How to Sell a Used Car With a Loan

You can sell your car even if you still owe money on it. Once you sell the vehicle, you'll be able to bring the money to the bank and obtain a lien release or the title (if your state holds it while money is owed) to give to the new owner. If you owe more money than you can sell the car for, you have to come up with the rest of the money to cover the payoff amount.

Instructions

1

Call the bank to which you make payments. Ask the representative for your payoff amount. Also ask for the per diem amount, which is the interest charge added on a daily basis. Add the per diem amount to the payoff each day until your car is sold to determine the payoff amount. Write this number down. If you make a payment during this time, you should call and get an updated payoff figure.

2

Search Internet used-car appraisal guides to determine how much money you could get by selling your vehicle. Several guides are listed in the resource section on this page. Make sure to research the private sale value---you'll have several sale-type options. Check more than one guide and select a median figure between the difference in prices, or check online to see how much similar vehicles are selling for in your area. If you owe more than you're able to sell the car for, you will have to come up with the remaining money owed to pay off your car to release the lien for the new owner. If you owe less, you could make a profit.

3

Advertise your car for sale. Check local Internet classified sites like the ones listed below on the "resources" section. Advertise online through your newspaper, pay for a print or online advertisement, or do both. Park your vehicle in a high-traffic area. Affix a "for sale" sign, or write this on your back window with a paint marker meant for glass.

4

Accept cash or a bank check for your vehicle to protect yourself once you find a buyer. Do not accept a personal check. Bring your buyer to the bank to pay off your loan. If you live in a non-title-holding state, your lien release is given to you immediately, which goes with your title to give to the buyer. Your buyer does not need to be present for this transaction, but may want to be present to protect his own funds and complete the transaction. Any additional money beyond the sale amount that is owed on the vehicle must be given to the bank at this time.