How to Sell a Car with a Loan on It

If you have a car with a loan on it and you want to sell the car, there are a few things you’ll need to do in order to make sure the process goes smoothly. Follow these steps and you’ll be able to sell your car quickly and without any hassle.

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congratulates you on making the decision to sell your car! Loans can be a great way to finance a car, but they can also add some complications to the selling process. In this article, we’ll walk you through the process of selling a car with a loan on it, step by step. We’ll cover everything from figuring out how much your car is worth to getting the loan paid off and transferring ownership of the vehicle.

The Process of Selling a Car with a Loan on It

Selling a car with a loan on it can be a bit more complicated than just finding a buyer and handing over the keys. If you have a car loan, you’ll need to pay it off before you can sell the car. In some cases, you may be able to transfer the loan to the new buyer. However, if you still owe money on the car, you’ll need to pay it off first. Let’s take a look at the process of selling a car with a loan on it.

Step One: Determine the payoff amount

The first thing you need to do when you’re selling a car with a loan on it, is to find out how much the loan is for. You can do this by calling your lender or looking online for your account information. Once you have the payoff amount, you can start shopping around for potential buyers.

Step Two: Find a buyer and agree on a selling price

You’ve found a buyer and agreed on a selling price, so now it’s time to move on to the next step in the process: getting the car title. The car title is the official document that proves you own the vehicle, and it’s what the buyer will need to register the car in their name. If you have a loan on the car, the lender will need to be paid off before the title can be released. To do this, you’ll need to provide the lender with a copy of the sales contract between you and the buyer, as well as a check for the payoff amount. Once the lender has received these items, they will send the title directly to the buyer.

Step Three: Have the buyer apply for a loan

If the buyer is interested in taking over your loan, have him or her apply for a loan with the lender. The lender will most likely require a credit check. If the buyer’s credit is good, the lender will provide him or her with a “loan assumption packet.” This packet contains information that the buyer and seller must complete and sign.

Step Four: Close the deal

You’ve decided to sell your car, and you’ve found a buyer who’s willing to pay your asking price. Now it’s time to close the deal and transfer ownership of the vehicle. If you have a loan on the car, this process will be a little different than if you owned the car outright. Here’s what you need to do:

1. First, you’ll need to get a payoff quote from your lender. This will tell you how much money you need to pay off the loan in full.

2. Once you have the payoff quote, you can work with the buyer to arrange a time and place to meet. At this meeting, the buyer will give you the agreed-upon purchase price in cash or certified funds, and you will sign over the title of the car. Make sure to get a receipt for the payment!

3. Next, take the payoff quote and payment receipt to your lender and pay off the loan in full. Once the loan is paid off, the lender will release the lien on the car and send you a document stating that the loan has been satisfied. This document is called a “release of lien.”

4. Finally, go to your state motor vehicle department and transfer ownership of the car to the new owner by filling out a transfer of ownership form and paying any required fees. You will also need to provide them with a copy of the release of lien from your lender as well as any other required documents (these vary by state). Once everything is processed, they will give you a new title with the new owner’s name on it (this may take some time). Be sure to give this title to the new owner as soon as possible so they can register the car in their name!


The best way to sell a car with a loan on it is to work with a professional car buying service. They can help you get the most for your car and pay off your loan at the same time.

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