Selling a Car When You Still Owe Money | Mobile AL
Selling a Car When You Still Owe Money in Mobile, AL
Ready to sell your car, truck or SUV? There’s a high demand for quality pre-owned vehicles, which means you’re likely to get a great offer for your model. Here at Lexus of Mobile, we’re always interested in purchasing pre-owned vehicles to add to our inventory, and we’d love to take yours off your hands for a great price. You can even find out how much your vehicle is worth on our website. Worried about your auto loan? Even if you still owe money on the car you want to sell, you can still sell us your car. There’s no need to wait until your loan is paid off — we’ll be happy to buy your vehicle whether you have positive or negative equity. Keep reading to learn more.
Selling with Positive Equity
If you have positive equity in your vehicle, that means that you still owe money on it, but its value exceeds that of your loan. As an example, let’s say you owe $5,000 on your loan, and your vehicle is worth $20,000. You would have $15,000 in positive equity.
If this is your situation, we can buy your car from you in one of two different ways. We can send the amount your car is worth directly to your lender, paying off the loan, and your lender will send the difference to you. Alternatively, we can just pay the remaining loan balance to your lender and give you a separate payment for the rest of your car’s worth. After this, all you have to do is give us the title (once you and your lender have signed it).
Selling with Negative Equity
In contrast, negative equity occurs when your vehicle is worth less than what you owe. As another example, if your car is worth $5,000 and you owe $10,000 on it, you have negative equity in it. This can happen when your vehicle depreciates faster than you’re able to pay it off.
But don’t worry: If you have negative equity in your car, you can still sell it to us. Once we pay you for your model, you’ll just have to pay your lender the remaining loan balance in order to close out the debt. Even after making this payment, you should still have money left over since we pay well for pre-owned models here at Lexus of Mobile.