subject: Car Selling : Loan Agreements [print this page] If you are like me when I have tried to get someone to buy my car and have had an outstanding loan for the vehicle you might need to verify with the buyer that they are happy to take over the loan arrangements. At first it worried me when I needed to sort this type of thing out before I could get someone to buy my car, but it is something you neednt worry about too much. You have a few options. If you want to sell your car and settle the loan in full then sell the car for what it is worth, you can recoup some of your losses on the loan as well as improve your credit rating. You can also sell the car a little cheaper but sign the loan over to the new buyer so they take care of the payments for the rest of the loans term.
I recommend the first option. It takes care of the loan and allows the buyer to not have to worry about the repayments in the longer term. I have stipulated to buyers that they wont be able to buy my car unless I get a certain price for the vehicle in order to consolidate the loan. Most of the time buyers understand this. If they dont then it saves a lot of hassle with negotiations that will go nowhere. The other option can be pretty handy as well. If you have lost your job or dont have the means to make the repayments anymore, this option can save you a lot of heartache. It can also be appealing to the buyer as long as their credit history is good and they are eligible to take over the repayments. Their initial payment will be pretty low and will probably be a percentage of what you have already payed on the loan. They can then resume the payments on the loan for you for a lesser term than they wouldve had to if they took the loan initially.
I have been able to get people to buy my car using both methods. It can save your credit rating down the track if you are having trouble making the loan repayments. In fact it works to improve your credit rating because it shows you are responsible with your credit.
by: Tatz
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