how do you sell a car using consignment?

Question

My girlfriend has a 2004 xterra and she cannot afford the payments. So how can I help her sell it. It's not like it's a 5,000 dollar item it's like 17,000 . Most private sales are lower than that. I put it up on vehix and craigs list ..Help please

Answer 1

Unless it is a 4 wheel drive V6 supercharged model, it is not worth anywhere near $17000.

Take the truck to a place like Carmax, and have them give you a purchase offer on it! This will be the wholesale value of the vehicle! You then can price the vehicle correctly for the market!

If she owes $17,000 she is most likely what is called "upside down" meaning that she owes more than the vehicle is currently worth! She will have to come up with the difference to pay off the loan to sell the vehicle!

Answer 2

Where the hell were you when she was falling in to such a money pit??????

Just kidding....

Everyone pretty much gave you the best options.....

Selling to Carmax won't be cheap because their appraisals are always much lower than wholesale value. Expect no more than $12k.... which means she'll have to come up with $5k out of pocket to satisfy the loan.

Trading-it in will also result in the negative equity being added on to the new loan.

Best and cheapest way is to find someone who'll take over the payment. She'll most likely have to offer some type of cash bonus, like $2000 or so, to garner interest. But don't surrender the car without first legally transferring the loan contract to the buyer. You can do this by contacting the bank and requesting an application. Never never let a stranger drive the car without first assuming the car note because if anything goes wrong, such as an accident, hit & run, bank robbery, non-payment, it becomes the registered owner's responsibility.

Whichever way she chooses to go, she will still be out several thousand dollars.

Answer 3

There are lots that let you put the vehicle on display and they charge you a fee for selling it. Most consignment lots are lower end vehicles since the customers tend to be lower end customers.

You have a pretty serious problem. To sell the vehicle, she will need to be able to pay off the loan with the proceeds of the sale. If that is not enough, she will need to pay the difference to the loan company to get her title back.

Her best bet would be to get a personal loan from her bank or credit union and use that money to pay the difference between what she sells it for and what she owes.

Selling it private party; the paper, internet, side of the road will get you the most money. Selling it to a dealership like carmax is the easiest way.

A note about letting someone take over payments. Have your girlfriend call her finance company and see what their policy is, if they won't remove her from the loan, don't do it. If they don't remove her from the loan then she will be responsible when the buyer stops paying.

Taking over a loan almost never works. The person buying the car usually has bad credit or they wouldn't need to take over a loan that is more than the vehicle is worth.

Answer 4

Consignment merely means you put it on someones used car lot, and they try to sell it for you at the price you set. If the price you set is more than the car is worth, which it seems to be based on what you've said, it sits there, she doesn't get to use it, and the payments are still due every month.

You really can't sell it anyway, since she doesn't own it, the finance company does and they aren't likely to send you the lien release until it's paid for.

You could try finding someone to take over payments, but be careful doing that, since if that person doesn't make the payment on time, they will still come after your girl friend, since it is still in her name, unless the person taking over payments contacts the lender and switches things over, and the lender would have final say there and would base their answer on the credit worthiness of the new party.

Another option, if her credit is good, would be to borrow enough to pay off the loan and perhaps the new loan would have a longer term, or lower interest rate, which would lower her payments.

The reality is, perhaps all you can do is help her financially for a while. If you do, and you happen to break up, chances are you'll never get any benefit or payback though.

Answer 5

i own a repair shop,and have her try this,,run an add for it in the local auto trader,and out it for sale,,or need someone to take over payments ,,this way she might get someone to give her a few bucks,and she gets the car transferred to someone else so they can finish paying for it,,i have helped people do this before,it works well,,good luck i hope this help,s.

Answer 6

If she owes more than what it is worth, she is going to have to take a loss. Carfax is the easy way. They buy your car.