Selling a Car with a Loan or Lease? Here’s How Bidbus Handles the Paperwork
One of the most frequent questions we get is: "Can I still sell my car through the auction if I don't own it outright?"
The short answer is absolutely. Whether you have a loan from a credit union or a lease from a manufacturer, you can still use the Bidbus platform to get top dollar. However, the process works a little differently depending on your situation.
Here is everything you need to know about selling a vehicle with a balance.
If you have a loan from a bank or financial institution, the process is very straightforward. When a dealer wins your car at auction, they pay off your loan directly. What happens next depends on your equity:
Positive Equity: This is the best-case scenario. If the winning bid is $20,000 and you only owe $15,000, you have $5,000 in positive equity. Once the dealer pays off the bank, they cut you a check for that remaining $5,000. It’s your money to keep.
Negative Equity: Sometimes you owe more than the car is worth. If the winning bid is $20,000 but your loan is $25,000, you have $5,000 in negative equity. To close the deal, you will need to pay that difference to the dealer so they can clear the title with your bank.
Leases are a bit more "tricky" than loans. Unlike a loan, which is easy to break at almost any dealership, leases are specific contracts that often have restrictions.
Because of this, it is critically important that you list your vehicle as a "Lease" when setting up your Bidbus profile.
Why it matters: Not all dealerships have the authority to "buy out" a lease from a different manufacturer.
The Bidbus Advantage: By marking your car as a lease, we ensure it is seen by franchise stores and specific dealerships that have the power to break those contracts. We match you with the buyers who actually know how to handle your specific lease paperwork.
Our goal is to make the transition as smooth as possible. By being clear about your loan or lease status from the start, we can ensure you are matched with the right dealers who are ready to handle the payoff and get you your equity check fast.
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