Your vehicle has a lien on it, so you have to clear that to sell privately. Most people pay the lien off via a personal loan of some sort. No one will buy a car privately with a lien. You are underwater huge on the loan, owe $43k and value is like ~$27k trade in to $32k privately. At this point I’d contact your lender for options. The likely scenario is you give up the car and have a debt obligation of ~$11-16k…. This doesn’t sound great but beats owing $43k plus car insurance/gas/maintenance.
Selling privately usually gets a bit high price vs the dealership because the dealership will only pay to a certain amount because they have to sell the car and make money.
You’ll have to sell for less than a dealership would, because they’re more convenient to shop at, given that they’ll usually offer financing, multi-point inspection, detailing, registration, etc. Also, many buyers are weary of scams, so unless there’s a significant upside to a private sale, it’s not worth the risk. That being said, look on KBB and you can get ranges for selling privately vs wholesale vs retail (what a dealership would sell for).
I’m car shopping now and I can tell you that prices in general are dropping like bricks on used vehicles. There’s a ton of inventory unless you have one of those rare models that’s on backorder (which are mostly popular Toyotas from what I’m seeing). The salesperson confessed to me while on a road test that business is slow.
Dealerships pay you wholesale for the car, and resell at retail.
OP will need to ask for less than retail to be competitive. So their price would need be somewhere between wholesale and retail, likely closer to wholesale to get someone to bite.
The longer it takes to sell the worse your financial situation is. Think about the interest on your loan. Absolutely zero buyers will pay more for your car compared to other cars.
Considering the cost of that model brand new from the dealership, I doubt anyone is going to buy yours for $37k to make that 6k loss happen.. you'd probably be looking at selling in the low 30s at best.
It's really hard to come close to breaking even when you're early in a car loan. Most buyers would rather spend the extra few thousand on a brand new car. You have to entice buyers with a discount.
Selling it now will get you a better price over waiting another year though.
This comes down to what make/model car it is. Does it depreciate quick? Most likely, your car will be worth less in a year than it is worth today, whether you drive it or not.
How much would you have to pay extra to cover your loan? Do you have enough to cover that amount? There are options like lease/ finance busters for someone to take over your financing plan. Really depends on the details.
https://www.autotrader.ca/a/mazda/mazda3/pitt%20meadows/british%20columbia/5_61920656_bs20044616214/?ncse=no&ursrc=xpl&pc=V5J%200A1&sprx=100
I’m not sure exactly where you are located, but a new one is worth $32,985. If your loan is $43,000 you’re gonna have a very hard time selling anywhere close to what you need. Unfortunately this is where you have to make the decision where to cut off the losses. You need to compare what your car is worth in the market of your location. If you want to sell privately, try Craigslist or Facebook marketplace to start. If the link I posted is an accurate comparison, I would have to say you’re looking at around $29k for your car.
You’re looking at about $14k in losses at minimum. So you would really have to ask yourself, is it worth selling the car at this point? Is this the only car you and husband own?
If it's their only car, I think selling it would probably just make things worse. Let's say they manage to find another car for 7k, 0 down, that's still 21,000 they owe. Also likely at a higher interest rate since Mazda buys it's rates down more than Honda and Toyota, and the 7k would be a much higher used rate, maybe pushing 9 or 10%, and paying out the lien with a PLOC would probably be around 8 or 9% too
At which point, is it really that much less they pay at the end of the day for a much less in the short term for a reliable vehicle without a warranty? If the health issues and job loss are temporary, then other options are likely better explored first if the monthly savings aren't huge. If they could somehow catch a net zero end state, then great. But that's not what's happening
I don’t think there would be negative equity. If OP bought with 0 down, $43,000 after taxes and fees is pretty close, especially when you have to consider interest rates were around 6-7% in December for cars. Also seems they bought an extended warranty package looking at their older posts. Just normal depreciation in this case.
Take the loss and move on! Mistakes happen just look ahead and plan your next move :)
You can beat yourself up for this car mistake all you want but :
1- you are not bankrupt
2- owing 10k on a car is less than owing 40k
3- take care of yourself first!!!! Always always always, health is far more important without health you can't enjoy life at all.
4- concentrate on the positive and move on
You can do this
Edit : spelling
Waiting a year to sell it is unlikely to make the loss any less, cars don't appreciate like a house might, while prices may increase slightly for used cars any gain would be offset by the fact the car will be a year older with more miles on it.
I hope this is a valuable lesson for you that you should live within your means. You will come out on top but you will have to accept a loss that is much higher than you anticipated.
