How to Sell a Car That Has a Loan

You can sell your car even if you still have a loan on it. Here’s how to go about it so you can get the most money for your car.

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Everyday, more and more Americans find themselves upside down on their car loan. They owe more money to the bank or other lender than the car is actually worth. It’s a difficult financial position to be in, and it can make selling the car seem impossible.

Interestingly, though, it is possible to sell a car that has a loan. You just have to be willing to work with the buyer a little bit and be realistic about the value of your car. With some effort, you can sell your upside down car and get out from under that monthly payment.

The Process of Selling a Car with a Loan

Once you have decided to sell your car, the first thing you need to do is pay off the loan. This can be done by going to your bank or lender and requesting a payoff quote. The quote will include any outstanding interest and fees, as well as the remaining principle on the loan. You will need to pay this amount in full before you can sell the car.

If you are still making payments on the car, you will need to contact your lender and request a release of lien. This document proves that you have paid off the loan and allows the new owner to register the car in their name. Without a release of lien, the new owner will not be able to register the car.

Once you have paid off the loan and have a release of lien, you can then sell the car like any other used car. You will need to provide potential buyers with all of the necessary paperwork, including a bill of sale and proof of ownership. It is also a good idea to get a vehicle history report so that buyers can see that there are no outstanding issues with the car.

Tips for Selling a Car with a Loan

If you own a car outright, selling it is simple — you just find a buyer and transfer ownership. But if you still have a loan on the car, the process is a little more complicated. You’ll need to pay off the loan first, and then you can sell the car.

If you’re selling a car with a loan, here are a few tips to help you through the process:

-First, find out how much your car is worth. This will give you an idea of how much money you need to pay off the loan and how much profit you can make from the sale. Use an online tool like Kelley Blue Book or Edmunds to get an estimate.

-Next, check with your lender to see if they have any restrictions on selling a car with a loan. Some lenders may require you to get permission before selling, or they may prohibit selling altogether.

-If everything checks out, start advertising your car for sale. Be sure to mention that there is a loan on the vehicle so potential buyers are aware of the situation.

-When you find a buyer, arrange to meet in person so you can sign over the title and hand over the keys. You’ll also need to get a release of lien from your lender so the new owner can register the car in their name.

Selling a car with a loan can be a bit of a hassle, but as long as you do your research and preparation ahead of time, it shouldn’t be too difficult.


In conclusion, selling a car that has a loan is definitely possible, but there are a few things you need to be aware of. Firstly, you will need to pay off the remainder of the loan before you can sell the car. Secondly, you may need to find a buyer who is willing to take on the loan themselves. And finally, you will need to be prepared to negotiate a lower price for the car due to the fact that it has a loan attached to it. With all of this in mind, selling a car with a loan should not be too difficult as long as you are prepared and have done your research.

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