Selling A Car With A Loan

You may also choose to have this amount applied toward the purchase of a new car.

Selling a car with a loan. Selling a car can be tricky business. It may look cumbersome but its a process that is commonplace in the retail auto industry especially when it comes to used cars. Selling a car is a tedious enough process. How to deal with an out of state lender.

The dealer will pay the existing balance and give you a check for any amount over the negotiated sale price. When you take out a car loan the lender holds the. This will allow you to transfer the vehicle to the buyer. Selling a car with a lien.

Topics to ask about include potential prepayment penalties and the estimated processing time for receiving the title after the lien on the. If the lender is not local youll need to bring the bill of sale on the car to your state department of motor vehicles. Its still possible to sell your financed car but youll need to jump through a few hoops to accomplish your objective and make sure the sale is above board and legal. One option when youre selling a car before the loan is paid off is to sell it to an auto dealership.

The easiest way to get out from under the lien is just to get a personal loan to pay. Its not difficult to sell a car with a loan on it but it adds extra steps and might take a little longer. Selling a car that you owe money on is equal parts transactional and administrative. That means the lender technically has a claim of ownership the title isnt entirely yours to transfer.

You might not get as good a price as if you were to sell it to an individual buyer but a car dealer will be used to working with lots of different types of drivers and theyll be able to work with you and your lienholder. Your lender might even have a local office where you and the buyer can meet which can make for a smoother transaction. If the vehicle youre trying to sell still has a loan against it you have the makings of a potential headache. Selling your car to another person directly means a few more steps but also means more money.

When you have a loan the lender is in a sense part owner of the vehicle. When contacting your lender its also a good idea to ask if they have any suggestions for selling the car while the loan is in place. If you try to sell before you have paid off your initial car loan there is technically a lien on the car from the lender. Youll want to obtain a temporary operating permit for the buyer.

As a baseline you need to know the present value of your vehicle and how much you owe on your loan also known as. Selling to a dealer means knowing a fair price and being able to negotiate. Know what your car is worth and the payoff amount of the loan. You must satisfy your loan first and thats what selling it to the dealer will do.

Never accept below book value per kelley blue book for a working car in decent condition. This makes selling your car with an outstanding loan balance a bit more difficultbut not impossible.