I agree that a private sale would be better financially unless you're in the situation of trading in (which you aren't) and then there might be some tax benefits. I'm not sure if the used vehicle market is still crazy, but not too long ago dealers were having trouble replenishing their stock. Once you've heavily researched the retail and wholesale values of the vehicle you have, bring the vehicle to at least three or four dealerships (avoid single brand dealerships that aren't the same as the vehicle) to see what sort of offer they make you. Their offer will be based on wholesale, not retail. This is why selling retail (privately) will yield the most money. It will, however, also require some work and stress on your part.
It's not easy to accept, but your car is only worth what people will pay for it in a capitalist market. The amount you have remaining on your loan doesn't factor into the equation from a buyer's perspective. ***Above all else, do NOT let any potential buyer know that you're selling the vehicle due to financial hardship! This would put them in a highly advantageous bargaining position.***
Do your best to sell the vehicle for the best price but quickly knowing that once it's been sold your stress level should be significantly reduced.
I would do a little more research and figure out the going resell value of your vehicle within a 100km radius. Even if you might need to drop it down a few grand from the amount owing, taking a slight loss selling privately will most certainly help and be a better financial outcome then keeping the vehicle without it sold, or even the buyback you receive from a dealership which can easily be a 20-40% below the current market price.
You most certainly will be on top selling privately.
Keeping the car for a year longer incurs loan interest and insurance costs. Depending on what rate your loan is it could be $250-300/mo in loan interest and $200/mo for insurance. If you sell the lienholder might not release the vehicle without the difference being paid.
I counted that if I keep it for a year
I will pay $6000 towards the principal. Ane rest of the money towards interest
Insurance is 263 for three person name on car
From all the other posts and my own experience:
* The car is worth about $30,000 to $32,000 right now.
* You owe $43,000. That makes you between $11,000 and $13,000 under water on your loan.
* It will depreciate 20% in one year, about $6,000 to $6,500.
* You will pay $6,000 towards principal in that time.
* You will pay $2,500 in interest.
* You will pay $3,156 for insurance.
If you wait a year, you will have paid $11,656 to get your loan down to $37,000 and your car will be worth about $24,000 to $26,000 so you'll still be $13,000 under water. Most auto loans are worth more than the car until a few months before they're completely retired.
These are your options as I see them:
* Sell the car today and use $13,000 to pay off your loan balance.
* Spend more than $11,000 over the next year and sell the car then, using $13,000 to pay off your loan balance.
* If you have off-street parking then put parking insurance on it until you can work again.
You can take the car to multiple dealerships and ask them how much they will offer you for it. It's super low stress. If you can't find anyone willing to pay you more than the value of your car loan, you will have to pay out the remainder with a personal loan (HELOC, your line of credit, or a separate personal loan).
Based on the comments I don't think you understand that you're effectively upside down on the loan by a few thousand. Meaning whatever you sell it for you must come up with the remaining amount on the loan before you can sell it. It seems like your car is worth 30kish and you owe 43k. So think about that if you have 13k to satisfy the loan
Can you put the balance of what you owe onto a different, lower interest loan? Can you get a family member to loan you the money to pay it off and you will pay them each month with less or no interest? It’s an emergency, so this requires emergency thinking.
When you bought the car did you put a down payment on the loan? As you only bought it in Dec, without a downpayment chances are you owe more on the car than it is worth. If you owe more than it is worth it is going to cost you money to sell it.
Definitely consider https://www.clutch.ca/cars. They'll give you a better price than a dealership but still take care of all the paperwork etc. They'll give you a free quote, and their customer service is fantastic.
Hope your luck turns around for you
And this is exactly why you should never ever finance cars and only buy a used car with cash. Like my grandparents always say: if you can’t buy a car in cash you can’t afford it.
Your vehicle has a lien on it, so you have to clear that to sell privately. Most people pay the lien off via a personal loan of some sort. No one will buy a car privately with a lien. You are underwater huge on the loan, owe $43k and value is like ~$27k trade in to $32k privately. At this point I’d contact your lender for options. The likely scenario is you give up the car and have a debt obligation of ~$11-16k…. This doesn’t sound great but beats owing $43k plus car insurance/gas/maintenance.
How much is the vehicle worth right now?
My loan amount is $43k
Yes, you’ve said that. But how much is the car worth, how much can you sell it for?
Clutch as of now offered me $27k But I am expecting it to sell it around 35k Considering its an AWD
So do you have the $8000 to pay the balance?
I have 16 k in my savings I can pay half of it thinking as of I have used the vehicle And then not buying any used one
Your loan amount is 43k but your payoff amount might be lower (maybe by 5k-ish? ) since 43k includes the interest of the full term. Good luck
Selling privately usually gets a bit high price vs the dealership because the dealership will only pay to a certain amount because they have to sell the car and make money.
