How to Sell a Car With a Cosigner

The co-signer on your car loan signed the loan agreements with you and is jointly responsible to pay the debt. However, unless your co-signer is listed on the title as the co-owner, you do not need your co-signer's permission to sell your car. You still need to work with the lender to release the lien on the title when you sell the car, but this is a process that does not need to involve the co-signer. If your co-signer is listed on the title, this complicates the process slightly and you will need this person's signature to sell the car.

Instructions

Co-Signer Not on Title

1

Look up your car's value on a website that estimates used car prices, such as Edmunds, Kelley Blue Book or NADA Guides. Compare the anticipated sale price to the balance on your car loan, which you can find on the most recent statement. If the sale price is less than the loan balance, you might want to wait before selling the car. Otherwise, you will have to come up with the difference in cash at the time of the sale.

2

Contact your lender and explain that you are planning to sell your car. Ask how the lender processes the lien release.

3

Sell your car to a dealership or used car lot to easily process the sale. The dealership or lot will work with the lender to pay off the car loan, get the title and give you the remaining money. If the sale does not fully pay off the loan, you must pay the difference.

4

Sell the car to a private buyer by having the buyer meet you at the lender's office to complete the sale. The buyer can write a check or give cash directly to the lender to satisfy the lien and release the title to you. You then sign the title over to the buyer and get the remainder of the purchase price, if any.

Co-Signer on Title

5

Contact your co-signer and co-owner and let him know you would like to sell the car and need his signature on the car title. If he does not want you to sell the car, you need to convince him otherwise to continue. You might need to draw up an agreement to give him part of the proceeds of the sale, especially if he helped pay the car loan at any point.

6

Follow the steps listed in the previous section to contact the lender, determine the loan payoff amount, find a buyer and arrange a meeting place for completing the sale.

7

Bring the co-owner with you to the sale location. Both of you will sign the title over to the buyer. If the co-owner does not live in your area, you need to mail the title to him to get his signature. This is easy if you have the title in your possession, but if the lender holds it, which is often the case when you have not paid off the loan, you have to work out the details with the lender.