Can a Financed Car Be Sold in a Used Car Dealership?
2 Answers
A financed car can be sold in a used car dealership, and there are specialized used car markets that accept financed cars, but the disadvantages outweigh the advantages. General used car markets: They usually do not accept financed cars because the ownership cannot be transferred, failing to meet the actual standards of a sale. Used car dealers are also afraid of getting stuck with the car. Specialized markets that accept financed cars do exist, and there are people who specifically handle such transactions. However, the price offered will be relatively low. Transferring ownership during the financing period: You can try to gather the remaining loan amount, then go to the bank to complete the release of the mortgage registration. After retrieving your vehicle title (green book), you can proceed with the sale.
Last year, I sold a car that was still under loan, and the financing wasn't fully paid off at the time. Used car dealerships do accept such vehicles, but the process is much more complicated than with a fully paid-off car. You'll need to contact the bank first to settle the loan and obtain the release of lien document before the vehicle can be transferred at the DMV. The trouble I encountered was not having enough funds on hand to pay off the loan. In the end, the dealership helped by advancing the remaining payment, deducting this amount from the car's sale price and charging an additional 2% service fee. The entire process took three weeks, during which the car stayed parked at the dealership the whole time—I didn't dare drive it out for fear of any mishaps. My advice is to calculate the remaining loan balance and the car's estimated value before selling. If the loan exceeds the car's value, you'd actually lose money, making it better to keep driving it for a couple more years.
