When selling a car, there a few things that can be offputting for a buyer. If you are missing keys or there is obvious vehicle damage, you are unlikely to attract a buyer. However, the most difficult challenge is not actually owning the vehicle. While the vehicle may be legally yours, if it is under any type of finance, the process of selling can become complicated. Selling a car where there is any money owed or it is subject of any finance arrangement, there is a juggling act between keeping the lender and your buyer happy. The Problems of Selling a Car Under Finance: The main difficulty of selling a vehicle under Nissan finance is centred around how the loan actually works. Standard loans have the vehicle as security, which means that if you fail to meet your repayments, the car could be repossessed by the lender and sold to recoup costs. Since the loan is applied to the vehicle, it is the responsibility of the buyer to repay the debt. However, since the outstanding balance is applied against the car, it will be encumbered during the sale process. The Options:
There are a couple of options to sell an encumbered vehicle, but it tends to be far more long winded. You will need to speak to your lender and explain how you will repay the loan balance. You may also incur additional fees if you are repaying the loan early. In most cases, you are not likely to have the money to repay the loan until you sell the vehicle and receive the cash from your buyer. This means that you would need to complete the transaction for the sale at the finance office. This would provide reassurance for your buyer that the encumbrance has been lifted. The simpler option is to speak to your Nissan dealer. You can arrange to trade in your vehicle against a new car, and the dealership can arrange a new finance deal. The Nissan financial services team can discuss your options and show you illustrations of how much a new finance deal would cost you each month. With special offers available periodically throughout the year, you may find that you are offered an even more attractive deal. This means that you can organise selling your car and any encumbrance, while you are shopping for your new vehicle. If you have outstanding finance on your vehicle, it is important, to be honest with any potential buyers. Trying to be vague or downright dishonest will not only cost you a sale but also potentially cause a number of legal issues. So, you will need to think about it carefully before you start advertising your vehicle. If you are interested in learning more about Nissan finance, you should speak to us. The Duncan Nissan team would be happy to answer any queries you may have and discuss the current Nissan car finance rates and offers.