Selling a financed car can feel like a complicated process, but with the right steps, you can easily navigate it. If you’re in Abu Dhabi and wondering how to sell a financed car, this guide will walk you through it. Whether you’re looking for a quick sale or just want to understand your options, we buy any car, including those still under financing.

When you buy a car through financing, you enter into an agreement where the car is used as collateral. This means you don’t fully own the car until you’ve paid off the loan. However, there are situations where you may want to sell your financed car before the loan is settled, such as upgrading to a newer model or simply needing to get rid of an asset that’s no longer necessary.

How Does Selling a Financed Car Work?

The first step in selling a financed car is understanding the loan you owe. The key question you need to ask yourself is: Do I owe more than the car is worth? If you do, this is called being “upside down” on your loan. On the other hand, if the car’s value is higher than the remaining balance, you’re in a good position to sell. You can sell your car even if you still owe money on it, but the process is slightly more complicated.

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Get the Payoff Amount from the Lender

Before selling your car, you need to get the payoff amount from the lender. This is the amount of money needed to pay off the remaining balance on your loan. You can get this information by calling the bank, finance company, or dealership where you took the loan. The payoff amount might be different from the amount you owe on your monthly statement because it includes interest, fees, and potential early repayment charges. Make sure to confirm this number before proceeding with the sale.

Sell the Car to a Dealership or Private Buyer

Once you know the payoff amount, the next step is to decide whether to sell the car to a dealership or a private buyer. Selling to a dealership like iCarsU.com may be the quickest way to sell, and many dealerships, including those in Abu Dhabi, will buy any car, even if it’s financed. They will help settle the loan directly with the lender, allowing the process to move smoothly.

If you opt to sell to a private buyer, the process becomes a bit more complicated. You’ll need to work with the buyer and the lender to transfer ownership. If the buyer is paying you in full, you can use the payment to settle your loan, and then transfer the title to the new owner. If the buyer is financing the car themselves, the process will involve coordinating the financing details with the buyer and your lender.

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Paying Off the Loan

If you sell your car for more than the loan balance, the extra money will go to you as profit. However, if you owe more than the car is worth, you’ll need to cover the difference. This might mean paying out of pocket to settle the loan or adding the remaining balance to a new loan if you’re purchasing another vehicle.

What Happens to the Title?

When you sell a financed car, the title of the car is still in the lender’s name until the loan is paid off. In the case of a dealership sale, the dealer will typically handle this process, paying off the loan and transferring the title to the new owner. In a private sale, you will need to coordinate with the lender to ensure that the title is transferred to the buyer once the loan is settled.

Potential Issues with Selling a Financed Car

Selling a financed car does come with its challenges. If the loan is not paid off, the lender will not release the title, meaning you cannot legally transfer ownership of the car. This is why getting the payoff amount and confirming the lender’s process is crucial. Additionally, if you owe more than the car’s value, you’ll need to find a way to cover the difference, which can be a financial hurdle.

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Why Selling Your Car to a Dealer Can Be Easier

Selling your car to a dealership like iCarsU.com offers a simpler and faster process, especially if you’re in a rush or have limited time to deal with loan settlement details. Dealers are experienced in handling financed cars and will usually pay off the loan for you. This means you don’t have to worry about coordinating with the lender or the buyer.

Conclusion

Selling a financed car may seem complex, but it’s very manageable if you follow the proper steps. By understanding the loan balance, working with your lender, and deciding whether to sell to a private buyer or dealership, you can successfully complete the sale. If you want a hassle-free experience, selling to a dealership like iCarsU.com, which buys any car, is a great option. They’ll take care of the paperwork, including paying off your loan, so you don’t have to worry about any complicated details.

Can I sell my financed car if I owe more than its value?

Yes, you can still sell a financed car even if you owe more than it’s worth. However, you’ll need to cover the difference between the sale price and the remaining loan balance. This can be done out of pocket or by rolling the difference into a new loan.

How do I get the payoff amount for my financed car in Abu Dhabi?

To get the payoff amount, you should contact your lender or finance company. They will provide the exact amount needed to pay off your loan in full. This figure may include interest, fees, and any penalties for early repayment.

What happens if I sell my car and the lender won’t release the title?

If the lender won’t release the title, the sale cannot proceed. The lender needs to confirm that the loan is fully paid before transferring ownership. This is why it’s important to settle the loan before completing the sale, whether you do it through a dealership or private buyer.

Is it easier to sell a financed car to a dealer or a private buyer?

Selling a financed car to a dealer is usually easier because they handle the loan settlement and title transfer process for you. In contrast, selling to a private buyer involves more paperwork and coordination with the lender, making it more complicated.

Can I sell my car to a dealership if I’m behind on payments in Abu Dhabi?

In many cases, you can still sell a car to a dealership if you’re behind on payments. The dealership will pay off the loan, but if the car’s value is less than what you owe, you may need to cover the difference to complete the sale.