It's not unusual to want to buy a new car when your present one still has a loan on it. Maybe the car is beginning to have problems, or you just want a change.

When you don’t have the cash to pay off the loan on your present car, it is possible to sell a car with a loan to a dealership.

Here’s how to sell a car with a loan, with a little help from

car insurance

comparison and broker app

Jerry

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Know what your car is worth

An easy way to estimate the value of your car is to check

Kelley Blue Book

. Fill out the form with the year, make, model, and mileage. Submit the initial form and continue to answer the questions about your specific vehicle. Ultimately, you will be shown your estimated values for trade-in and sale to an individual.

Kelley Blue Book also offers a feature to start the trade-in process online, which is one way to sell a car with a loan to a dealership. It is, however, advisable to

explore all options

before making a commitment.

MORE: How to sell a car online

Know what kind of car you want

Most likely, you want to buy another car once you sell a car with a loan to a dealership. So, you should do some research and get an idea of what your next car will be. It's often simpler to trade in your old car with a loan to the dealership where you're buying your next car.

MORE:

How to sell a car

Visit several dealerships

Combine your shopping for a new car with your shopping for a dealership to sell your old car and the remainder of its loan. Visiting as many dealerships as possible will yield the most options. This way, you can pick the best deal for you.

Be frank with the representative from the dealership about the amount of the lien on your car that you want to sell, what car you want, and the payments you can potentially make on a new car. Also, make the Kelley Blue Book value of your car known. Transparency will not only smooth the process but also show you are knowledgeable and prepared.

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Strike a deal to sell a car with a loan to a dealership

Once you have a few offers on the table, pick the one that yields the best sale price of your present car relative to the financing deal that you get. Don’t be afraid to negotiate; the worst that could happen is you are told no.

Be aware that the amount of your loan is a major factor in striking a deal. The dealership, in buying a car with a loan, absorbs the cost. So, for a car with a trade-in value of $10,000 and a loan of $5,000, the best case scenario is to sell that car to the dealership for $5,000. There are a lot of factors in selling a car with a loan to a dealership, but it is possible to strike a deal that makes all parties happy.

Also be aware that whenever you get a new car, you'll need to ensure that you have the best insurance coverage. For the best deal on that, try using the

Jerry

app. A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy.

And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.

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