Still, if you cannot wait, you can sell a vehicle with a loan in one of the ways briefly described below. However, since selling a car with negative equity can become quite expensive, it is sometimes a better idea to hold off until you are no longer upside down in your loan. In fact, there are multiple ways in which you can go about doing this. You can sell a vehicle that has negative equity. Can You Sell a Vehicle with Negative Equity? Furthermore, if you wanted to sell/trade the vehicle, you would not owe money and would have extra to put towards a new vehicle. Having positive equity is ideal because if you were to get into an accident, the insurance payment would exceed the value of the car. If you sold the car, you would make a profit. In this scenario, you would have positive equity of $2,000. However, instead of the car being valued at $4,000, it is valued at $8,000. Let’s say that you have that same auto loan, and you still owe $6,000 on it. It is the exact opposite of negative equity and is more commonly referred to as “profit.” Positive equity is a term that is not heard quite as much. However, it may affect insurance payments and become a factor when trying to sell the car. Since vehicles begin to depreciate as soon as you drive them off the showroom floor, it is common for people to have negative equity, and most people pay their loans without ever realizing it. For example, let’s say that you have an auto loan that you still owe $6,000 for, but your car is only valued at $4,000 you would have negative equity of $2,000. Simply put, having negative equity means that you owe more for the vehicle than the vehicle is estimated to be worth. If you are trying to sell a vehicle with a current auto loan on it, you may have heard the term negative equity being tossed around, but what is negative equity? However, if the quote is lower than what is owed, the seller must pay the difference at the time of the sale.Ĭontinue reading to learn more about selling a currently financed vehicle, as well as the process of doing so with Carmax. If the quote is higher than what is owed, Carmax will pay the difference to the seller. They are well known for buying or making an offer on almost any vehicle, but will Carmax buy a car with a loan on it?Ĭarmax will buy a currently financed vehicle. Has your family grown since you bought your car? Do you need something more fuel-efficient? Do you simply want to upgrade to something featuring newer technology? Whatever the reason, selling your vehicle is easy with Carmax.
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