How to Sell a Car That You Owe Money On
- Pay off the remaining debt – possibly with the sales proceeds from your buyer, and any extra funds that you bring to the table (if your car loan is upside-down).
- Transfer title to the buyer in a way that is safe – and feels comfortable – for both you and the buyer.
How do you sell a car that is not paid off?
Enlist your lender in the sale
They hold title to the vehicle, and you can’t sell the car without it. Ask your car lender the best way to proceed so that you can pay off the loan and deliver the title to the buyer in the shortest time possible.
Can I sell my vehicle if I still owe money on it?
When you owe more than your car is worth, you have to somehow give the lender the difference between the sale price and what you owe. You can pay cash, if you have it, or you might have to take out another loan. Once that’s arranged and you’ve found a buyer, you can continue with the next steps.
How do you trade in a truck you still owe money on?
When the amount you owe on the car is less than the trade-in value, the process is pretty straightforward. Say you still owe $5,000 on a car, and a dealer offers you $6,000 for it as a trade-in. The dealer pays off the $5,000 loan for you, which releases the lien. Then, you transfer ownership of the car to the dealer.
How do you sell a vehicle that has a lien on it?
If the lienholder is a local bank or mechanic, you can arrange to meet the buyer and release the lien at once. The buyer will pay off the lienholder and give any extra money to you and you’ll get the title to sign over immediately. If the lienholder is not local, you can use an escrow service to sell your car.