Selling Sonic private party. How does it work?

[m3t4lm4n222]

Before I note what I am planning to do, I want you to keep in mind that I am 20 years old. This is my first ever car purchased from a dealer and I limited knowledge of how taking out a loan really works.

So here it goes...

I purchased my Sonic back in August of 2014, brand new, for about 19K total. After my down payment, I owe'd 17K. It's a 2014, well optioned out LT with MyLink, Backup camera, 6MT, etc. After much deliberation, I decided to buy the car.

Here we are 6 months later..tax returns and some bonuses are coming in within the next couple of weeks and well..I don't really have much passion for it.

Don't get me wrong, it's a good car but I am just not in love with it. I had a 1991 Ford Festiva before this car that I actually had more of a passion towards. I think it's a combination of still owing $15K on the car that's worth maybe 12K now and the fact that the M32 Manual transmission is..well..janky in my opinion. The multy inertia flywheel makes the transmission feel jerky, I am already (3,500 miles in) experiencing a 2nd gear grind and driving it just isn't that exciting.

Anyways, I am having deep thoughts about taking my tax returns and bonuses that are coming in, applying them to what I owe on the car and trying to sell it Private party. My real question is, how does this work. If I owe 15K on the car, can I sell it private party for ~12k, get the cash, pay the car off for 15K and give it to the person who purchases it from me? Will the warranty carry over?

Another option would of course be, to trade it in, but at that point I would be breaking even, as it looks like this Sonic is only worth a whopping 10.5K with trade in (According to KBB.com)

Thanks guys!

 

[rodslinger]

Generally you just take money, sign over the title and hand them the keys, title and bill of sale.

But you have a problem. You don't have title to it yet. While not impossible you are going to find a much smaller market of buyers that are willing to buy a car from someone that doesn't have clear title to the car. Many won't risk handing over money and taking possession only on a bill of sale gambling that the seller will actually pay off the note and deliver the title later. Of the buyer is taking their own loan their lender may not fund until they can verify a clear title either.

If you want to private party sell it you need to shuffle some cash around to get that car paid off and have title in hand. It will be a lot easier. Otherwise take the loss and trade it.

 

[laborsmith]

Welcome to car buyer school. You are about to learn a rough and expensive lesson.

Selling private party normally needs the note to be paid off. Sometimes you can arrange to meet the buyer at their credit union of choice and all those financials can be done there and all at once, but emphasis is on sometimes.

Buyers remorse can be a killer. Because a private party buyer has access to the same tools you do, and will look at trade in value as the top price, unless you have an option that buyer wants and can not find close by.

You can tell what I would suggest and I know you will not like it, but hey, you are only twenty and you have an obligation to mess up, else wise how will you learn?


Laborsmith

 

[busterbrown]

Oh, man! That's about the worst decision you can make on an entry-level small car: buy new and sell within 6 months. Your best bet is to mitigate your depreciative losses, keep your Sonic for another 2 years, drive it like you stole it, then sell it before your trans drops out at 36,000 miles.

FWIW, I bought my '14 LTZ two weeks ago for $13K with 3,500 on the clock and I would maybe break even if I sold today. But since I'm having loads of fun with it and enjoy driving it, I plan on keeping it for a number of years. Good luck with whichever decision you make.

 

[m3t4lm4n222]

Thanks for the helps guys. I have some decisions to make, that's for sure lol.

 

[dkennedy1989]

I have been in the same boat with you with my '13 RS because I only purchased it due to driving so much for work, but now live really close and want to get back into the keeping world. I bought the sonic a year ago and kbb is saying my '13 RS with all the options is only 13k.

 

[m3t4lm4n222]

Yeah. I'm still trying to decide what I want to do. I'll have about 4K in savings soon, I owe 15.4K on the car, it's Private Value is apparently around 12.5K, trade in just below 11K.

I've only had the car for 7 months now, not enough time to build credit, just enough time to let the car depreciate by about 8K lol.

I mean, like I said. I had more passion for my 1991 Festiva and 1990 Toyota Corolla than I do for this car. Maybe I just like driving ****boxes? Maybe it's not having payments. I don't know lol.

Maybe I just need a Trifecta Tune.

 

[Topaz blue turbo]

Thats the spirit!!!

Trifecta tune and an exhaust!! Plus your under warranty for the next 96000 miles if its grinding take it to the dealer. I got 12k on my 14 and I drive it very spirited you might say but my trans feels like its new.

 

[Swordsmith]

SO I see several problems here for you.

One, you bought a new car. This is how new cars work; you pay a huge amount of money and have something that is worth far less than you paid, in terms of resale value. Cars, with very few exceptions, are an expense, not an investment. But selling your car isn't going to change that; right now you will have to fork over even -more- cash to get out of it, compared to just making payments. Next time you buy a car, maybe you buy a used one again, something you can pay cash for. But look at what you're proposing; spend another 4 grand on getting out of this car plus another what, 4 grand on a used POS?

