How am I supposed to sell my financed car?

Flexible car loans at an advantage How to Sell a Financed Car

The residual debt risk: After asking the dealer about the residual value of his convertible and his bank about the amount of the residual debt, Mr. Bauer is amazed: the residual debt is significantly higher than the residual value of the car. There is of course a reason for this: a new car usually loses value particularly quickly in the first few years. The remaining amount of an installment loan often falls much more slowly during this time. It can happen that the sales proceeds are insufficient to pay off the remaining debt.

In principle, for example, he could simply use his existing loan stock up. It is up to the bank to decide under which circumstances it offers this option. If the vehicle serves as security, they would have to accept the new vehicle as security accordingly.

It could be even more interesting to transfer the remaining debt of the old car loan to a new, to reschedule higher loan - and thus finance the new car. This means that Mr. Bauer could also benefit from the lending rates that have now fallen again.

However, he decides to wait a few more months with the new car. In the meantime, his fixed-term deposit contract expires. Together with the sales proceeds, the money is finally enough for the new vehicle. Until then, he will also save some money by rescheduling the old loan to a cheaper loan. With the new loan, he will another benefit Use: Mr. Bauer is now married and will take out the new loan together with his wife - the joint income is higher than his alone. So the chances are good that the bank will take this into account when assessing its creditworthiness and the interest rates will be even cheaper.

Every case is different: How cheap loans are and the conditions under which they can be redeemed or rescheduled always depends on many different causes. Only those who maintain a good overview of personal circumstances and compare them correctly will usually find the best solution. In any case, Mr. Bauer shouldn't wait too long with the new loan. After all, nobody knows when lending rates will rise again.