Selling a semi-truck that is still under finance can easily get complicated. Since it is still being under finance you are technically or legally not the owner of the truck. The ownership is transferred only with an agreement provided by your financing company. To be able to sell a semi-truck that is still under finance, the buyer and you have to come to an agreement. If you can come to a mutually beneficial agreement on your own terms you may be able to sell the truck at a better price.
Try to work out a private deal
There are ways to sell a truck even if it is under finance, although you have to consider many factors. You should review the truck finance contract you’ve signed and make sure to check every clause to see if there are any additional fees and charges that apply in these cases.
The current retailer price of the truck will affect your sale, bearing in mind any equipment or truck devaluation. The best option is to sale your truck privately but when you take into account all the previous loans you might still be stuck with a balance on your finances after the sale. Furthermore, bear in mind that selling the truck does not transfer the ownership.
Determine the current worth of your truck
You will need to appraise your semi-truck to determine its worth. Then contact your lender and determine the amount required to pay out your financed truck. Inquire whether there are any penalties for paying off the truck finance earlier that the contract specified. A payout company is under legal obligation to provide a payout amount should you request it. Let your financing company know that you are selling your truck and confirm the settlement price, and if your truck’s price is appraised to be less than what you owe the company, consider additional options on how to proceed with the sale.
Paying off your debt before selling
If the appraised value is less than the remainder of your debt, the most logical course of action is to pay off your debt to the truck financing company before you sell the truck. You will receive the document transferring the ownership of the truck to you from the company. This may persuade more buyers and you will be able to get a better price. A truck with an attached loan may repel and scare off most people looking to start a trucking business.
Negotiating an agreement with a truck dealer
One last thing you could consider is that you could go to a truck dealer and negotiate an amount for the truck. If the interest rate is cheaper for your truck, this might be a good option, and if you are trading an older truck for a new one, this is a good way to proceed. This will save you a lot of money as a newer truck requires less maintenance. Set a price that you will be willing to sell your truck for to avoid being dragged into a bad deal.
Go Capital is the number one semi truck financing expert specialized in providing capital on Semi-Trucks and Trailers. We provide solutions tailored to our customers’ needs and we operate in all 50 states. We boast unmatched customer service and the ability to deliver a truck that you will love. Our success is reflected in our repeat and referral business. For any details contact us through our online form or at (855) 396-3600.