What happens if you dont want to have a car anymore that is on finance do you have to keep it.
2007-07-19 01:10:07 · 8 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
yes you have to keep it, unless you can...
A. trade it in a dealership who will pay it off then put you into something else.
B. sell it privately, in which you will inadvertently payoff the loan(call the lender and find out you payoff balance)
C. total loss the car in an accident or theft, and hope you have gap insurance.
D bad option! give the car to someone you REALLY TRUST to make the payments (the loan is still in your name and will make it hard to purchase another till that loan is satisfied)
E. payoff the loan yourself.
F.last option, give the car back to the lender and have a repo on your credit report. (bad idea)
those are pretty much your options,
good luck!
2007-07-19 02:26:06 · answer #1 · answered by MARIO R 3 · 0⤊ 0⤋
You owe the bank/finance company money on that vehicle, called a note. If you sell the car you have to pay off the note. The frequent problem is that you owe more than the car is worth; this is called being upside-down. It usually takes about 60% of the note's term to reach the break-even point (general rule of thumb, not exactly).
Put this way: say you bought a car for 20,000 and had 3,000 cash. You borrowed 17,000 to complete the purchase. After some amount of time of making montlhly payments you still owe 12,000 on the note. The car's market value is 10,000. That 2,000 difference is the upside-down amount and if you sell the car you have to give the financing entity that 12,000 meaning 2,000 out of your pocket.
If the car's market value is more than what's on the note you make a profit. In the above example if the car's market value is 14,000, you pay off the 12,000 note and pocket 2,000.
But however it goes, you have to pay off the note.
2007-07-19 01:31:03 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You need to arrange this deal between you, the Toyota Finance that gave you a loan and the buyer. In order to sell the car the lender has to clear the title first and they will only do that after receiving all the money you owe them. You cannot sell the car without clearing the title. Call Toyota or your dealer and ask them, they will guide you through the process.
2016-05-17 08:39:27 · answer #3 · answered by ilana 3 · 0⤊ 0⤋
You have three options:
Keep the car until it is paid for. Then it is yours to do with as you please.
Sell or trade the car before it is paid for. This option requires you (or the dealer) to send a check for the full amount needed to pay off the car. You can sell a financed car at any time, but you must pay off the lien as part of the transaction in order to do so.
Repossesion is your third option. I do not recommend this option to anyone for any reason. This will severely damage your credit.
2007-07-19 03:16:16 · answer #4 · answered by Matthew Stewart 5 · 0⤊ 1⤋
You can sell it, but you must contact the finance company first and agree a settlement figure before you sell otherwise you are illegally selliing a vehicle which you don't have good title to. Your buyer won;t either.
2007-07-19 01:14:23 · answer #5 · answered by Sal*UK 7 · 0⤊ 1⤋
You signed a contract to make payments over time. Whatever you do, you have to pay off the loan.
2007-07-19 01:36:51 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Sell it and pay it off or trade it in and have the dealer pay it off as part of the new loan package.
2007-07-19 01:12:02 · answer #7 · answered by wizjp 7 · 0⤊ 1⤋
you dont have to keep it..just find another person who wants the car and they can take over the payments.
2007-07-19 01:12:40 · answer #8 · answered by ♥Chastons Wifey♥ 5 · 0⤊ 1⤋