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.
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 car title.
- Research the value of your vehicle. You can use free resources like Kelley Blue Book or Edmunds.
- 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 the title to 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. A licensed broker that offers end-to-end support, gathers affordable quotes, helps you switch plans, and will even cancel your old policy. The average Jerry user saves $879 a year on car insurance.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Can we sell a car that is on loan?
Can you sell a car with a loan on it? My son used to have a gambling addiction. He’s turned his life around and is now a social worker. That said, there is still some remaining gambling debt he has to pay but doesn’t have the money for. My wife and I have a loan on my car, but we want to sell it to help pay off his debt.
Dec 06, 2021
Can you privately sell a car with a loan?
How do you sell a car privately if it is not paid off? I’m moving out of Florida for a career opportunity, and I don’t plan on bringing my car with me. I haven’t paid off my loan, but my brother wants to buy it for work.
Dec 06, 2021
Is it possible to sell a car with a loan on it?
Can you sell a car you owe money on? Besides paying for my car loan, I have other expensive debts I need to pay for. I want to sell my car and use the money to pay off the other debt.
Dec 06, 2021