PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How Do You Sell A Car Privately When You Still Have a Loan?
I found a buyer for my car on Craigslist, but I’m still paying off the loan for my vehicle. How can I privately sell my car with a loan amount still owed?
Matthew Macgugan · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Selling your car to a private party with an existing
car loan
is a bit more involved than selling to a dealership. The exact steps you’ll need to take will also depend on your state’s applicable laws.The main issue: You’ll need to transfer the title to fully sell your vehicle, but your lender possesses the title until your loan balance is satisfied. You’ll need to have their permission before you can transfer ownership of your vehicle.
Work with your lender to facilitate the sale: If you finance from a local institution or bank, then you can likely take the buyer to this location, have them pay you for the vehicle, and pay off the remaining loan amount all in a single visit. The buyer leaves with the vehicle and its title and you leave with some cash.
If your loan is provided by a larger lender with no local locations: You will likely need a temporary operating permit from the DMV or use an escrow service to allow the buyer to drive the vehicle until full ownership is transferred.
Before you try selling your car: Check the value of your car on a site like
Kelley Blue Book
. If you owe less than the car is worth, you’ll likely make a profit selling your car. If you owe more on the loan than the car is worth, you are upside down
on your loan and will have to pay the difference to your lender.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.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
