How do I sell a car with a loan?

I have a loan on my car, but I want to sell it. Is there any way that I can sell a car with a loan?

Answer
Great question! You can sell a car with a loan—but once you sell it, you will have to pay off the loan immediately, instead of paying it off in increments.
Before you do this, make sure you know the total interest paid so far; this can help you understand how much you’ve paid and how much you have left on your loans and interest.
The best way to think of it is if you owe $10,000 for a car and sell it for $12,000, then you pay back the remaining balance and pocket the $2,000 that’s leftover.
However, you will have to pay it off in a lump sum, so make sure you have enough to pay off the rest of your loan after you sell it!
Also keep in mind that you’ll need to get a new insurance policy for your new car, when you do buy one. To do this easily, check out the Jerry app—we’ll get you customized quotes from top insurers in seconds, so that all you need to do is pick the plan that works best for you. And once you pick one, we’ll even help you switch!
Best of luck, and enjoy living your loan-free life!
Will Baldwin
Answered on Nov 29, 2021
Will Baldwin is a graduate of Ryerson’s School of Journalism with three years of experience writing and freelancing for multiple publications including The Globe and Mail. With a deep interest in geography, economics, and politics, he has come to be extremely interested in the relationship of personal finances and culture with the auto industry as one of the forefronts of his interest. When not writing, he’s an avid sports fan who splits his time between watching too much basketball and having his heartbroken by the New Orleans Saints. Will is based in Toronto, Ontario.
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