Auto Loans and Financing

How do you sell a car to a private party if you owe much more on the car than it is worth?

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Wiki User
2006-08-09 15:19:43

You'll need to work with the bank and establish a way to pay

back the difference between the sales price and what is currently

owed. You'll need to take out a signature loan or pay off the

difference before you sell the vehicle. If you are unable to get

what the car is worth when selling to the private party, then you

need to eat the difference. Get a loan from your bank to pay off

the difference so the title can be free and clear for the new

owner. In the future, never buy new. Always buy used. Let someone

else eat the deppreciation.

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