Selling a Used Car With Money Owed

When you still owe money on your used car, but you want to sell it, you will have to pay the money you owe to the lender before the other party can take ownership. While you may think you must have the funds up front to pay off your car loan, you don't. In fact, you can close the current loan and sell the car at the same time when you take the right steps.

Instructions

1

Call your lender and ask specifically for the "pay-off amount" on the car. Write the amount down for future reference.

2

Find a buyer who is willing to pay you the amount that you owe on the used car. If you can't sell it for the amount you owe, you will have to pay the difference.

3

Call your lien holder and ask if you can come to their office to conduct the sale. Meet the buyer at the lien holder's location.

4

Instruct the buyer to pay the lien holder the amount owed on the vehicle, or the agreed-upon amount. Pay any outstanding balance out of your own pocket.

5

Complete any paperwork the lien holder requires to close the loan. Sign over the vehicle's title to the buyer.