Selling Your Used Car – When Car Payments Are Weighing You Down
Everyone knows that car payments can be outrageous these days and sometimes you get to a point where it’s impossible to make the payments for one reason or another. Maybe you’re interested in selling your used car for cash in Honolulu but aren’t sure if this is possible if your car isn’t paid for yet. At CarMark Hawaii we do buy vehicles regardless of whether they’re paid for in many situations; we also have some information below you may find useful if your payments have become unaffordable.
First of all, discuss your situation with your lender. Most would rather work with you than take possession of the car, so explain the problem you’re having with your lender. Many lenders will work with you by either extending the number of monthly payments so that they’re lower and more affordable or allowing you to make lower payments for a period of two or three months or even skip one or two if you’re normally a good customer. You never know what options are available if you don’t communicate with the lender.
Know your situation. What is the value of your car, how much do you owe on it and what is the interest rate? Knowing what the numbers are will tell you whether you have positive or negative equity. If your car is worth more than what you owe on it, you have positive equity which means you’ll more options if you cannot afford your car payments.
If you find you have negative equity (or in other words, you owe more than what your vehicle is worth), here’s what to consider. Perhaps you can save on other monthly costs such as auto insurance, satellite service, cell phone, etc. Look for other areas where you may be able to make up the difference. You should also consider speaking with your lender to see what might be possible or pay the difference between what you owe and your car’s value so that you can trade it in for something more affordable or sell your vehicle to a dealer or individual.
Having positive equity in your car means you can trade it in for a cheaper vehicle or sell it to a dealer. Depending on how much you could sell your car for, you may want to think about using the cash you get to purchase an older used vehicle so you don’t have a payment at all. With positive equity, you may be able to get a lower interest rate or extend the term of the loan by shopping around banks, credit unions, or online lenders.
Depending on your individual situation there are some options to consider. You’re not alone; there are lots of people who reach a point where they can no longer afford high monthly car payments.
At CarMark Hawaii we buy used cars in Honolulu for cash, paid for or not. If your vehicle is a 2011 or newer model, give us a call today to find out what we can do for you.