Should I Sell My Car to a Dealership? What if I Still Owe Money?

March 15th, 2021 by

Deery of Ames Finance Department

When getting ready to sell their car, a lot of Iowans expect the process to be fairly stressful. There’s taking photos, cleaning, taking low offers, and meeting strangers. Not fun.

That’s why so many car owners in Central Iowa choose to sell their car to a dealership like Deery of Ames, even if they’re not buying another car.

There’s an old line of thinking that you get less for your car at a dealership, but that’s often not the case. Especially if you factor in your time, how long it takes to sell the car, and if you’re still making payments.

Want to learn more about selling your used car to a dealership? Read on below! One of the biggest things that keeps Iowans from selling their car to a dealer, is they still have financing. If that’s you, we will also cover how to sell or trade your vehicle, even if your loan is underwater.

How to Sell Your Vehicle to Deery of Ames

As mentioned above, we all know that selling on the private market means time, lowball offers, and the insecurity of giving your keys to a stranger. Luckily, selling your car to Deery of Ames is as easy as can be!

Not all Ames, IA car owners realize that they can easily sell their car to a dealership, often for more than KBB Fair Value. That’s because dealers like Deery of Ames always need more used vehicles, and want the chance to resell yours.

Dealers can also do all the paperwork in-house, which means you can get the sale completed quickly in one sitting. That means visiting a dealership to sell your car is the easiest, safest, and often the most profitable way to sell your car.

If you have a vehicle you’ve been thinking of selling, get a quote from Deery of Ames, and get the most for your vehicle.

What if You Have a Car Loan?

If you want to sell your car but still have a loan, there’s no need to worry. There are several options available, even if you owe more than the car is worth.

If you are selling on the private market, you will want to get all your loan paperwork, and speak to a representative to make sure you have everything you need. The Payoff Amount is one of the most important things to know, even before you start the process.

But what if your Payoff Amount (the lump sum it takes to pay loan in full) is more than the car is worth? Since most private buyers will make offers at or under KBB, you probably won’t get enough to pay off the loan. That’s where dealers like Deery of Ames come in.

Reducing Your Car Payment

Having negative equity, or being “underwater” on your loan can make you feel trapped. But when you bring your vehicle to a dealer, you have a few options.

Normally, when you trade in or sell a vehicle, the dealer would pay off the remaining balance of your loan. Then the remaining amount would go to a down payment, or you could receive the difference in cash. With an underwater car loan, it may work a bit differently.

A popular option for our customers who need to get out from under an expensive car loan, is to roll the remaining balance of their loan into a different vehicle. Say you owe $2,000 more than your vehicle is worth. Your trade will leave those $2,000 to be added to your new car loan.

That may not eliminate your car payment completely, but if you are trading in for a cheaper car, it will reduce it significantly. And that $2,000 will be spread over the term of the loan. If you also get a lower interest rate, it amounts to even more savings.

Visit Your Local Car Dealer

And as mentioned above, many dealers are currently paying over KBB Fair Value for used cars, so the numbers you get from the dealer will often be better than what you get from tools online.

If you need to know your options, the professional finance staff at Deery of Ames is happy to help. We want you to have the best information possible, whether you are buying a car here or not.

Stop in, and experience the customer service that has made Deery of Ames the car dealer of choice for so many drivers in Central Iowa.

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