Can I Sell My Car To Carmax If I Still Owe On It?

Selling your car with outstanding payments

As a car blogger, I know that selling your car while there are still outstanding payments can be a daunting task. However, it is possible to do so, and CarMax is one of the companies that offers this service. It’s important to note that selling a car with outstanding payments is not the same as selling a fully-owned car, there are certain factors that come into play.

Understanding negative equity and how it impacts your selling price

When you owe more money on your car than it’s worth, it is referred to as negative equity. Negative equity is a common situation when you are selling your car while there are still outstanding payments. It occurs because car values depreciate over time, while the amount owed on the car remains the same. This situation can potentially impact your selling price, as buyers may not be willing to pay the full amount that you owe on the car.

At CarMax, we understand that negative equity is a common issue when selling cars with outstanding payments. We take this into consideration when making an offer for your car. Our aim is to give you a fair and accurate offer that takes into account the negative equity on your car.

Financing your new CarMax vehicle with negative equity

In certain cases, it is possible to include the negative equity in the financing when you purchase a new CarMax vehicle. This is done to make the transition smoother for you, as you can pay off the outstanding balance on your old car and start fresh with a new vehicle. It’s important to note, however, that this option may result in a higher monthly payment than if you were to purchase a vehicle without negative equity involved.

Calculating the gap between your payment and CarMax’s offer

If negative equity cannot be included in the financing when you purchase a new CarMax vehicle, we will calculate the gap between your payment and our offer to you. This means that we will subtract the amount you owe on your car from the offer we make for your car. The difference between the two amounts is referred to as the gap. It’s important to note that this gap must be paid before you can sell your car to CarMax.

Making payments to CarMax directly

Once the gap has been calculated, you will be required to make payment to CarMax directly. This payment allows us to pay off the outstanding balance on your car, enabling you to sell it to us without any issues. If the amount you owe on your car is less than $250, we will require payment in the form of cash, check, or credit card. If the amount exceeds $250, we will accept personal checks.

Acceptable forms of payment for outstanding car payments

At CarMax, we make it easy for you to make payments for your outstanding car payments. We accept various forms of payment, including cash, credit cards, and personal checks. It’s important to note, however, that some restrictions may apply depending on the amount you owe on your car. In general, we require payment in full before we can complete the purchase of your car.

In conclusion, selling your car to CarMax with outstanding payments is possible, but it requires some additional steps. It’s important to understand the concept of negative equity and how it impacts your selling price. At CarMax, we take negative equity into consideration when making an offer for your car. If you decide to purchase a new CarMax vehicle with negative equity involved, we’ll work with you to ensure a smooth transition. Finally, we accept various forms of payment for outstanding car payments, making it easy for you to sell your car to us.

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