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 when you have a loan?
My 47th birthday is coming up and I want to sell my car so I can upgrade and buy my dream car. The only issue is that I still need to pay off the loan. How do you sell a car with a loan on it?
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
That’s so exciting; congratulations on buying your dream car! Although it might seem impossible to sell a car when you have a loan, you can trade in your vehicle with a dealership.
Here is how you to sell or trade your car with a loan on it:
- Determine your payoff amount. Contact your current loan lender and ask what your payoff amount is. Paying off the loan is the only way for the lender to no longer have alienon the vehicle.
- Calculate the trade-in value of your vehicle. Use pricing guide resources, likeKelley Bluebookor Edmunds, to get an idea of what the market value of your car is.
- Figure out your equity. To determine if you have positive or negative equity, subtract the payoff value from the estimated cost of your car. A positive value indicates positive equity, and your vehicle is worth more than what you owe. If the number is negative, this means you have anupside-down loanand owe more than the value of the vehicle.
- Step 4: Provide the necessary documents to your dealer, including:
- Information on your loan
- Government-issued ID
- Vehicle registration
- Proof of insurance
- Car keys or fobs
- A printout of your trade-in value
Once you have picked out the car, review the terms and make sure you understand what is agreed upon to close the deal on your new ride. Check the numbers on the contract using a calculator. You should expect to find a copy of the new car contract in the mail from your lender.
Before you pick up the keys to your dream car, check out how you can save money by buying a new auto policy with Jerry. In less than 45 seconds,
Jerry
collects all of your information from your existing insurer. Choose from competitive quotes from more than 50 top insurance companies and Jerry takes care of the rest—securing your new policy and helping you cancel your old one. The average Jerry user saves $879 a year on car insurance.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
