Are you looking to sell your car but are still making payments on a loan? If so, you’re not alone. In fact, according to recent estimates, there are over 10 million Americans in the same situation.

How to Sell Your Car When You Still Have a Loan

If you’re hoping to sell your car and pay off your loan at the same time, there are a few things you need to know. In this blog post, we’ll give you some tips on how to sell your car when you still have a loan. We’ll cover topics like understanding your loan, finding a buyer, preparing the car for sale, and more. By the end of this post, you should have a better idea of how to approach selling your car with a loan.

Understand Your Loan

The first thing you need to determine is how much money you still owe on the loan. This can be found by looking at your most recent loan statement or contacting your lender directly. You’ll need to know this number so that you can determine how much money you’ll need to sell the car for in order to pay off the loan in full.

The Terms of Your Loan

In addition to knowing how much you still owe, it’s important to understand the terms of your loan agreement. These will include things like the interest rate, monthly payment amount, and length of the loan. Knowing these things will help you to determine what kind of offers you’re likely to receive from potential buyers.

How Your Loan Affects the Sale

Once you have a clear understanding of your loan situation, you can start thinking about finding a buyer for your car. If you’re still making payments on the loan, it’s important to keep in mind that the lender will need to be paid off first before any money goes to you. This means that you’ll need to find a buyer who is willing to pay more than what you owe on the loan balance.

Find a Buyer

The first option for selling your car when you still have a loan is to sell it to a car dealership. This can be a quick and easy way to get rid of the car, but you may not get as much money for the sale. The dealership will likely offer you less than the car is worth, so they can make a profit on the sale. If you’re not concerned about getting top dollar for your car, then selling to a dealership may be the best option for you.

Selling to a Private Party

Another option for selling your car when you still have a loan is to sell it to a private party. This can be done through online classifieds websites or by word-of-mouth. The advantage of selling to a private party is that you can usually get more money for your car than you would if you sold it to a dealership. The downside is that it can take longer to find a buyer this way, and you may have to negotiate with potential buyers before agreeing on a price.

Other Options for Selling Your Car

If neither selling to a dealership nor selling to a private party sounds appealing, there are other options available as well. You could trade in your car at a dealership when buying another vehicle, or sell it to an auto salvage yard or scrapyard if it’s not in running condition anymore. You could also give the car back to the lender if you’re unable t o sell it or can’t afford to make the payments anymore. However, this will likely damage your credit score.

Prepare the Car for Sale

In order to sell your car, you will need to gather a few important documents. First, you will need the title to the vehicle. If you have a loan on the car, the lender will likely have the title in their possession. You will need to contact your lender and request that they send you the title. In some cases, there may be a fee for this service.

You will also need a bill of sale. This document can be filled out by you or the buyer and should include information such as the make and model of the car, VIN number, odometer reading, selling price, and date of sale.

If your car has a lien on it, you will need to obtain a release of lien from your lender before you can sell the car. A release of lien is a document that states that the lender agrees to release their claim on the vehicle.

Clean and Repair the Car

Before listing your car for sale, it is important to take some time to clean and repair it. A clean car will be more appealing to potential buyers and may help you get a higher selling price. Start by giving it a thorough wash inside and out. Be sure to remove any trash or personal belongings from the interior. Next, vacuum all of the carpets and upholstery. If there are any stains or spots, try to clean them as best as you can.

It is also a good idea to have any minor repairs taken care of before listing your car for sale. Things like fixing a cracked windshield or changing oil can help make your car more attractive to buyers.

33 Determine a Fair Selling Price

Once your car is clean and in good working condition, it is time to determine how much to sell it for. You will want to find a balance between pricing it too high and pricing it too low. If you price it too high, potential buyers may be turned off and look elsewhere; if you price it too low, you could end up losing money on the sale.

To come up with a fair selling price, you will want to research comparable vehicles. Look at listings for cars that are similar to yours in terms of make, model, year, mileage, and condition. This will give you an idea of what buyers are willing to pay for a car like yours. You can also get an estimate of your car’s value from online resources such as Kelley Blue Book or Edmunds.

Once you have an idea of what your car is worth, you can set a price that is slightly below the market value. This will leave some room for negotiation and increase the chances that you will receive a fair offer from a potential buyer.


If you’re looking to sell your car but you still have a loan on it, there are a few things you need to keep in mind. First, you need to understand your loan and how much you still owe. Next, find a buyer who is willing to pay what you owe. Finally, prepare the car for sale by gathering important documents and making any necessary repairs. By following these steps, you can successfully sell your car even if you have a loan on it.