Do you find yourself in the situation where you financed a car that you no longer want? It’s not an uncommon situation to find yourself in, and thankfully, you have a couple different options on how to deal with it. Your options for getting rid of the vehicle primarily depend on your own preferences and what the remaining balance on the auto loan may be. If you purchased a car that has more than 75% of the financing remaining, it may be a good idea to do the following:

1. Get an appraisal of the actual car’s value – This can be done on a number of reputable online websites.

2. Decide whether to sell the car or to use it as a trade in.

Get An Appraisal Of The Car’s Value

It’s hugely important to know the value of your vehicle no matter how you choose to get rid of it. The actual value depends on the age and condition of the car. Assuming the car under finance is in resell condition, the value of the vehicle should be adequate to sell it at a good price. Use the cash from the sale to pay off financing or at the time of purchase of a new vehicle as a trade in. One tip to remember is to always know the manufacturer’s price to the dealer of any car. This gives buyers a good indication of costs added to the dealer’s price as well as bargaining advantage. The process of getting rid of a car definitely requires good planning and having accurate information at your fingertips. Therefore, knowing the actual value of the car you financed is a means of negotiating trade-in finance terms to your advantage.

Sell Or Trade In?

Selling your vehicle provides needed cash to pay off the remaining financing. If the value of the car isn’t sufficient for a full pay off, check with the GAP insurance that covers remaining balances after a car has been sold and the final finance payment has been credited to you. GAP insurance is usually part of most financing agreements for auto loans. Check your original finance documents to learn if this was included. When it comes to a trade-in, knowing your car’s value, is a bargaining edge when you purchase another vehicle. Otherwise, the dealer of the newer car may decide for you what the older car’s value may be.

Another option is to lease or rent your vehicle with option to buy. This is the least expedient method of getting rid of your financed car.