How to Sell a Financed Vehicle

If you have an auto loan on a vehicle that you do not want to keep, that does not have to stop you from selling the vehicle. While it can be difficult to sell a financed vehicle, it can be done. As long as you can find a trusting buyer, you can make the sale without the car title and give it to the buyer after the loan has been paid in full.

Instructions

1

Check the fair market value of your vehicle by using the Kelley Blue Book or NADA Guides website (see Resources). This gives you an idea of what you can get for your car when you sell it.

2

Call your auto loan company to get the pay-off amount for your car loan and how long that pay-off amount is good for. If you manage your loan online, you may be able to get the pay-off amount by logging into your online account. Once you have the pay-off amount, you can compare it to the fair market value. If the loan amount is higher than the value, you owe more on the car than it is worth. This is referred to as negative equity or being upside down on the car.

3

List your vehicle for sale in car classified ads, such as in your local newspaper and on sites like Auto Trader, eBay Motors and Craig's list (see Resources). Include photos and disclose that there is currently a lien on the car. This lets the potential buyer know that you won't have the title. Once you find a buyer, you must use their money to pay off the car loan. If you have negative equity, you must come up with the difference to pay off the loan. After the loan is paid off and the title is sent to you, it must be signed over to the new owner.

4

Trade your car in at a car dealership, if you can't sell it on your own. Even if you have negative equity, a car lot will typically take your trade-in if you are buying another vehicle. If you do this, you end up with the negative equity transferred onto the new car loan.