I purchased a 2006 civic in end of 2005 but I can't keep this car due to work oversea. I am still own the loan which I could not pay off now. Is that a smart way to sell it back to the dealer? What will happen to my loan?
Thanks!!
2007-01-17 05:42:52 · 5 answers · asked by butterfly_maple 1 in Cars & Transportation ➔ Buying & Selling
If you owe more than the value of the vehicle, you must pay the difference to the finance company before they will release the lien, and allow the title to be transferred. If you have excellent credit, you may be able to get a personal loan for the difference!
Your car is collateral for the loan. The finance company has an interest in the vehicle until it is paid off. The only way to sell it is with a release for the finance company!
Take the car to several dealers (and someplace like Carmax), and see what they will offer you for the car. They should all be around the same price (wholesale). You can then contact the finance company ans see if they will allow you to convert the difference to a personal loan!
Good luck!!
2007-01-17 05:54:37 · answer #1 · answered by fire4511 7 · 1⤊ 1⤋
How much do you still owe on the loan? If you owe more than the worth of the vehicle, neither the dealer nor anyone else is going to be interested in buying it. Likewise, no one would want to take over your loan in that case either.
If you just take it back and turn it in, it will go on your credit as a repossession. It doesn't matter if they come get it for non-payment or you bring it in, it's still a repossession and will have a negative effect.
If on the other hand your loan is at, or under the worth of the vehicle, then you could sell it, either to the dealer or a private party and pay the loan off, which would eliminate any further obligation on your part and be good on your credit scores.
Find out how much it's worth ( http://www.kbb.com ) and compare that to what you owe, and you will know the next step.
Good Luck.
2007-01-17 05:51:45 · answer #2 · answered by oklatom 7 · 0⤊ 1⤋
You will still owe your loan unfortuanately. I bought and 06' and traded in my 03' that I still owed on and the dealer bought it for the Kelly Blue Book price but the remainder was negative equity and was put on top of my loan for my new car. FYI: not a good idea. Next time lease the car so you can trade it in or in your case just be without a car when you give it back I suppose.
2007-01-17 06:08:19 · answer #3 · answered by tawnee_santa_paula 2 · 0⤊ 0⤋
try this site, it'll show you different options for a car loan. just fill out the form and you'll see the results instantly.
2007-01-19 10:55:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I DONT THINK THE DEALER WILL BUY IT BACK. AND IF YOU DO OR THEY DID YOU WOULD NOT GET THE WHOLE PRICE YOU OWE FOR IT..
2007-01-17 06:35:00 · answer #5 · answered by Debbie C 2 · 0⤊ 0⤋