How to Sell a Car When You're Still Financing

To sell a car that you're still financing, plan ahead to pay off your auto loan provider so you can quickly transfer your vehicle's title to your buyer. Many states do not allow title transfers when a lien exists, so expect to remove the lien from the title or obtain a lien release to provide with the car's title to your buyer. Before you advertise your car for sale, learn about your lender's payoff process and the time frame it requires to process paperwork to better work with a buyer.

Instructions

1

Call your auto loan provider. Ask for your loan's payoff and per-diem amount, or the amount you pay toward interest daily. Write down both figures. Add your per-diem amount to your loan's payoff for every day it takes to pay off your loan.

2

Ask your lender how to pay off your loan balance. Find out if you can go to your lender to receive a title or lien release or how long your lender needs to process paperwork. If your lender is not local, make sure you obtain a time frame to relay to a seller, as it can take several weeks to mail paperwork back and forth.

3

Decide on a price for your vehicle. Use online appraisal guides, such as Edmunds.com or the Kelley Blue Book website, to determine a value. If your vehicle's value is less than your loan payoff amount, ensure you have the remaining funds needed to satisfy the loan, a requirement to release the vehicle's lien.

4

Advertise your car until you find a buyer. You don't have to advertise that your vehicle still has an unsatisfied loan, but let your buyer now your lender's pay off process and how long the title transfer takes if it is not instant.

5

Go with your buyer to your lender to complete the payoff and title transfer paperwork. If you need to pay extra to satisfy the loan, bring your funds with you to complete the transaction promptly. If your lender is not local, call your lender and note your account to allow your buyer to access your payoff information and also pay the lender directly.

6

Sign your vehicle's title once you receive it and provide your buyer with the car's original lien release. Make a copy for yourself if you'd like to keep documentation for your records. Remove your license plates before transferring ownership and call your insurance provider immediately to remove the car from your policy.