Planning to Sell a Financed Car? Here’s What You Need To Do!
Financed Car

Car payments can become quite confusing if you do not have a structured payment method. Soon, you will find that the expenses have become unaffordable. You can sell a car, but it can become tricky if you have a debt.

However, there are also legal ways to sell a financed card in South Africa, even before it is paid off. Let’s find out how.

Is it possible to sell a financed car in South Africa?

Yes, it is possible to sell a finance car, but you have to follow specific legal methods, which should be by the National Credit Act. However, the company still holds the car title as the finances must be paid off. The seller must settle the pending amount during or before the sale process.

How can you sell a financed car without paying it off?

  • Determine the worth of the car

You have to determine the car’s market value to get an estimate and decide the amount for which you will sell it. Many online tools and services are available for vehicle finance for bad credit, which can help you get a proper physical inspection and provide you with an accurate valuation.

  • Determine the potential shortfall

When trying to sell the car, you must communicate with the lender, which is the first step through the settlement. Thus, you can tell exactly how much you have to repay to settle the pending balance on the loan. You must understand whether there is a potential shortfall and compare the car’s settlement amount with the vehicle’s value. The shortfall can be determined by understanding the difference between the value and the available funds covered. You must remember that settling a loan early also involves penalties, which should be added to the total cost.

  • Be transparent with your lender

When trying to sell the car, be transparent and upfront about it and discuss the matter with the lender. An honest conversation will clarify all the doubts regarding the penalties, and you will also get to negotiate the terms. They can also help you find a solution for the shortfall or guide you through the sale so that you can sell the vehicle legally. They would also help you understand the actions affecting the contract.

  • Explore the selling options

There are different ways to sell a financed car; you must explore your options. You can contact a car dealership and sell it to them, which offers a convenient way to complete the entire process. However, you might not get the value you expected, but they can help cover the process without any hustle of selling a finance car.

If you want a higher return than dealership trading, you can opt for selling privately. However, it requires more effort, as you have to advertise it, handle the inquiry, negotiate, and verify the paperwork.

Summing it up 

If there is any shortfall, you can cover it up using a personal loan by contacting or paying out of pocket. You can also transfer the balance to a new loan account you have collaborated with. Settle the existing loan, finalize the sales, and transfer the car ownership.

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