Quote:
Originally Posted by D-REW
Ok i bought my car in May '08. Its a '08 TW FA5 with about 6,900 miles on it. I got it at first because my parents said they'll help me pay for it since im going to college and i was getting paid well enough at my job. so pretty much im splitting the car payment with my parents.
however, my family is going through some financial problems and I really dont care about a car right now. I would rather use the $479/month in some investments or help out my parents with bills.
so in my head im thinking I should probably sell my car and just get some daily driver beater thats good enough for at least 5-6 years til i graduate from college and get a better paying job.
but, how do I sell a car that im still paying for?? can someone please explain the process for doing this. especially with california laws?
and i know im stupid for buying the car in the first place. I was still in high school when I got it, and my mind was in some other place. Now that i matured and see more important stuff in life, I really dont need a brand new car right now. thanks for all the help.
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First off, your not stupid for buying the car... and I have zero knowledge of CA laws, just PA.
Second, whomever you financed the car through hold the title to the car. As mentioned prior, You can call them and get a payoff. Most financial institutions will give you a ten day payoff with a per diem amount. This is just like it sounds, if the car is payed off in ten days, this is the total amount you will owe. Keep in mind, it may take a few days for paperwork to clear, thus the wiggle room.
Third, You can sell the car privately, to an auto store ( dealership ), or use it as a trade-in. Just keep in mind, you owe your current lender then ten day payoff. I second the use of on-line services to give you an estimate of how much you car is worth privately, or trade..... But this leads to how strong your negotiation skills are. Selling it privately ( IN PA ) means collecting the money from the buyer, taking a short trip to the Department of Motor Vehicles and filling out a short form, and then paying off the loan...
....Here is a bit of a curve. IF you have found a car at a dealership, at a price you are more comfortable paying, but do not care for the amount they offer you for your current car, you can sell your current car to a private party and ask the dealership to do a COURTESY TRADE. Meaning, you pruchase the car from the dealership and the dealership handles the paperwork for you to sell your current car to the private party. There may be a small fee, but saves you the trip to the DMV and concerns over the private party's funds...
I beleve this is what you wanted to know.....
Other info you may be interest in....
What were the conditions of your loan? Did you put any money down? What term ( months ) is your loan. Can not exactly determine your situation without this info.
What I mean by this is IF you put money down and financed for a shorter term ( 36 months ), there is a better chance you will have equity in the car. IF not, you may owe more on the car than it is worth.
Without knowing your target budget, keep in mind a basic rule -- every 10k financed equates to approximately $200/month. This is a very basic rule and varies based on your credit ( which will influence the loan rate ).
SO, IF you find a car at 10k and have to roll in 3k of negative equity, your looking at a 13k car... At which your payment would be ~$260.
my $.02