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

I have a $3,000 balance on my car loan, but I'm looking to sell it. What happens to the loan if I sell my car? Can I sell my car even if I have a loan?

Answer
Yes, you can sell your car even if you still owe on your car loan. However, you should take the necessary steps to make sure you get top dollar for your car, as well as follow the right path to paying off your loan and going through any legal requirements.
To sell a car with a loan on it, follow these steps:
  • Use Kelley Blue Book or Edmunds to determine the retail value of your used car
  • Get the payoff amount for your loan
  • Compare the two to make sure you sell it for enough to pay the loan or at least make it manageable
  • Contact your lender to set up a meeting to sell the car
  • Collect the money, transfer the title
That’s about all there is to it. You may also have to cancel your car insurance or transfer your car insurance, depending on whether you’re getting a new car.
If you’re going to get a new vehicle, shop around for car insurance to save some cash. By using the Jerry app, you can compare dozens of quotes for the coverage you require.
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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