Sell Car With Loan Still Owing

[pngdeity]

How do I go about selling a car that still has quite a bit owing still on the car loan?

More less do I need to sell above what I owe on the loan to get a decent return back?

can I sell a car with a loan owing? still? private sell?

What happens to the loan once car is sold? I assume I still have to pay off the loan?

but sale of car can I use the $ to pay off rest of loan? thanks

 

[doitforb]

@pngdeity Once everything is worked out, the buyer gets a bank draft for the amount he agreed to pay, or two if it's above what's owed for the car. One for the lienholder to clear the title, and one for you. You go to the lienholder together, give the payment, receive the title/release letter, complete sale paperwork and go your separate ways.

You may be able to sign over the loan or have the buyer take over payments, this would require speaking with the lienholder to work out the details. If it's for more than they agreed to pay, you give the buyer a bank draft for the difference, complete the sales paperwork, and you go your separate ways.

 

[davisalw]

@pngdeity If you sell a car with a lien (money still owing and car is the security) that does not dissolve the loan or the fact that the vehicle is collateral. So, if you fail to pay off the loan, the lender can still seize the car from the new owner.

Most lenders will do a lien search on the vehicle before offering a loan. Usually, the buyers lender will pay off the lien and write a check to you for any difference is there is.

A private sale is buyer beware. You buy a car with a lien and the original owner defaults, it’s on you.