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How can I sell my car with a loan on it?
I’ve had the same car for a few years and I’m ready to upgrade. My old car still has a loan on it, so I wasn’t sure if that was a possibility or if I needed to pay off the loan first. How do I sell a car if I still have a loan on it?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
The good news is that you can certainly sell a car, even if it has a
car loan
. However, whether you have positive or negative equity can make a huge impact on how you go about selling the car.If you have positive equity, your options are wide open. You can sell the car privately and use the proceeds to pay off the loan and use as a down payment on a new vehicle.
If you have negative equity, you can still sell your car, but you may end up further upside down on your new car loan. For negative equity sellers, you have these options:
- Pay the difference between the sale price of the old car and the remaining loan balance to clear the loan
- Work out a payment plan with your lender
- Roll over the old loan into the new one
If you sell your car privately, just make sure to research the Kelley Blue Book value of your car and determine how much you owe on the loan. This can help you price your vehicle correctly to entice sellers while maximizing the sale price.
After you sell the car, remember to switch your car insurance to the new vehicle by searching rates on the Jerry app.
As a licensed broker,
Jerry
helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
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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