. Vanity, vanity.

Once again, I had 10's of thousands of dollars in savings at the time of purchasing it, and those savings would still exist even if I had a job that paid significantly less than what I was making before.

The only reason I am struggling at all is because I've had to use those savings over the past year because of a lack of feasible work.

If I could handle a year out of work on my savings alone, then don't you think my original finances were fine?

There were a specific number of large scale events. Events that caused the Canadian dollar to be turned to crap in a rapid period of time. Events that caused a doubling of unemployment in my area (and rising). Events that prevented me from getting a feasible job. Medical expenses that popped out of no where. The housing market turning to crap. and all at the same time.

Yes, I am totally aware that some of the choices I made were of a risk, and I fully accept that.

But you have no idea of what my financial situation was before it's current state and every banker I've ever gone to is amazed at my incredible credit score, especially for my age.

What you are seeing and judging me for is only based off of the current situation, of which you have a sever deficit of details on.

So if you have nothing to contribute to the topic, of which has nothing to do with me asking questions on finances, feel free to move along.

a reply to: Ghost147

100% you just answered your own question you're gonna lose your ass no matter what you do and for a future reference don't buy something you can afford

In 2005 when I bought a brand-new F250 I paid $40,000 cash for it and when I drove my vehicle in all they did was laugh at me I don't even want to tell you the beater that I drove onto that will parking lot they pretty much grab forklifts and threw it in the trashcan

And then a month later I lost my truck for going 135 invading cops and assault on officers now I drive a new F250 that was bought cash I had to write a bicycle for a very very long time but spend your money wisely quit living out of your means is the best advice I can give you

a reply to: Ghost147

Hi, this is Uk law which is similar to Canadian law so read the contract. In the UK any good you take on HP can be handed back if you have made over 50% of payments. for instance if you buy a car over 36 months and have paid 19 payments you can just write to them and tell them to pick it up as you no longer want it and under terms of the contract ( which section) you are ending the contract and returning the good. I know this is not ideal but if you can't pay they will end up getting the car back and adding costs. I know you are a bit off the half wage stage but it you can somehow manage the payments then hand it back after half is paid you maintain your credit rating etc and can get another car when things pick up. Finance companies do not like it when you exercise this right so keep all receipts. I once handed a printer back and 3 years later they sent a debt company but I had the receipt and they asked me to send it them, I said no way come to my door and I will show you it or just take me to court and I will produce it there' but I have to advise you that I will be charging costs as the reciept is up my loft and I am disabled and cant get up so I will be hiring a secretary to do it and do the paper work so expenses will be in the region of £600 (printer was £170) I stated just because you cant get your paperwork in order hats n my problem. You can legally hand anything back on finance after you have paid 50% I actually think its 51% leaving 49% which gives you the right to hand it back, if you bought a pc and its less than half price and better spec than what you paid you should check your agreement, They like to hide this bit of consumer protection.