Selling an unwanted car is a hassle at the best of times, but things can get a bit sticky when there’s still money owing on the vehicle. If you’re in Melbourne and wondering, “Can I sell my unwanted car if I owe money on it?” the short answer is: Yes, you can! But it’s not as straightforward as selling a car that’s completely paid off. In this article, we’ll break it down for you in simple terms, Aussie-style, so you can get rid of that old heap and maybe even score some cash for it.
If your car is financed, it’s likely tied to a loan, which means the lender has a financial interest in it. This is called a “security interest.” Until the loan is fully paid off, the car technically belongs to the lender. But don’t worry—it doesn’t mean you’re stuck with it forever.
Selling a financed car in Melbourne isn’t impossible, but it does require some extra steps. Let’s explore how you can offload your unwanted car for cash and deal with any outstanding loan at the same time.
First things first, you’ll need to contact your lender and find out how much is left to pay on the loan. This is known as the payout figure. This amount includes the remaining balance on the loan, plus any fees or interest that might apply if you pay it off early.
Next, find out what your car is worth in today’s market. You can check online valuation tools or get in touch with a service like Cars Wanted Melbourne. They specialize in buying unwanted cars for cash and can give you a fair price for your vehicle, whether it’s running or not.
Here’s the kicker: if your car’s value is higher than the payout figure, you’ll walk away with extra cash in your pocket. But if the payout is higher than the car’s value, you’ll need to pay the difference to settle the loan.
Transparency is key. If you’re selling your car privately or to a professional buyer like a cash-for-car service in Melbourne, let them know the car has finance owing. Reputable buyers, such as Cars Wanted Melbourne, can help sort out the logistics of paying off the loan, often directly with your lender.
Selling your unwanted car to a cash for car service in Melbourne has its perks:
1. Quick and Easy Process: They handle the paperwork, including dealing with your lender.
2. Instant Cash: You get paid on the spot, making it a hassle-free experience.
3. No Need for Repairs: These services buy cars in any condition, whether it’s a shiny ride or a clunker that’s seen better days.
4. Free Car Removal: Many services offer free towing, so you don’t have to lift a finger.
1. Is it legal to sell my unwanted car if I still owe money on the loan?
Yes, it is legal, but not simple. The car has a “security interest” attached by your lender (usually noted on the PPSR). You must settle the outstanding loan amount in full before the new owner can take legal possession of the vehicle.
2. What is the very first step I should take before selling my unwanted car?
The first essential step is to contact your lender for the current payout figure. This amount includes the remaining principal balance, plus any interest or fees incurred by paying off the loan early.
3. What happens if my unwanted car is worth less than the loan amount I owe?
If your car’s valuation is less than the loan payoff amount (you are “underwater”), you will need to pay the difference to your lender out of your own pocket to clear the finance before the sale can be finalised.
4. Can a car buyer or wrecker in Melbourne pay off the loan for me?
Yes, reputable services like professional car buyers often handle this directly. They deduct the loan payoff figure from your car’s selling price and remit that amount directly to your lender, giving you the remaining cash (if any).
5. What is the PPSR and should I check it before trying to sell my unwanted car?
The PPSR (Personal Property Securities Register) is a national database that verifies if there is a security interest (loan) against your car. You should always check it, and be prepared to show the buyer the clearance once the loan is settled.
6. Is selling a financed unwanted car privately easier or harder than using a professional service?
Selling privately is much harder, as most private buyers won’t touch a car with money owing. Professional buyers have established procedures for managing the finance payoff and legal documentation, making the process much simpler and faster for you.
If you’re stuck with an unwanted car in Melbourne and wondering how to sell it, Cars Wanted Melbourne is your go-to. Whether you’re dealing with a broken-down ute, a car that’s past its prime, or a financed vehicle you just want gone, they’ve got you covered.
Quick Cash: They pay top dollar for cars, on the spot.
All Conditions Accepted: Whether it’s running or a total wreck, they’ll take it.
Professional and Friendly: No mucking around—just straightforward service.
Ready to sell your unwanted car for cash, even if there’s money owing? Don’t let that old heap sit there collecting dust. Get in touch with Cars Wanted Melbourne today for a quick, no-obligation quote. They’ll make the process simple, take care of the details, and leave you with a wad of cash in hand.
Call us on 0451 101 985 or visit carswantedmelbourne.com.au to get started.
So, what are you waiting for? It’s time to bid farewell to that unwanted car and say hello to some extra cash in your pocket!
