Personal Finance

Selling a financed vehicle

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  • Mar 20th, 2014 9:42 am
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Deal Fanatic
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Nov 2, 2013
5697 posts
1522 upvotes
Edmonton, AB

Selling a financed vehicle

Have a little dilemma. I have a 2012 Toyota Tundra. Awesome truck, and I've relied on it heavily to get through the harsh Alberta winters. I used to work on the rigs as well as up north in the oilsands and a truck was essential to getting to such places.

However, though I made respectable money, this year was bad for the oilfield and I made much less than I expected. I'd make $10k+ in one month and then have only one week of work in the next (in my case, it was January). I took a risk to take time off to make money and when I look back, experience and networking aside it didn't seem worth it. I also lost money moving many times to switch companies when one did not have work.

So now I just want to sell it and finish off my schooling first before I come up with other ideas, as it seems too risky of an industry for my liking. I also don't want to be weighed down with monthly payments.
The problem is I'm having a hard time finding someone to be approved for a loan for it, and the amount owing is probably just a little high to be competitive.

The options I see otherwise are:
1) Just keep it since it is very useful, and use my saved money to cushion the monthly payments during my time in university. I can use it to find work in the oilfield whenever I need to, just in case. If I alternated school/oilfield work I realize I can save towards a property down payment very quickly, though this is dependent on oil prices, CAD, and the oil companies' finances (which tend to be cyclical)... and such income would have to offset the upkeep cost of the truck.
2) Trade it in for a SUV/car that is more practical for the city (the truck is a bit high to get into some indoor parking lots, is difficult to park, and very hard on fuel in the city), though I'll take a significant negative equity hit that'll make my new loan even more unattractive and be throwing money away.

Unless I'm missing something?
Accountant (Public Practice)
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Mar 2, 2010
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Talk to the dealer and see if they are willing to buy it back. You may take a one-time hit (if they buy back at a much lower price), but no more payments after that.

Other option is to just sell it like a used car. When you have a finalized buyer, pay off the remaining car balance fully (borrow from LOC or friends... For a few days) and then transfer the title to another person. This might be better than selling back to the dealer as private sales generally offer more than dealers.

Keeping the truck is your decision. But if it does not get used much and sits for a a year or two while you are in school, it would just depreciate in value.

Lastly, if you trade in this for another car, you would save HST or tax on the car you purchase. Depending on the price of the car, less money offerred by dealer may give you net same benefit in your pocket.

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