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How do I sell a car under loan?
How do I sell my car when I have a loan? My husband had intensive surgery to remove a mass from his stomach. The medical bill is very costly, so I want to sell my car to help cover the expenses. My car has a loan, so I’m not sure how to sell it.
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Wow, that certainly sounds like an intense surgery—I hope the surgery went well! To sell a car under loan, you must bring your buyer with you to your lender’s office to complete the transaction.
This is what you need to do to sell your car with a loan on it:
- Contact your lender and ask for the payoff amount for your loan. Paying off the loan is the only way to remove the lender from the cartitle.
- Determine your equity. To calculate this, subtract the payoff amount from the estimated current value of your car. If this number is positive, you can sell the car, pay off the loan balance, and keep the remaining amount. If this number is negative, you will need to sell the car, pass the proceeds along to your lender, and pay the remaining balance of your loan out of pocket.
- Transfer thetitleto the buyer. You may want to provide a bill of sale, as well. This will finalize the sale of the vehicle!
If you decide later on to buy another car, take time to learn how you can save money on car insurance with
Jerry
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- Gregory R.
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