Before selling your car, find out how much your car is worth using the Kelley Blue Book (kbb.com) or another resource. If your car is leased, then you should call the finance company listed on your monthly statement and ask for the total amount to buy the car and terminate the lease. Decide the lowest price that you would accept for your car.
If you still owe money on the car, compare the value of your car to the amount left on your loan. If your car is worth more than the loan and you have enough money to pay off the loan, you can pay off the loan, then sell your car. If you do not have enough money to pay off the car loan before finding a buyer, you can use the buyer’s payment to pay off the loan and keep the difference as profit. You will have to get permission from your lender(s) to make the sale in order to transfer clear title to the buyer. If the car is worth less than the loan, consider surrendering the car to the lender instead of selling it. In this case, you will still owe the lender any amount remaining on the loan unless you work out a deal with the lender. Make sure to receive a document evidencing all transactions and any new deal made with a lender.
You can sell your car to another person using online or paper classified advertisements, word-of-mouth, or other available services. You can also sell your car to the original dealer or another certified dealer who sells or leases the type of car you currently have. You may also sell your vehicle to a used-car dealership. In some cases, choosing to work with an experienced dealer can be easier.
If you lease your car, it may be easiest to sell your car to the original dealer or another certified dealer who leases the same brand of car. Specifically, you would:
- Call the lease finance company listed on your monthly statement and ask for the total amount to buy the car and terminate the lease (the “Buyout/Termination Amount”).
- Go in person with your car to the original dealership where you leased the car or any other certified dealership which leases the same brand of car. Tell them you want to get out of your lease and ask if they would want to purchase the car for equal to or more than the Buyout/Termination Amount.
- If yes, then they can work directly with the lease finance company to purchase the car and pay off the lease.
- This can usually be done within 2-3 business days.
- If the purchase price is more than the Buyout/Termination Amount, the purchaser will give you the difference.
Before allowing a potential buyer to test drive the car, make sure that your insurance policy covers test drives.
Put the sale terms in writing and get the payment from the buyer in cash or a certified check to limit the chances of fraud before giving the keys or transferring the title to the buyer.
File the necessary forms for transferring title and for sales tax purposes.
If you don’t have time to sell your car before you leave, you could give a limited Power of Attorney (POA) to a trusted friend and ask the friend to sell the car for you. You will have to give your friend the signed vehicle title to give to a buyer.
See these websites for more information on selling your car: