Are you trying to sell a car? If you are, great! Good luck getting a good price for it. However, if the vehicle in question has negative equity, otherwise known as an outstanding loan, you will be in for a struggle. Negative equity makes the chances of trading in for a new car at a car yard a whole lot less likely. But he doesn’t mean that you have to throw your hands up in despair. Here is a quick list of things you can do to help yourself in this situation:
If you owe more money on your car than its current value adds up to, it is probably in your best interests to get rid of it. But first you will need to reduce the amount of money you owe. Here are some more in depth descriptions of your options in this situation.
If you want you can sell your car privately. This is something that will require you to list your car for sale on a website that is dedicated to buying and selling. Examples of such sites include gumtree, ebay and Craigslist. There is one flaw that this option has going against it, and it is this: it will be hard to get the buyer to purchase the vehicle for more dollars than it is currently valued at.
A quick fix for that problem would be to pay the remaining money off yourself. Another option open to you is to get a zero-percent credit card loan and use that money. That credit card needs to be paid off at a quick rate, however. If you can’t do that, then it may not be your best bet.
If you are able to locate a dealer who is okay with you trading your car in, or will happily assume the liability of the loan, then this may be an option worth looking into. Just follow this before visiting car dealers.
However, if you decide to choose this plan of action, you are well advised to keep an eye on the way in which the dealer proceeds on executing it. You will need to ask the dealer how they are going to handle the negative equity.
Ensure the answer they give you is easy to understand and to the point. Make sure the terms are properly verified on the contract before you go about signing it.
Whatever you do, don’t simply buy a new car with another loan, and add onto that loan the negative equity you already have. Your debt will just skyrocket.