POV: you purchased a new truck through a dealership with a 96-month contract. This vehicle is exactly what you need to get around, and it’s an upgrade from your last truck. Later on, you suddenly wind up in financial straits, but your truck is worth a few thousand dollars, so you’re considering selling it. But can you sell your truck if you still owe money on the loan?
Below, we’ll discuss the process of buying and selling a truck with an outstanding loan or financing agreement and whether it’s a good idea for your circumstances. Keep reading to learn more!
Is It Possible to Sell a Truck I’m Still Paying Off?
The short answer is yes, you can sell a financed truck. However, selling a vehicle you still owe money on can create a few complications. Before you are able to sell the car, the loan must be paid in full before you can legally transfer ownership to the buyer.
Whether you can sell your vehicle is up to your lender, so before you begin the sale process, contact them and explain your situation. If they agree that you can sell the truck, they will get in touch with your dealership to figure out how to settle the loan. Afterward, they’ll provide you with the total sum you will owe for your settlement. This information will help you determine whether you can reasonably afford to pay out your truck and sell it or if you’re better off keeping it.
Things to Consider When Selling a Financed Truck
While it is possible to sell a financed truck, there are a few things to take into consideration before you decide whether to go through with it. Model depreciation is one of the biggest factors in determining whether a financed vehicle is worth selling. Trucks and other automobiles are considered depreciating assets, meaning their value drops quickly. In fact, most vehicles lose about 15 to 20% of their value once they leave the dealership.
Your loan term will also determine whether you have negative or positive equity attached to your truck- whether you owe more money than it’s actually worth. For example, if you financed a $40,000 truck and have owned it for a couple of years, it may only be worth around $30,000 today. If you decide to sell it, you will lose out on $10,000, as the dealership will only sell your truck at its current market value.
This is particularly important for younger drivers to know when they’re considering financing a vehicle for the first time. The average salesperson may not take the time to explain the ins and outs of transferring ownership. If you choose to finance or sell a truck through AutoLoan Hub, we’ll ensure you’re fully informed of your options.
Choose AutoLoan Hub to Sell Your Truck
Is it possible to sell a financed truck? Yes, by following the correct steps, you can successfully pay off your loan or finance agreement before transferring ownership to a new buyer. Before deciding whether this is the right decision for your circumstances, consider the value of your truck and how losing out on a portion of money from the sale will impact your finances.
If you’re planning to sell your truck, our team at AutoLoan Hub is here to help! We offer a streamlined process for buying and selling vehicles that is completely hassle-free on your end.
Visit our Sell My Vehicle page to learn more.