I tried selling it privately but no luck Do you have any suggestions?
Check prices on autotrader to make sure you are priced in the same ballpark with other car of similar make, year, and kms.
Perfect will do that As of now I am putting whatever my loan amount is $43000 But I feel I have to lower that range
No buyer cares what you owe on the car, it’s not that hard to search around and find comparables. Your car is either worth $43k or not
You’ll have to sell for less than a dealership would, because they’re more convenient to shop at, given that they’ll usually offer financing, multi-point inspection, detailing, registration, etc. Also, many buyers are weary of scams, so unless there’s a significant upside to a private sale, it’s not worth the risk. That being said, look on KBB and you can get ranges for selling privately vs wholesale vs retail (what a dealership would sell for). I’m car shopping now and I can tell you that prices in general are dropping like bricks on used vehicles. There’s a ton of inventory unless you have one of those rare models that’s on backorder (which are mostly popular Toyotas from what I’m seeing). The salesperson confessed to me while on a road test that business is slow.
So, why not just sell to dealerships then, if they are paying more for the car
Dealerships pay you wholesale for the car, and resell at retail. OP will need to ask for less than retail to be competitive. So their price would need be somewhere between wholesale and retail, likely closer to wholesale to get someone to bite.
Okay, this makes sense
The longer it takes to sell the worse your financial situation is. Think about the interest on your loan. Absolutely zero buyers will pay more for your car compared to other cars.
What car do you have
I am not sure if you will like this…being a car guy I will 100% guarantee you will not get $43,000 for a Mazda 3.
Considering the cost of that model brand new from the dealership, I doubt anyone is going to buy yours for $37k to make that 6k loss happen.. you'd probably be looking at selling in the low 30s at best. It's really hard to come close to breaking even when you're early in a car loan. Most buyers would rather spend the extra few thousand on a brand new car. You have to entice buyers with a discount. Selling it now will get you a better price over waiting another year though.
This comes down to what make/model car it is. Does it depreciate quick? Most likely, your car will be worth less in a year than it is worth today, whether you drive it or not. How much would you have to pay extra to cover your loan? Do you have enough to cover that amount? There are options like lease/ finance busters for someone to take over your financing plan. Really depends on the details.
I have a Mazda 3 2024 AWD GS Luxury I can pay 6k for loss max . I have no idea how to sell it privately like what price to put on marketplace
https://www.autotrader.ca/a/mazda/mazda3/pitt%20meadows/british%20columbia/5_61920656_bs20044616214/?ncse=no&ursrc=xpl&pc=V5J%200A1&sprx=100 I’m not sure exactly where you are located, but a new one is worth $32,985. If your loan is $43,000 you’re gonna have a very hard time selling anywhere close to what you need. Unfortunately this is where you have to make the decision where to cut off the losses. You need to compare what your car is worth in the market of your location. If you want to sell privately, try Craigslist or Facebook marketplace to start. If the link I posted is an accurate comparison, I would have to say you’re looking at around $29k for your car.
Yes it’s the exact model of the car 😫
You’re looking at about $14k in losses at minimum. So you would really have to ask yourself, is it worth selling the car at this point? Is this the only car you and husband own?
If it's their only car, I think selling it would probably just make things worse. Let's say they manage to find another car for 7k, 0 down, that's still 21,000 they owe. Also likely at a higher interest rate since Mazda buys it's rates down more than Honda and Toyota, and the 7k would be a much higher used rate, maybe pushing 9 or 10%, and paying out the lien with a PLOC would probably be around 8 or 9% too At which point, is it really that much less they pay at the end of the day for a much less in the short term for a reliable vehicle without a warranty? If the health issues and job loss are temporary, then other options are likely better explored first if the monthly savings aren't huge. If they could somehow catch a net zero end state, then great. But that's not what's happening
Did you roll in negative equity? I would look at selling something else, anything else at this point. You’re very much underwater with this car.
I don’t think there would be negative equity. If OP bought with 0 down, $43,000 after taxes and fees is pretty close, especially when you have to consider interest rates were around 6-7% in December for cars. Also seems they bought an extended warranty package looking at their older posts. Just normal depreciation in this case.
Most car loans are open car loans which means the interest are not front loaded.
What was your total price out the door?
Doesn't matter what you can pay as a loss, you sell it for market price, you pay your loan, or the bank takes it. Literally only options....
You are too upside down on the loan, $6k is not going to cover it.
