Services
Insurance
Loans
Repairs
Advice
About

How do you sell your car privately with a loan?

My daughter has been in and out of the hospital for many years battling an illness, and the cost for treatment can be very expensive. I am thinking of selling one of my cars so she can continue getting treatment. How do you sell a car when you still have a loan?

avatar
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Wow—your generosity and your daughter’s strength are both so admirable! I hope she feels better soon.
Although your loan is not paid off, you can still sell your vehicle. To sell your car privately with a loan, here are the instructions you need to follow.
Step 1: Determine the payoff amount for your loan. Paying off the loan is the only way for the lender to be removed from the
title
.
Step 2: Figure out the current value of your vehicle. Use resources like
Kelley Blue Book
or Edmunds to get an idea of the value of your car.
Step 3:​​ Determine your equity. To calculate this, subtract the outstanding loan amount from the current value of the vehicle.
If the difference is negative, this means you have an
upside-down loan
. This is when you still owe more on the loan than the car is currently worth. You will need to give the lender all of the money from the car’s sale and pay the remaining loan balance out of pocket.
If the difference is positive, you will sell the car, pay off the loan balance, and keep the remaining value.
Step 4: Transfer the
title
to the buyer and provide a bill of sale to finalize the transaction.
Since it sounds like you have other vehicles, check out how you can cut back on other car expenses by saving money on insurance with Jerry.
If you want cheap car insurance quotes fast, go to
Jerry
. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and will even help you cancel your old policy.
View full answer 
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

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings