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Are you losing money on your financed car?
Motorway got a London-based marketer nearly £15,000 more than she was quoted elsewhere to sell her financed car.
Most of us in the UK would rather take a bad deal for our car than negotiate – but we could be losing out on thousands.
Selling your car isn’t normally something you’d think about until it’s time for a new one. But your car - even with outstanding finance - could be a more valuable financial asset than you think.
Research by Motorway reveals that 65% of us accept we will always lose money when selling our cars, potentially because a quick sale is preferable to us than the idea of haggling with buyers, without a sale guaranteed.
Drivers of some financed cars may not even realise that they can sell their car to a dealer, who will clear their outstanding loan before the end of their contract. This can be a great way of getting value out of your car, especially if you are in what is called ‘positive equity’ - when your current vehicle valuation (or final sale price) is higher than your outstanding balance.
One motorist in London recently made 23% (£13.6k) more than what a dealership had offered her in a part exchange deal, and 9% more than another online car sales platform, by selling her car on Motorway.
Even though her 18-month-old hybrid Porsche was in perfect condition, a Mercedes dealership gave her a below-market value offer of around £53,000 and advised the seller that she would struggle to do better. She then received a guaranteed quote from WeBuyAnyCar of £61,000.
When she profiled her car on Motorway, where over 5,000 verified dealers compete to buy privately owned vehicles, she saw a much higher valuation. Entering her car in the online sale with a reserve price of £61,000, she ended up selling her car for over £66,500!
The seller said, “I was astounded to see the price difference [between the dealership and Motorway]. I perhaps anticipated a couple of thousand more, but £13k was beyond my wildest expectations. I’ve always made sure to take good care of any car that’s been in my ownership, and I’ve always felt that this should be reflected in the sale value.
“However, I’ve also been conditioned by the general perspective that you instantaneously lose thousands on your car upon purchase. From seeing what I was able to get for my car on Motorway, I know now this isn’t the case. I’ve told all my friends about it – I actually can’t quite believe it.
“I’ll be using the money for the deposit on my next car, which has saved me a lot of trouble. Finances are hard across the board at the moment so getting as much money as I could for my old car was vital.”
Ease and convenience are two of the most important factors in any sale, with lots of sellers accepting trade-in deals with their lenders, going directly to an instant buyer, or making a quick private sale on a classifieds marketplace, without checking for a better deal.
Unveiling the UK’s grievances when selling their cars, Motorway’s extensive network of over 5,000 verified dealers means motorists don’t have to compromise on time, price, or convenience when selling their cars. Since the process is 100% online, they can do so quickly, from the comfort of their own homes.
For an instant and free valuation of your car, simply enter your reg and mileage on the Motorway website. You’ll see what your car could fetch on the marketplace and can compare it to your balance to settle with your finance lender to see if you could make money by selling your car.
Sell your financed car in three easy steps:
- Ask your lender for a settlement letter. This will show you the outstanding balance on your finance.
- Value your car for free on Motorway to see whether it’s worth your while to settle your finance early. If the balance is higher than the valuation, you’ll have to pay a little extra back to your lender, whereas if you’re in positive equity, you keep the surplus.
- Enter your car into Motorway’s online daily sale, where you can have a sale agreed within 24 hours with a verified dealer. If you accept their best price at the end of the sale, the dealer will clear your outstanding finance directly with your lender, and pick up your car from your home, for free.
When you sell your financed car on Motorway, verified dealers compete to give you your best price.