You also complain about the transmission grind. I agree, that sucks. But it only sucks a little. As far as we can tell there are no real world problems caused by that grind, 60K miles of rough driving haven't made mine get any worse (and I have a spare transmission waiting on my porch, because I was certain this one was gonna die right away). There is also the option of replacing the transmission, only about one in ten seem to have the grind... and maybe if you tell the dealership that you are replacing it because of the grind you can get them to agree in advance that if the new one also grinds, they will replace that one for free. Since this isn't a warranty covered issue according to most dealerships, you'll have to pay for the replacement... but that isn't even a $1000 job, much cheaper than the 8K you are proposing to spend on getting into a beater.

Second, get a tune. Seriously, the 1.4T is a nice engine on its own, but Chevy has deliberately haltered it in order to make the drive consistent. A tune will let the engine really give you what it's got available.

Third, new tires. The tires sold on the Sonic simply suck. Worst thing about the car. This doesn't have to be expensive, a few hundred bucks for some decent tires will really change the handling and safety levels of the car dramatically

 

[m3t4lm4n222]

You definitely have some good points Swordsmith. This car cost me 18K-19K brand new. It's now work about 11K trade in, 13K private party. I owe $15,300 on it now. I have 4K in savings that I could throw at it and off-load it. But then you're right. It's going to take me another 4-grand to get a beater. The advantage of course, being no commitment and lower insurance costs, which would save me upwards of $600 a month.

The disadvantage would be having thrown 7K-8K down the drain in less than a year. It seems like the depreciation really lowers after the first year, as I am seeing 2012-2013 sonic's with 30K+ miles on them going for about 9K-10K right now.

 

[The Champ]

The advantage of course, being no commitment and lower insurance costs, which would save me upwards of $600 a month.

You aren't factoring the increased maintenance costs of the $4,000 beater. Right now you have a bumper to bumper warranty for 3 years/36,000 miles and a 5 year/100,000 mile powertrain warranty. Right now, you don't even have to pay for oil changes...

If you buy a $4,000 beater, you will be putting money into it in the next 3 years just to keep it operational.

I'm willing to bet that your overall cost of ownership will be less by keeping what you have and driving it for at least 3 years vs. trying to dump and spending $8 grand to get out of your Sonic.

Use that $8 grand to pay down your Sonic instead and you'll have your car paid off early. Then you won't have payments and it will still be under warranty.

Get a tune and enjoy your new car.

 

[m3t4lm4n222]

So this is a basic question, but if you trade in a car to a dealership, would they pay off the car.

Lets say a dealership offers me 11,000 for a car and that's how much I owe on it, do they simply pay off the loan?

 

[laborsmith]

Yes the dealer pays off the loan and if more is owed than what they are willing to pay they add the difference to the new car loan.

And if that is the event, interest rates climb almost exponentially. And in this era of low gas prices, cars such as the Sonic plummet in value: notice Orion has scheduled two complete weeks of down time over the next several weeks to adjust inventory to meet demand and truck plants are working overtime.

Buyers remorse is never cheap.


Laborsmith

 

[mitdr774]

Right now, you don't even have to pay for oil changes...

How do you come to this conclusion? Last I knew oil changes were the responsibility of the owner, unless some special deal was worked out at the time of sale. This isnt some high end car that has the cost of "free oil changes" already worked into the price.

 

[laborsmith]

I believe Chevy is currently offering this as part of a new sale but for 24 months not life of ownership and requires a certain percentage of oil life be reached. If one changes oil every 10-12 thousand miles or once a year or if one is clever and changes oil w/o resetting oil life on the DIC it could be a consideration.


Laborsmith

 

[mitdr774]

Ah, a sales gimmick. Free is never actually free when it comes to cars though.

 

[laborsmith]

Yep, a true sales gimmick and correct, nothing is ever free when it comes to life, er, cars.

Laborsmith

 

[jgrote]

My dealer "gave" me 3 free oil changes when I bought the car. You're right though, I have to be < 10% oil life left to get it. Got my first one for free, but won't be going back. Selling a car with a loan is no big deal. Just ask your lender what the process is. Or keep it, tune it, mod it, beat it, have fun with it, break it, rinse and repeat.

 

[The Champ]

How do you come to this conclusion? Last I knew oil changes were the responsibility of the owner, unless some special deal was worked out at the time of sale. This isnt some high end car that has the cost of "free oil changes" already worked into the price.

Oil changes for the first 24,000 miles are included with the purchase of a new Sonic - and the OP's Sonic was purchased new.

That's why I said "for right now".

That's 4 free oil changes based on one every 6 months or 6,000 miles. Even at only $30.00 per oil change that's a $120.00 freebie.

 

[carsNskis]

Thanks for the helps guys. I have some decisions to make, that's for sure lol.

Honestly it's not a tough decision. Losing thousands of dollars in a short time frame is not a wise choice. Don't waste your hard earned money...

If you pay it off and lose $5000 to sell it you'll always regret that move. If you drive the car a few years and wait for your loan and car value to get closer to the same number you can sell or trade at that time and find something you like better.

Here's my burning question: what happened between the moment you bought and now? Did someone tell you it was a bad deal, internet soured your opinion of the car, decided you really wanted something faster.... etc? Whatever it was ignore it and enjoy your car. Appreciate that it gets good mpg and it's not going to cost a penny in maintenance and when the time comes when you have a better paying job and better credit do your homework on your next choice and don't make a purchase on an impulse