I owe 8000.00 on it still. Can I sell it private party even though I owe money on it still? Would it be better if I traded it in? Can somebody explain to me what would be better and easier way of doing this transaction.
2007-05-06 02:37:32 · 2 answers · asked by coach 1 in Cars & Transportation ➔ Buying & Selling
Yes you can sell privately, but you must pay off the loan & have it released. On a trade in you only pay tax on the DIFFERENCE in price, whereas if you sell it privately & buy a new vehicle, you pay tax on the full amount. There is a substantial savings on trading in the vehicle.
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2007-05-06 03:28:19 · answer #1 · answered by Mr. T 7 · 0⤊ 0⤋
Currently you and the finance company are joint owners - both your names are on the title. You should call your finance company to see how they handle this.
You can sell it to a dealer or a private party. The process will go like this:
- They pay you the money
- You take 8K of the money to pay off the loan
- Once the finance company has the money they remove their lien / name on the loan
- The new owner can get a new title
Your finance company will have a process for the above - it differs slightly by state and by the companies involved.
2007-05-06 10:06:32 · answer #2 · answered by Ansrgeek 7 · 0⤊ 0⤋