Author Topic: How to sell an SUV that still has a car loan on it?  (Read 4225 times)

wishfulsaver

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How to sell an SUV that still has a car loan on it?
« on: February 27, 2015, 01:03:12 PM »
I have a 2004 Nissan Murano that is a gas guzzler, only 18 mpg. I want to free up my expenses and buy a more fuel efficient car, but how can I do this if I still have a car loan on it? I think I took out 10k, still about 6k left.

What are my options? Also, my mother was a cosigner, so that needs to be taken into account as well.

mschaus

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Re: How to sell an SUV that still has a car loan on it?
« Reply #1 on: February 27, 2015, 01:46:34 PM »
Two primary options:

1. Pay off car so you have the title and can sell as normal on Craigslist. Worst case maybe you can borrow the money from your mother for the few weeks until you can pay her back when the car is sold.

2. Meet buyer at the bank that has your title, arrange ahead of time for them to have the title on site, and then the buyer can pay off the loan directly and the rest to you. More hassle for the buyer of course. And you mother will have to go with you.

I bought a car like this recently and took a big gamble because the bank refused to bring the title on site, then of course they accidentally mailed it to the original owner. Luckily she was honest and passed it along to me. Car had to be parked for two weeks until title arrived so I could get plates. All to get a good deal!

Major lesson is: always have the title in hand if you are selling, always get the title in hand when you are buying.

MillenialMustache

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Re: How to sell an SUV that still has a car loan on it?
« Reply #2 on: February 27, 2015, 01:59:38 PM »
If you are not underwater on the car, an easier route may be to try and sell it to the dealership of the car (ie, a Toyota dealership if it is a Toyota). They will often buy a car from someone, esp. if it is desirable (not sure if yours is or not) even if you don't buy anything from them.

JLee

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Re: How to sell an SUV that still has a car loan on it?
« Reply #3 on: February 27, 2015, 03:06:39 PM »
If you are not underwater on the car, an easier route may be to try and sell it to the dealership of the car (ie, a Toyota dealership if it is a Toyota). They will often buy a car from someone, esp. if it is desirable (not sure if yours is or not) even if you don't buy anything from them.
You'll get less for it that way than you would from a private seller, though.

cautiouspessimist

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Re: How to sell an SUV that still has a car loan on it?
« Reply #4 on: February 27, 2015, 03:25:30 PM »
Well, I just did a quick check with kbb, and that car is probably not worth much more than 6k anyways. Since you're roughly equal in terms of what you owe vs. what you could get, I would suggest paying it off/down as quickly as possible, then selling it and buying something more reasonable.

wishfulsaver

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Re: How to sell an SUV that still has a car loan on it?
« Reply #5 on: February 27, 2015, 04:50:12 PM »
My car has a lot of issues: power steering leak, the axle seal, the engine air filter and in cabin filter is low and something isn't right about the oil, like the pressure is too low, around 293 when it should be 550-600. So essentially with the oil, my engine would be eating itself. It's already at 120k miles.

I feel silly because I bought it from a smaller dealer in 2013, but they did not disclose/fix these issues.

And I took out a 10k loan on it, but similar pricing for my area. I don't know what to do because I still need a car, but even if I break even, where would I get the rest?

I had them do an appraisal, which they quoted 4500, but clearly wanted to roll me into another loan by buying a car from them.

I get it serviced at the dealership for the records...but yeah, this is all on carfacts with the vin number now.

mschaus

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Re: How to sell an SUV that still has a car loan on it?
« Reply #6 on: February 28, 2015, 11:46:07 AM »
wishfulsaver -- you threw out a lot of details on the situation, but most of that is in the past. You are where you are, and the job now is to unload the Murano as efficiently as possible to get you back on track.

First, I would avoid using that dealer at all since they ripped you off the first time. Next, the car needs repairs, but if you cannot make them efficiently (i.e. yourself or you know a guy), I would sell the car like it is. If you have a dealer fix it, you will not recover that cost when selling. Be honest of the condition for obvious issues (noises, paint chips, trouble shifting, etc.). Non-obvious or maintenance things like filter replacements and optional non-performance-impacting seal replacements are the responsibility of the buyer to have checked out. "Add a quart every week" is something to disclose.

The most efficient way to sell is craigslist, so I recommend that. Be honest on the condition and make the price appropriate, but of course with some extra margin for negotiation. Search "how to sell a car" and read up. This is a good one:

http://www.edmunds.com/sell-car/10-steps-to-selling-your-car.html

Best of luck! It takes work, but that's what this is all about! You will feel very accomplished when done and sitting in your new used Honda Fit (assuming you need a car at all - be sure to consider this).

http://www.mrmoneymustache.com/2012/09/18/is-it-convenient-would-i-enjoy-it-wrong-question/

N

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Re: How to sell an SUV that still has a car loan on it?
« Reply #7 on: February 28, 2015, 12:42:19 PM »
I sold a car that still had a significant loan on it (10K).
In my case, an aquaintance bought it. So, they paid me, I paid off the bank, got the title and handed it over to them.
I didnt drive the car once we agreed on the deal, so it did sit for about 10 days.

I called the bank that held the title and they wanted nothing to do with meeting at a bank or anything like that. They were pretty unhelpful, actually. But I did also sell it for more than I owed, and the buyer didnt know that (none of their business) and if we had done it at the bank, they would have seen my payoff, most likely.

Id let it be known on fb or any other social media that you use that you want to sell your car. You may get a buyer from someone you know. coudl be less hassle.

Dimitri

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Re: How to sell an SUV that still has a car loan on it?
« Reply #8 on: February 28, 2015, 02:44:21 PM »
One very easy way to sell your vehicle is to take it to CarMax.  They will appraise it and make you a firm offer.  If you like it accept it.  If not, then at least you know what a reputable dealership will pay you for your vehicle.

With respect to having a loan on the vehicle - this is how CarMax deals with it:

We will need to contact your lien holder during business hours to get a 15-day payoff. To pay off the lien, we will need your lien holder's name and phone number, the name(s) on the account, and your lien holder's account number and social security number. If a previously paid-off lien is listed on the title, you'll need both the title and the lien release from the lien holder before we can purchase your car.

Read more about selling your car to CarMax at http://www.carmax.com/enus/we-buy-cars/we-buy-cars-faq.html

Personally I sold two cars in the past two years to CarMax (I did have title in hand to both).  I was pleased with their professionalism and thought both offers were quite fair.

wishfulsaver

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Re: How to sell an SUV that still has a car loan on it?
« Reply #9 on: February 28, 2015, 11:55:44 PM »
I took my car in for an oil change and had them run a diagnostic - so I added the issues as I learned about them.

I will see what appraisals I can get, but honestly there is a lot on my plate right now.

I'm not doing too well health wise, already overwhelmed with everything else.

This is just another thing on top of it.

Thanks for the suggestions, however.

sarah8001

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Re: How to sell an SUV that still has a car loan on it?
« Reply #10 on: March 01, 2015, 01:58:07 AM »
It sounds to me like there is no ethical way you can sell this car for enough to pay off your loan and have enough left over to buy another car. If that's the case, what do you have to lose by trading it in and getting a loan towards the cheapest, most fuel efficient vehicle you can find? Right now you have a car loan and a gas guzzler. If you found something  used, inexpensive, and super fuel efficient, you'd have a car loan and a fuel efficient vehicle. Am I missing something? I've never bought a car with a loan.