Very few of us are in the fortunate position to purchase a quality car in cold hard cash – no repayments, no interest-rate fluctuations, payment holidays etc. Most of us have had to sign a contract with a financial institution in order to buy a vehicle. But perhaps your circumstances have changed and you may now need to consider selling your car which is still being financed.
At Weelee, we are well accustomed to facilitating transactions between buyers and sellers for vehicles that are still under asset finance.
If you’ve come to the decision to scale up or are asking, “Should I sell my car or bakkie and scale down?”, then here is what you need to know when approaching this daunting, but viable option of selling your car for more.
The bank is ultimately the current owner and needs prior permission to sell
The first question you need to ask, before selling your car or bakkie, is, “How much is still outstanding on my vehicle loan agreement, at this current moment in time?” More commonly known as the settlement amount, honouring this final payment serves as an exit strategy from your binding financial agreement. Upon successful completion, it transfers ownership of the vehicle over to you, leaving you free to do as you please when selling to a willing buyer.
In reality though, few of us may be in the position to cover the outstanding balance at a moment’s notice. And this is where your most viable resale option comes into play.
Measuring trade value to estimate whether you gain or lose a buck
We’re definitely on the side of caution against a private sale when selling your car that is still financed. A private buyer is very unlikely to be prepared to inherit your complicated car repayment structure – (ain’t nobody got time for that!).
But before you consider selling your car, you will need to establish your car’s current worth – known in the auto industry as trade value. The best place to start is by submitting your car on Weelee and our expert consultants will advise you on your trade value and the offer you are likely to get.
Use the market to your advantage to sell for more
Once you’ve crunched the numbers and found yourself in a favourable position for selling your car or bakkie, it’s time to put the wheels in motion for getting the best deal out there. As discussed in our recent article – for those looking to sell – COVID has impacted the secondhand car market in the seller’s favour. Now has never been a better time to sell a high-demand used vehicle!
Say Farewell to Finance when you Weelee it
By choosing Weelee’s innovative online platform, your vehicle is exposed to not just one, but multiple pre-approved buyers who are willing to accept and handle the paperwork regarding the settlement amount owed on your particular vehicle.
Once you decide to accept an offer, the specific Weelee approved dealer will guide you through the processes and liaise with the bank should any money on the vehicle be outstanding. This is done to ensure the sale is hassle-free and secure.
If your car is no longer financed, the dealer will pay the offer in full – via EFT – to the legally registered owner of the vehicle.
If there is still an outstanding settlement on your car which is lower than the purchase price, the dealer will pay the settlement in full to the relevant financial institution and the remainder will be paid to the registered owner of the vehicle.
If there’s a settlement on your car which is higher than the purchase price, you will need to pay the remaining balance to the dealer in order for the dealer to settle the account fully (or, if arranged with the dealer, pay the remaining balance to the financial institution directly), so that the dealer can obtain the original registration document from the financial institution.