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How can I sell a car with a loan on it?
My wife and I are looking to get a different car, but we need to sell our current car to afford it. I need to know how to sell a car with a loan on it.
Michael Miserendino · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Let’s hope you’re much happier with your new car this time around!
Selling a car
with a loan on it is fairly similar to selling a car normally; you just need to find someone who can refinance your car loan in their name.Since you still have a loan on your car, your lender likely holds the title in their name. You won’t be able to sell your car outright, given the status of the title. First, you need to discuss the payoff amount with your lender as well as other details about the sale.
Since the payoff amount is how much you owe, you will also want to find out the actual price of your vehicle to see how much money you will pocket after the sale. You can do this online through
Kelley Blue Book
, Edmunds, or Autotrader. Once you have the full value, subtract the payoff amount from the researched price and you will have a fairly accurate profit margin.
Once you know the possible profit margin of your car, you can negotiate the price with a potential buyer more effectively. Be sure to inform your buyer that their credit, income, and debt-to-income ratio need to be able to support refinancing the loan in their name.
You can always try selling it back to the dealership to simplify the process.
Once you do get a new car, remember to budget for car insurance. Lenders will require full coverage car insurance on a financed vehicle. Try using the number-one-rated car insurance app,
Jerry
, to find the lowest rates. Jerry compares personalized rates from more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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