How to Sell a Car Privately with a Loan

You’ve decided to sell your car privately, but you still have a loan on it. Here’s how to go about it.

Checkout this video:


If you’re looking to sell your car privately, there are a few things you need to be aware of – especially if you have a loan on the vehicle. In this article, we’ll walk you through the process of selling a car privately with a loan, so you can get the best deal possible.

When you have a loan on a vehicle, the lender has a lien against the car. That means they have a legal right to the vehicle and can repossess it if you default on your loan payments. So, when you sell your car, you need to pay off the loan first. Then, you can transfer ownership of the car to the new owner.

If you’re upside down on your loan (meaning you owe more than the car is worth), you may need to bring money to the table to pay off the remainder of the loan. You can do this by either getting a personal loan or using funds from your savings account.

Once you’ve paid off the loan, you’ll need to get a release of lien from your lender. This is a document that proves that your loan has been paid in full and that they no longer have any legal rights to the vehicle. Without this document, the new owner won’t be able to get insurance or registration for the car.

Once you have your release of lien, you’re ready to sell! Make sure to advertising your vehicle in places where potential buyers are looking – such as online classifieds websites or local automotive listing publications. You can also put up signs in strategic locations (like busy intersections) with information about how to contact you about buying the car.

Finally, when meeting with potential buyers, be sure to bring along all pertinent documentation – such as your release of lien and proof of insurance. This will help make the transaction go smoothly and avoid any issues down the road.


Before you can sell your car, you need to make sure that you have the title in hand and that the car is paid off. If you still have a loan on the car, you will need to contact your lender and have them provide you with a pay-off amount. Once you have the pay-off amount, you can then start to look for a buyer.

Gather all the required documents

Before you list your car for sale, you need to gather all of the required documents. This includes the title, registration, and loan paperwork. You will also need to have a recent copy of your insurance policy. If you have any maintenance records or warranties, those will be helpful to have on hand as well. Having all of these documents in order will make the selling process much smoother.

Once you have gathered everything, it is time to start preparing your car for sale. Give it a thorough cleaning inside and out. This will make it more appealing to potential buyers and help you get top dollar for your car. If there are any repairs that need to be made, now is the time to do them. Even small things like fixing a cracked windshield or repairing a torn seat can make a big difference in how much your car sells for.

Clean the car

A clean car will always sell better than a dirty one. Spend some time cleaning the exterior and interior of your car before taking pictures or showing it to potential buyers. This will give them a better impression of your car and make it more likely that they’ll make an offer.

Take pictures of the car

Before you start advertising your car, it’s important to take some good pictures of it. People shopping for cars online will want to see what the car looks like before they decide whether or not to pursue it further, so make sure your pictures are clear and give a good overview of the car. It’s also helpful to take pictures of any damage to the car, even if it’s minor, so that potential buyers know what they’re getting into.

Determine the value of the car

The very first step is to find out how much your car is worth. Look up the Kelley Blue Book value for your car and jot it down. This will give you a baseline price to start from when negotiating with buyers. But keep in mind, the Kelley Blue Book value is only a guide, and you may be able to get more or less for your car depending on its condition and other factors.


You’ve decided to sell your car, but there’s one problem: you still have a loan on the vehicle. You’re not alone. According to a recent study, about 30 percent of car owners have a loan when they sell their car. In this guide, we’ll show you how to sell your car privately with a loan. We’ll cover topics like how to prepare your car for sale, how to set a price, and how to find a buyer.

List the car on classifieds websites

Once you have paid off your car loan, you can list your car on classifieds websites like Craigslist or Autotrader. These are popular platforms where people looking to buy cars search for vehicles.

To list your car on Craigslist, create a post with several pictures of your car, a description of its features, and your contact information. You can also include information about the car loan in the post so potential buyers are aware that there is a lien on the vehicle.

If you list your car on Autotrader, you will need to create an account and then select “Sell My Car.” You will be prompted to enter information about your vehicle, including photos, and then you can choose whether or not to include information about the outstanding loan.

Once your car is listed, start promoting it online and through word-of-mouth to friends and family. You may also want to put up flyers in public places or park the car in high-traffic areas with a for sale sign.

