How to privately sell a car with a loan?

I want to sell my car but it’s still under a loan. I’ve heard I’ll make more money selling it privately than trying to trade it in at a dealership. Can I do this?

Answer
Yes, but there are restrictions. You’re going to have to talk to your lender first and find out how much you still owe, also known as the payoff amount. You may be required to be able to pay off the car to sell it, or your lender may have other specific rules in place.
Once you’ve talked with the lender and know how much you still owe on your car, you can determine how much your car is worth. Use a site like Kelley Blue Book or Edmunds.
If your lender gives the okay, you can post a listing for your car. The most important thing you can do is be honest with potential buyers about the loan’s existence—you don’t want to blindside a buyer and have them back out at the last minute.
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Lauren Smith
Answered on Nov 11, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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