I Want to Sell My Car But I Still Owe Money in Lakewood CO

Empire Lakewood Nissan – I Want to Sell My Car But I Still Owe Money in Lakewood CO

Empire Lakewood Nissan is a local Nissan dealership serving Lakewood Denver Aurora Littleton and the surrounding areas. One of the most common concerns we hear from drivers considering selling a car or trading it in is an outstanding debt. Can I sell my car but I still owe money? The answer to that question is yes, and there are a number of reasons that you may want to do that. Perhaps your financial situation has changed and your car payment is too high or maybe you can now afford something nicer.

You can sell a car while you are still paying it off. Doing so just adds another step to the overall transaction since you have to finalize the loan with the lender. If I want to sell my car but I still owe money in Lakewood, the first thing to consider is whether there is positive or negative equity. Positive equity means that the car has a resale value greater than what you owe. Negative equity means that the car has a resale value less than what you owe. You can still sell the vehicle in either case, but negative equity does present additional challenges and will make the transaction more complex.

The first step is to estimate the value of the vehicle. This is determined by the make, model and model year but also the mileage, condition, accident history, brand appeal and market conditions. The good news is that recent supply issues mean that your vehicle is likely worth more than you think. You can use a valuation tool or compare your car to others currently being sold on the market.

The next step if I want to sell my car but I still owe money in Lakewood is to contact the lender and determine how much it would cost to pay off the vehicle. Once you have these two values, you now have a clearer picture of the situation. A market value greater than the payoff amount means positive equity, and a payoff amount greater than the market value means negative equity.

There are two ways to handle a loan closure. The easiest is to pay the lending institution and receive a lien release, which shows that there are no outstanding obligations and that you can now transfer the title. If you cannot afford to pay the vehicle off prior to the sale, you can pay off the loan and transfer ownership at the same time, but it isn’t as convenient and perhaps a bit more complex.

If you are selling to a private party, you and the buyer will generally need to go to the lien holder. If the lien holder is out of state, there are additional steps, such as acquiring a temporary operating permit. It is generally much simpler when you are dealing with a dealership. The dealer will handle the transaction for you and will generally make a deal with lien holder and ensure that they get paid.

If you sell a vehicle with positive equity, you can receive cash in hand or you can put that equity toward your next vehicle purchase or lease. If there is negativity equity, it is usually best to pay the difference. It may be possible to roll that negative equity into a new loan or lease, but that is kicking the can down the road and will increase your monthly payment and perhaps the loan term.

Sell My Car but I Still Owe Money

Empire Lakewood Nissan is here to help. You can visit our location serving Lakewood Denver Aurora Littleton and the neighboring communities at your convenience. You can also call us or reach out to us via email or text, and we’ll help you determine the best way to sell or trade in your vehicle. Also serving Denver, Breckenridge, Winter Park, and Evergreen Colorado.

*This opinion-based content is intended for informational purposes only. Contact the dealership for the latest details.

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