Your Guide to Selling a Financed Car

People come to us all the time asking, “I want to sell my car, can you help?” Generally, the answer is, “Yes!” If you own your vehicle outright, then selling it is quite simple. We can take care of everything for you when it comes to filling out paperwork, providing you with payment, and ensuring the vehicle is properly transferred to us. If your vehicle is currently under a lease or you still have an auto loan, things can become a bit more complicated. Bringing your vehicle to us is still the best way to go when selling a car with a loan, rather than attempting to figure it out on your own or search for a private buyer, since we simplify things as much as possible. Let’s take a look at some important things to know when selling a financed car under a loan or lease.

Selling a Leased Vehicle

One of the first questions a lot of people with a leased vehicle ask us is, “Can I sell my car if it’s under a lease?” The answer to that is a definite maybe. It largely depends on the terms of your lease and how you’re trying to sell it. Before the COVID-19 pandemic, many leases allowed third parties to buy a leased vehicle. For example, someone with a leased Chevy might be able to sell it to a non-Chevy dealership. When used-vehicle prices skyrocketed throughout 2020 and 2021, third-party dealers aggressively bought leases to offer customers more used cars. Licensed dealerships were left with a shortage of models coming off leases.

In response to this, many leases now limit your options for selling a leased car to anything other than a licensed dealership of that brand. As a Chevy dealer, we can buy leased Chevy models. However, if you have a leased Ford, we likely can’t buy that from you, although our friends at Ruge’s Ford can help. Not every brand has these restrictions in its lease agreements. You’ll need to look at the language in your lease to see if you can sell your vehicle to a third party or dealership other than one licensed to carry those models. Step one in selling a leased car is to find out what your options are for it.

From there, you need to figure out the value of your vehicle and how that compares to the buyout price for that model. When you sign a lease, one of the terms indicated in all of the paperwork is the residual value or buyout price of the vehicle. This is what the leasing company estimates the vehicle will be worth when the lease ends, which is the price you or another permitted buyer will pay for the vehicle. Now, you need to know the value of your vehicle. An easy way to figure this out is to use the simple value estimator tools on our website to get a realistic appraisal of what your vehicle is worth. If this appraised value is more than the residual value of your vehicle, then selling it could be worth the effort.

If everything looks good so far, then bring your vehicle to us. We will quickly inspect it and make you a fair offer on your leased vehicle (again, assuming we’re permitted to buy it). If you accept this offer, we can take care of everything else. We will essentially buy out the lease, paying the residual value, and then pay you the difference between that and what we’ve offered you for the vehicle. Note that this can take a bit longer than buying a car that you own or one that’s under a loan, so we might need to mail you the payment. We will provide paperwork with all the information as part of an official agreement, so don’t worry. Finally, keep in mind that the closer your lease is to ending, the more you are likely to get for your vehicle, since remaining lease payments have to be factored into the price to buy out the lease.

Selling a Vehicle With an Auto Loan

Things can be a bit simpler when you’re selling a vehicle under an auto loan, but there are still plenty of factors to consider. In general, there typically aren’t limitations on who you can sell to with an auto loan like you can encounter with a lease, making things a bit simpler. You still need to understand what’s owed on your vehicle’s financing compared to what it’s worth, however. Again, you can start by using the appraisal tools on our website to get a quick, realistic estimate of how much your vehicle is worth. Hopefully, it is more than what you still owe on the loan.

You can then bring your car to us at Ruge’s Chevrolet. We’ll give it a quick inspection to ensure everything looks good, then make you a fair offer for your vehicle. Assuming the offer we make is more than what you owe still on your auto loan, we will essentially pay off the loan and then pay you the difference that’s left over.

It’s important to note that some auto loans have penalties that need to be paid for an early payoff, so be sure to look at all the financing details before you decide to sell. This is why our financing specialists always take the time to go over every detail with our customers before finishing paperwork.

Using a Financed Vehicle as a Trade-In

You can also use a vehicle with financing as a trade-in toward your next car rather than simply selling it. This can be a great option that potentially gets you more value for your vehicle than selling it would. Rather than getting money for the difference between the residual value of a lease or the current amount of a loan and the value of your vehicle, we can use that amount in addition to a down payment to reduce the cost of your next ride. If you need a new or used vehicle, this is likely the best choice to get you the most for your current car while ensuring you drive away in something great. Plus, if your lease isn’t worth selling, then returning it to us before starting your next lease might help you avoid some fees and payments.

We Are Here to Help With Everything You Need

No matter what kind of vehicle you have or what sort of financing it’s under, we are here to assist you with everything you need. We buy and sell cars every day, so we understand all the details involved, and we can make the process as simple and rewarding for you as possible. One of our friendly salespeople can answer your questions, explain every step of selling your vehicle to us, and handle all the paperwork and details so you don’t have to stress over anything. This ensures the entire process is as easy and straightforward as possible, and gets money in your pocket sooner. Even if you’re not sure about selling your car and just have questions about your options, we’re happy to help you with everything you need. Give us a call or bring your vehicle to us at Ruge’s Chevrolet today to explore your options and get what your vehicle is worth.