How to Sell Your Vehicle When You Have a Loan

If you’re looking to sell your car but you still have a loan on it, you may be wondering what your options are. In this blog post, we’ll go over some of the things you need to keep in mind when selling a car with a loan.

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If you have a loan on your vehicle, you’ll need to pay it off before you can sell the vehicle. In some cases, you may be able to sell the vehicle for less than you owe on the loan and use the proceeds from the sale to pay off the loan. However, if you owe more on the loan than the vehicle is worth, you’ll need to come up with the difference in order to sell the vehicle.

Research the Vehicle’s Worth

The first step is to find out how much your car is worth. This can be done by visiting, Kelley Blue Book, or These websites will allow you to enter your car’s make, model, and year, and then give you an estimated range of what the car is worth. You can also check local classified ads to get an idea of what similar vehicles in your area are selling for. Once you have an estimate of your vehicle’s worth, you can start working on paying off the loan so you can sell it.

Determine How Much You Owe

The very first step you need to take is to find out exactly how much you owe on your loan. You can do this by contacting your lender or by looking online for your most recent loan statement. Once you know how much you owe, you can start exploring your options for selling the vehicle.

If you still owe quite a bit on your loan, it may be worth considering trading in your vehicle to a dealership. This way, you can use the value of your trade-in towards the purchase of a new vehicle. Keep in mind, however, that you may not get as much for your trade-in as you would if you sold it privately.

If you own your vehicle outright, or if you only owe a small amount on your loan, then selling itprivately will likely give you the best return on investment. You can list your vehicle for sale online or in classified ads to reach the widest audience of potential buyers.

Find a Buyer

The first step is to find a buyer for your vehicle. You can do this by advertising it online or in a local newspaper. Be sure to include information about the loan in your ad so that potential buyers are aware of the situation. You might also want to consider trading your vehicle in to a dealer. This can be a good option if you owe more on your loan than the vehicle is worth.

Once you have found a buyer, you will need to have the title to your vehicle transferred into their name. The lienholder (the company you have your loan with) will need to be listed as the lienholder on the title. In some states, you will also need to provide the buyer with a lien satisfaction letter that states that the loan has been paid in full and that they are now the sole owner of the vehicle.

Negotiate the Sale

When you have a loan, you’ll need to pay it off before you can sell the car. To do so, you’ll need to contact your lender and request a payoff amount. Once you have the payoff amount, you can start negotiating with potential buyers.

If you’re still making payments on your loan, the buyer will need to assume the loan. This means they’ll take over the responsibility of making the monthly payments. The buyer will also need to qualify for financing through their own lender.

When negotiating a sale price, be sure to account for any outstanding balance on the loan. The buyer should pay this amount directly to your lender as part of the sale. You’ll then be free and clear of the debt and can use any remaining proceeds from the sale as you wish.

Pay Off the Loan

The first step to selling your vehicle when you have a loan is to pay off the loan. You can do this by either selling the vehicle yourself and using the proceeds to pay off the loan, or by trading in the vehicle at a dealership. If you sell the vehicle yourself, make sure to get a payoff quote from your lender so you know how much you need to sell the vehicle for. If you trade in the vehicle, make sure to let the dealership know that you have a loan so they can factor that into their evaluation of your trade-in.

Once you have paid off the loan, you will be free to sell your vehicle without having to worry about satisfying a lender. You can use any proceeds from the sale to pay off any other debts or bills you may have, or simply keep the money for yourself. Congratulations on being debt-free!

Get the Title Transferred

The process of selling your car when you have a loan is similar to the process of selling any car. You’ll need to find a buyer and agree on a price, then sign over the title and hand over the keys. But there’s one extra step in the process if you have a loan: you’ll need to pay off the loan and get the title transferred into your name before you can sell the car.

If you’re upside down on your loan, meaning you owe more than the car is worth, you may still be able to sell it, but you’ll need to come up with the difference between what you owe and what the car is worth in order to pay off the loan. Once you’ve paid off the loan, you can then sell the car like normal and use the proceeds to cover any shortfall.

1. Find a buyer for your car. You can list it for sale online or in classified ads, or try selling it yourself by going from dealership to dealership.

2. Get an estimate of your car’s value so you know how much money you’ll need to pay off the loan. You can find this information online or by talking to a dealer.

3. negotiate a selling price with the buyer. Once you’ve agreed on a price, have the buyer sign a purchase agreement and give you a deposit so there’s no backing out of the deal.

4. Pay off your loan with the money from the sale. You’ll need to bring a cashier’s check or money order for the full amount of the loan, plus any fees associated with paying it off early, such as prepayment penalties or outstanding interest charges.

5. Get the title transferred into your name at your local DMV office so you can give it to the buyer when they come to pick up the car


Selling your vehicle when you have a loan can be a difficult process, but it is possible. You’ll need to make sure you have all the necessary paperwork in order, and you’ll need to be prepared to negotiate. It’s also important to be realistic about your selling price – remember, you’ll still need to pay off the loan even after the sale. But if you’re patient and careful, you can successfully sell your vehicle and pay off your loan.

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