Hey guys so I'm planning to sell my car and get a new one but I still have loan on the car, its unsecured loan though and nothing on the car, just wanna get opinions as this is my first time selling.
Whats the best way to go? I still have 8k owing on the loan and I could sell my car around 6-8k,
Do I go dealer? trade it to them and get a new loan and refinance my current loan with them aswell? or sell car privately and pay the loan and get a new loan?
exactly. a dealer will buy your car for $4k.
unsecured loan
you dont need to tell them as the vehicle will not show up on a PPSR report.
the vehicle is not the loan security
Do you really need another car?
It's an unsecured loan, sell the car then pay the loan.
Sell the car and don't pay of the old loan, put the cash towards getting your new car and get another loan for the remainder.
Do a PPSR on your car to make sure that even though you may have taken an unsecured Personal Loan out, the financial institution may still have recorded an encumbrance against your car.
Worked in the Motor Trade most of my life and can think of countless occasions when people who are trading are gob smacked to discover that there is an encumbrance against their car, as they purchased with a Personal Loan, which is silly anyway, as a P/L always has a higher rate of interest as in theory there is no asset as security.
How you finance your new car, and what you do with the funds you receive from the sale of your old car, is influenced by the interest rate you currently have on your present loan and the interest rate on the new loan.
Be wary of financing too much negative equity, if the sale price doesnt cover the payout on your present loan. You can dig yourself a very big hole which further down the track, will have to pay your way out of.
sell your car privately and pay the loan