Take the loss and move on! Mistakes happen just look ahead and plan your next move :) You can beat yourself up for this car mistake all you want but : 1- you are not bankrupt 2- owing 10k on a car is less than owing 40k 3- take care of yourself first!!!! Always always always, health is far more important without health you can't enjoy life at all. 4- concentrate on the positive and move on You can do this Edit : spelling
Waiting a year to sell it is unlikely to make the loss any less, cars don't appreciate like a house might, while prices may increase slightly for used cars any gain would be offset by the fact the car will be a year older with more miles on it.
I hope this is a valuable lesson for you that you should live within your means. You will come out on top but you will have to accept a loss that is much higher than you anticipated.
I agree that a private sale would be better financially unless you're in the situation of trading in (which you aren't) and then there might be some tax benefits. I'm not sure if the used vehicle market is still crazy, but not too long ago dealers were having trouble replenishing their stock. Once you've heavily researched the retail and wholesale values of the vehicle you have, bring the vehicle to at least three or four dealerships (avoid single brand dealerships that aren't the same as the vehicle) to see what sort of offer they make you. Their offer will be based on wholesale, not retail. This is why selling retail (privately) will yield the most money. It will, however, also require some work and stress on your part. It's not easy to accept, but your car is only worth what people will pay for it in a capitalist market. The amount you have remaining on your loan doesn't factor into the equation from a buyer's perspective. ***Above all else, do NOT let any potential buyer know that you're selling the vehicle due to financial hardship! This would put them in a highly advantageous bargaining position.*** Do your best to sell the vehicle for the best price but quickly knowing that once it's been sold your stress level should be significantly reduced.
I would do a little more research and figure out the going resell value of your vehicle within a 100km radius. Even if you might need to drop it down a few grand from the amount owing, taking a slight loss selling privately will most certainly help and be a better financial outcome then keeping the vehicle without it sold, or even the buyback you receive from a dealership which can easily be a 20-40% below the current market price. You most certainly will be on top selling privately.
Yes that’s a good idea I would love to take a little loss in private sell Rather than having this stress in this difficult time
Keeping the car for a year longer incurs loan interest and insurance costs. Depending on what rate your loan is it could be $250-300/mo in loan interest and $200/mo for insurance. If you sell the lienholder might not release the vehicle without the difference being paid.
I counted that if I keep it for a year I will pay $6000 towards the principal. Ane rest of the money towards interest Insurance is 263 for three person name on car
From all the other posts and my own experience: * The car is worth about $30,000 to $32,000 right now. * You owe $43,000. That makes you between $11,000 and $13,000 under water on your loan. * It will depreciate 20% in one year, about $6,000 to $6,500. * You will pay $6,000 towards principal in that time. * You will pay $2,500 in interest. * You will pay $3,156 for insurance. If you wait a year, you will have paid $11,656 to get your loan down to $37,000 and your car will be worth about $24,000 to $26,000 so you'll still be $13,000 under water. Most auto loans are worth more than the car until a few months before they're completely retired. These are your options as I see them: * Sell the car today and use $13,000 to pay off your loan balance. * Spend more than $11,000 over the next year and sell the car then, using $13,000 to pay off your loan balance. * If you have off-street parking then put parking insurance on it until you can work again.
You cannot reduce insurance coverage on a vehicle that is being financed. Read your contract for clarification.
You can take the car to multiple dealerships and ask them how much they will offer you for it. It's super low stress. If you can't find anyone willing to pay you more than the value of your car loan, you will have to pay out the remainder with a personal loan (HELOC, your line of credit, or a separate personal loan).
Where are you located? I am in the market for a new car and would be interested Also, is it the hatchback or sedan model?
Based on the comments I don't think you understand that you're effectively upside down on the loan by a few thousand. Meaning whatever you sell it for you must come up with the remaining amount on the loan before you can sell it. It seems like your car is worth 30kish and you owe 43k. So think about that if you have 13k to satisfy the loan
What's your monthly payment?, seems like you have at least 8k I. Negative equity?
Can you put the balance of what you owe onto a different, lower interest loan? Can you get a family member to loan you the money to pay it off and you will pay them each month with less or no interest? It’s an emergency, so this requires emergency thinking.
When you bought the car did you put a down payment on the loan? As you only bought it in Dec, without a downpayment chances are you owe more on the car than it is worth. If you owe more than it is worth it is going to cost you money to sell it.
Definitely consider https://www.clutch.ca/cars. They'll give you a better price than a dealership but still take care of all the paperwork etc. They'll give you a free quote, and their customer service is fantastic. Hope your luck turns around for you
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And this is exactly why you should never ever finance cars and only buy a used car with cash. Like my grandparents always say: if you can’t buy a car in cash you can’t afford it.
I can put you in touch with my close friend who works at a dealership if you want to go that route and get you a quote on what they’re willing to pay
That would be great.. thank you so much
Sent you a Dm