Wondering how I sell my car with a loan balance?
Selling a car with a loan balance can be a little more complicated than selling a car that you own outright, but it’s still possible. Here are the steps you can take:
- Determine the loan payoff amount:
The first thing you need to do is find out how much you owe on the car loan. This is known as the”loan payoff amount” and it includes the remaining principal balance of the loan plus any interest that has accrued. - Determine the car’s value:
You should also determine the current value of your car. You can use our online Get Offer Form or Call 1-800 We Buy Cars. Get an actual idea of the car’s worth. - Determine the equity:
Subtract the loan payoff amount from the car’s value to determine your equity. If the car’s value is greater than the loan payoff amount, then you have positive equity. If the loan payoff amount is greater than the car’s value, then you have negative equity. - Decide how to handle the negative equity:
If you have negative equity, you will need to decide how to handle it. You can either pay the difference between the loan payoff amount and the car’s value out of pocket, or you can roll the negative equity into your next car loan (if you plan to finance another car). Our Dealer Partners can help with all of the details. - Contact your lender:
Let your lender know that you plan to sell the car and ask for their specific instructions for paying off the loan. Some lenders require that the loan be paid off before the title can be transferred, while others may allow the title to be transferred with the loan still outstanding. - Complete the sale:
Once you and the buyer 1-800 We Buy Cars® have agreed on a price, you can complete the sale. If the law requires that the loan be paid off before the title can be transferred, 1-800 We Buy Cars® will handle all the details and paperwork for you, ensuring a smooth process to paying off your loan’s balance. Any existing equity after the final loan payment will be paid directly to the seller.
It’s important to note that selling a car with a loan balance can be a bit more complicated than selling a car that you own outright. 1-800 We Buy Cars® is prepared to work closely with your lender to ensure that the process goes smoothly.
