Many people sell their cars by trading them in for a new car, and putting the money from the old towards the new. Others sell their old cars directly to used-car lots, or sell them on consignment. Still others sell their old cars to people who have taken out a loan to pay for the car. If you’re in a situation where you need to approve a buyer’s loan before you’ll sell your car to them, you need to keep several things in mind.
You want to approve your buyer’s loan because it means you’ll be able to sell your car. However, you are on your own in this case, and if anything falls through with the financing you’ll be left holding the bag. In order to make sure that doesn’t happen, you need to do as much verification as possible on the buyer’s loan. Assuming, of course, that you’ve already verified the buyer’s credit report is in good standing, you should also take a closer look at their lender. If they have not obtained the report yet, you can tell them to secure a free credit report online.
Evaluating the lender who is behind your buyer’s loan will require some analytical skills. If it’s a a bank, read up on the bank, and get a sense of their fiscal health – as everyone knows, banks are in critical condition these days, and are closing left and right. Is your buyer’s bank in trouble? That’s important to know. You also need to go over your buyer’s loan contract yourself, and make sure that it’s solid.
In order to learn more about selling your car privately and approving your buyer’s loan, be sure to speak to an auto industry professional or loan expert. When attempting to approve a loan for a large amount, you should try and seek as much help as you can. You should also seek out consumer protection organizations on line and see what they have to say.