How To Sell A Car With A Loan

Selling a car is usually straightforward but when there’s an outstanding loan on the vehicle, the process becomes a bit more complex. Whether you're trying to trade in your current ride for a new one or sell it privately to pay off the balance, knowing how to sell a car with a loan is essential to protect your finances and avoid legal complications. This comprehensive guide will walk you through each step of the process, highlight common pitfalls, and help you choose the best option for your situation. Step 1: Understand Your Loan Status The first step in selling a car with a loan is understanding how much you still owe. Contact your lender and request the loan payoff amount; this is the total sum required to fully satisfy your loan as of a certain date. It may differ slightly from your current balance due to interest accrual. Once you have this amount, compare it to your vehicle’s current market value using tools like Kelley Blue Book, Edmunds, or NADAGuides. Positive Equity: If...