My friends bought a new car while the car they just paid off is in the shop (no, I don’t know why they would do such a thing either…) They’re finances are very tight and I think they’re really regretting their rash decision.
How would they go about selling their new Mazda before the first payment is due? Would a company like CarMax buy it from them? Would it be better to advertise for someone to assume the note?
Can a new car be sold before the first note is due?
17
Apr
rebel g
April 17, 2010 at 8:50 am
They would have to sell it for what is owed on it and pay the note off. The note has to be cleared before they can transfer the title to the new owner.
Barry N S
April 17, 2010 at 9:31 am
It can be sold but you have to have the title to sell it so it means you’d have to pay for the car in full and … once you take possession of the car it becomes a “used” car and you will not get what you paid for it.
sundragonjess
April 17, 2010 at 10:22 am
It can happen, but it’s going to be very hard for them to sell it for what they owe. New cars depreciate so much just as you drive them off the lot….it’s ridiculous!
matty_mo1
April 17, 2010 at 10:28 am
They can but the problem is that since no payments have been made, they will only get market value for the vehicle (since it is used) and there will be a lrage gap in terms of what they still owe on it.
sharpshooter
April 17, 2010 at 11:11 am
The chances of them getting full price for the car are very slim. Why buy “used car” for the same price you can get the same car new. My advice is to try and make the payments while trying to sell it you might get a taker, or advertise it for someone to take over payments……Goodluck with that
FRANK
April 17, 2010 at 11:58 am
sure a car can be bought or sold anytime…BUT: unless they made a down payment in amount to offset the depreciation, tax if any, license cost, and anything else they financed, it’s unlikely they can sell that car for an amount necessary to pay off their auto loan. don’t forget that the only reason a company like car-max may purchase the vehicle is to make a profit, therefore they’d need to but it for considerably less than they can sell it for. If a person (like your friends) could buy a similar car new, there would need to be a price incentive to buy a used one…… re: assumption, the bank needs to agree on the customer to assume it, and your friend remains liable till paid in full…….good luck
smartwomen
April 17, 2010 at 12:12 pm
Technically they can not sell it because they do not actually own it. It is unwise to try and sell a vehicle that has a dealers lein on it. Unless they can find someone who is willing to assume the loan totally, I think they are sol!
Sane
April 17, 2010 at 12:42 pm
This should make NO difference to their financial situation. They simply get back into a car payment like they had a month or two ago before they paid off the old car. Idealistically, they should have traded the old car in, but their best move now would be to keep the new car, sell the old car, and if they wanted to, they could refinance the new car with the money they get from the old car and get a lower payment. If they attempt to sell the new car, they will take a loss of 20% of the original purchase price minimum. Unless they out down a boat load of money they will never sell the car for enough to pay off the note. They can sell the car one hour after they bought it, there is no law against that but no one will pay them enough for it to satisfy the note. NO, never let someone else assume the note!! They will still be responsbile for it and if the assumee bails or fails they have the problem back in their lap.
Lori K
April 17, 2010 at 12:46 pm
It would be impossible for them to get the entire amount of their loan from CarMax. Cars depreciate as soon as you take them off the lot. I’m afraid they are either stuck with their decision, or they are going to have to fork over a chunk of change to sell the car.
Rebelicious
April 17, 2010 at 1:44 pm
yes