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Selling a Car with a Loan: What You Need to Know
Manage episode 473335329 series 2911349
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The Growing Auto Loan Crisis
- Automotive loans are a key indicator of economic trends.
- A record number of car owners are unable to afford their loan payments.
- Many borrowers are upside down on their loans, owing more than their car’s value.
Understanding Vehicle Short Sales
- A vehicle short sale allows you to sell a car for less than the loan amount with lender approval.
- This is different from voluntary repossession, which can leave you with a significant financial burden.
- Short sales require paperwork and lender negotiations but can help you avoid a major debt.
The Downsides of Voluntary Repossession
- Returning your car to the lender results in an auction sale, often at a lower price.
- Lenders can still pursue you for the remaining balance after the auction.
- A short sale may reduce or eliminate this debt if done correctly.
How a Car Short Sale Can Help
- By securing a buyer and negotiating with the lender, you may sell the car at a fairer value.
- Some lenders may require partial payment of the remaining balance, but this is often lower than a full deficiency.
- This process helps you escape an unaffordable loan without a large financial hit.
Need Expert Assistance?
- Get live one-on-one consultations with licensed professionals, including:
- Private investigators
- Commercial insurance brokers
- Real estate title examiners
- Certified civil court mediators
- Licensed general contractors
- Click the link below for guidance on car short sales or other legal and financial matters.
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