Can I sell my car if I still have a loan on it?

I want to sell my car to buy a new one, but I still have a loan on it. I have positive equity, so I think I should be able to, but I’m just not sure. Can I still sell my car if I have an outstanding loan balance?

Answer
Great question! Since you have positive equity, you can almost certainly sell your car even if you have a balance on your car loan.
When you sell the vehicle, the proceeds will go toward the remaining balance on your loan and you can pocket the rest.
The best way to complete this process is by bringing the buyer into your bank or credit union. The lender will then guide both parties through the transaction and do the paperwork so you don’t forget any of the steps.
If you’re in the market for a new car, keep in mind that you’ll need to get it insured. To do this easily, check out the Jerry app—we’ll get you customized quotes from top insurance companies in a matter of minutes. That way, all you need to do is pick the plan that works best for you!
Best of luck with selling your car!
Eric Schad
Answered on Nov 22, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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