How to Get Rid of a Car That Money Is Still Owed On

Selling a car that you own outright is a fairly straightforward process in which you're able to pocket the profit. Selling a car with an outstanding balance is more complicated, because the loan must be paid off and the car title must be obtained from the lender. But it can be done.

Instructions

1

Find out how much you owe on the auto loan. Contact your lender and request the payoff amount of your vehicle loan.

2

Refer to a reputable source, such as Kelley Blue Book, to determine the fair market value of your vehicle. This helps you determine a reasonable asking price for your automobile.

3

Establish an asking price for your car. Choose a price that's high enough to pay off your auto loan balance to avoid paying a deficiency balance out-of-pocket. List your car for sale in classified ads or an appropriate online website.

4

Accept payment and begin the transfer of ownership. Once you receive the buyer's payment for the car, complete a bill of sale and accompany the buyer to the Department of Motor Vehicles (DMV), where the buyer can obtain a temporary operating permit based on the bill of sale. The buyer must trust that you will pay off the loan and have the lien removed. Take the proceeds from the sale and pay off the original loan balance.

5

Transfer ownership of the car. Once your lender mails you the car title, sign the document to transfer ownership to the buyer. The buyer is responsible for submitting the title to DMV to complete the process.