In an ideal world, we’d all love to sell our cars when they are fully paid up, looking to upgrade
or downscale. However, life happens and situations may prompt you to sell your vehicle
sooner rather than later. Deciding to sell your car is not an easy decision, more so when it is
a financed car.
So, what do you do when you need to sell your financed vehicle? A financed
vehicle is not yours and legally belongs to the bank or any financial institution that gave you
a vehicle loan. This is because your repayment term has not been concluded and the
settlement amount is still owed.
HERE IS WHAT YOU SHOULD DO
STEP 1 - KNOW YOUR SETTLEMENT AMOUNT
Request a settlement letter detailing the amount paid and the amount outstanding.
Once that has been done, determine if you can afford to settle the amount owed.
STEP 2 - SETTLE THE AMOUNT
If you’re financially unable to settle the amount, this is where the trading in a financed vehicle
journey begins. You would begin by establishing its market value.
STEP 3 - ESTABLISH VEHICLE MARKET VALUE
Research the vehicle’s brand, make and model to determine its comparative prices as well
as popularity. All these factors will give you a clear indication of whether you’ll be paying out
of pocket for the shortfall or if will you have change left.
Visit an Auto Pedigree dealership to
evaluate the vehicle to offer a sound market value amount. If the price of the vehicle sells for
more than your settlement amount, you could use the money left as a deposit for your next
However, if the market value of the vehicle is less than the outstanding amount, the
shortfall would have to be paid from your pocket. A payment plan may be discussed with
STEP 4 - PAPERWORK
Once the settlement amount has been received, a settlement letter will be handed over to
you closing off the debt.
Auto Pedigree has a wide range of vehicle options to choose from when considering a trade-in. Visit any of our nationwide dealerships here https://www.autopedigree.co.za/dealers