Create a social media post

Selling a car privately can be a great way to get a higher sales price than trading it in. But if you have a loan on the car, there are a few things you need to do to make sure the process goes smoothly.

First, you’ll need to get a pay-off quote from your lender. This will tell you how much money you need to bring to the table at closing.

Next, list your car on sites like Autotrader or Craigslist. Make sure to include information about the pay-off amount in your listing.

When you find a buyer, have them send you a certified check or money order for the full amount of the pay-off quote. Once you have that in hand, you can sign over the title and hand over the keys!

Showing the Car

Private sales are a great way to get rid of an old car. You don’t have to go through the hassle of trading it in at a dealership, and you can sell it for a higher price than you would get from a dealer. If you have a loan on the car, there are a few things you need to do to make sure the sale goes smoothly. Let’s take a look.

Set up appointments with interested buyers

You’ve listed your car for sale, and now you have to show it to prospective buyers. Showing your car is an important step in the selling process, but it can also be stressful if you’re not prepared. Here are a few tips to make sure your showing goes smoothly.

Before you set up any appointments, it’s important to do a little bit of research on the person who will be viewing your car. You should always ask for a driver’s license and contact information before setting up an appointment. You can also run a simple background check on the person to make sure they’re not associated with any scams or fraud.

When you’re ready to set up the showing, try to pick a time when the buyer will be able to take a test drive. If they can’t take a test drive, they may not be seriously interested in buying your car. Choose a public place for the meeting, like a coffee shop or parking lot, and make sure you bring someone with you for safety.

During the showing, be prepared to answer any questions the buyer has about the car. They may want to know about its history, maintenance records, and features. If you don’t know the answer to a question, don’t try to fake it – just be honest and say you’ll look into it and get back to them.

And finally, don’t forget to negotiate! Asking price is just that – an asking price. The buyer will likely try to lowball you, so be prepared with a counteroffer. If you can reach an agreement on price, you’ll both sign a sales contract and exchange money (or arrange for financing) at that time.

Go for a test drive

Before you sell your car, you’ll need to give it a thorough cleaning, inside and out. Not only will this help it to look its best, but it will also give you a chance to check for any potential issues that might need to be addressed before selling. Once you’ve cleaned your car, you’re ready to go for a test drive with potential buyers.

When showing the car, be sure to point out any features that may be of interest, such as aftermarket additions or recent repairs. If the buyer is interested in taking the car for a test drive, be sure to go along for the ride. This will give you a chance to answer any questions they may have and get a feel for their driving style.

Negotiating and Closing the Deal

You’ve found a buyer for your car and you’re ready to close the deal. Congratulations! Selling a car privately can be a great way to get a higher price than trading it in, but it also comes with a few more steps and a little more paperwork. In this section, we’ll walk you through everything you need to do to close the deal, from negotiating with the buyer to getting the right paperwork.

Negotiate the price

Car buyers will often try to get the best deal possible, and as a result, you may have to negotiate the selling price of your vehicle. The best way to do this is by having a target price in mind that you are comfortable with and willing to walk away from the deal if the buyer does not meet your price. It is also important to be prepared to negotiate by being familiar with the market value of your vehicle as well as any comparable vehicles that have recently sold.

Close the deal

Once you and the buyer have agreed on a selling price, it’s time to close the deal and get the car off your hands. But before you hand over the keys, there are a few things you need to take care of first.

First, you need to cancel your loan with your lender and get the lien released. If you don’t do this, the buyer won’t be able to get their own financing and they may back out of the deal. Make sure to give yourself enough time to do this – it can sometimes take a week or more for the lien release to come through.

Next, you need to transfer ownership of the vehicle. This usually involves going to your local DMV office and filling out some paperwork. You will also need to pay any outstanding fees or taxes that are due. Once this is all taken care of, you can give the buyer the keys and bid them farewell!


If you have a loan on your car, you’ll need to pay it off before you can sell the car. You can usually do this by going to your bank or credit union and asking for a payoff quote. You’ll need to provide them with your car’s make, model, year, and VIN. Once you have the quote, you can arrange to have the funds wired to your bank so you can pay off the loan. Once the loan is paid off, you’ll be free to sell the car privately.

Similar Posts