Author Topic: Selling Financed and Upside-Down Car  (Read 1517 times)

jbrx

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Selling Financed and Upside-Down Car
« on: January 29, 2017, 09:55:57 AM »
I have finally made the commitment to get rid of my financed car and quit hemorrhaging money every month. I regret my mistake very much, especially since I tracked my driving for a month and it would have cost me $78 to uber everywhere I drove, versus $308 monthly payment + $140 insurance. It's also not registered in my current state (about $700 to do so) and two of the tires are at 5/32nds and will need to be replaced soon (not terribly soon given my infrequent driving, but still another cost I don't want to pay for). The only good news is that my interest rate is 0.9%, so that's not piling on too heavily.

Unfortunately, because it's financed I don't have the title and I don't have the money to pay it off and get the title. According to Blue Book, I also owe more on it that it's worth.

It's a 2015 Toyota Corolla L (most basic model) that I owe $12,465 on. KBB values it at $11,176, and the Toyota nearest me offered $10,000 for it at my last service appointment a few days ago (though I assume they would tack on some garbage fees for made up reasons). When I checked Craigslist, same year/model cars with double the mileage were listed for around $13-14k, as were older cars (2007, 2009) at around the same mileage.

The only damage to the car is some moderate scratches on the front driver side fender. At my last service appointment, they noted that the two front tires are at 5/32nds and the air filter "may need attention." I've completed service appointments every 6 months, with records available, and it still has one free service appointment left in May. It was street kept in Southern California (drought = no rust) and has been garage kept for the past 6+ months on the East Coast.

My questions are: Is it possible to sell a financed car without title in hand? Google searches say it's possible if the buyer trusts you, but does that ever actually happen? Is it better to try to sell to a private buyer who will trust me versus taking the $10k from the dealer and finishing the payments on my own as fast as possible? And if I go the private sale route, what can I do to try to up the sale value (I'm thinking the Jeep Suicide article where the guy took photos of it in the woods I don't think Corolla in the woods has the same appeal) with little to no tools/equipment/mechanical ability?

Dave1442397

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Re: Selling Financed and Upside-Down Car
« Reply #1 on: January 29, 2017, 11:06:37 AM »
I looked at ebay motors and checked the "sold" listings for 2015 Corollas in my area. Most of the base models sold for $8 - $11,000. Try doing that to see what they're going for in your area.

$10k from the dealer may be worth doing, if only to save the hassle of trying to sell it yourself, although if the dealer is offering $10k, they must be sure they can sell it for more than that. Then again, they also know what they're doing and can let the car sit for a while if need be.

To cover the difference in the amount owed, you could just get a personal loan from a credit union, bank, or even a place like www.lendingclub.com

As far as maintenance goes, you may need to replace the tires before selling it to a private party. The air filter is one of those things you should never let a dealer do for you. Here's an air filter for $8 on Amazon - https://www.amazon.com/Best-ACTIVATED-Replacement-Corolla-Outback/dp/B01L7RP13A/ref=sr_1_2?ie=UTF8&qid=1485713146&sr=8-2&keywords=2015+toyota+corolla+air+filter



jbrx

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Re: Selling Financed and Upside-Down Car
« Reply #2 on: January 29, 2017, 12:59:43 PM »
I looked at ebay motors and checked the "sold" listings for 2015 Corollas in my area. Most of the base models sold for $8 - $11,000. Try doing that to see what they're going for in your area.

$10k from the dealer may be worth doing, if only to save the hassle of trying to sell it yourself, although if the dealer is offering $10k, they must be sure they can sell it for more than that. Then again, they also know what they're doing and can let the car sit for a while if need be.

To cover the difference in the amount owed, you could just get a personal loan from a credit union, bank, or even a place like www.lendingclub.com

As far as maintenance goes, you may need to replace the tires before selling it to a private party. The air filter is one of those things you should never let a dealer do for you. Here's an air filter for $8 on Amazon - https://www.amazon.com/Best-ACTIVATED-Replacement-Corolla-Outback/dp/B01L7RP13A/ref=sr_1_2?ie=UTF8&qid=1485713146&sr=8-2&keywords=2015+toyota+corolla+air+filter



Thank you! The closest to me on ebay motors are about 300 miles away, but consistent with what I've been seeing on craigslist around 13000 for higher-mileage cars.

Thanks as well for the info on air filters I know nothing about cars, so I had no idea it would be so easy to do. I will definitely replace that myself.

I've been looking into at-home scratch repair kits, too. I don't know if they'll fully get rid of the scratches I have, but I figure anything that makes them better is worth doing, especially seeing how cheap some of those kits are on Amazon.

Metric Mouse

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Re: Selling Financed and Upside-Down Car
« Reply #3 on: January 29, 2017, 07:06:09 PM »
I've been looking into at-home scratch repair kits, too. I don't know if they'll fully get rid of the scratches I have, but I figure anything that makes them better is worth doing, especially seeing how cheap some of those kits are on Amazon.

Let us know how the scratch-kit works. I think you might be surprised - a body shop buffed out what I thought were pretty obvious scratches on one of my vehicle's finish with just some compound and a bit of time with a buffing wheel. It can make a huge difference.

RWD

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Re: Selling Financed and Upside-Down Car
« Reply #4 on: January 29, 2017, 07:11:35 PM »
How to sell a car with a lien:
https://www.youtube.com/watch?v=dU6lejMfVzw