It’s possible to sell a financed car. Here’s how.
Selling a car with a loan is complicated because the lender is in possession of your title. But it isn’t impossible. The process of selling your financed car largely depends on whether you trade it into a dealership or sell it to a private buyer.
Here’s what you need to know:
How to sell a car with a loan
Private sales are more tedious, but generally net a higher profit than just trading your car into a dealership. And selling a financed car privately is even more difficult than regular private sales because your lender has possession of your title and therefore have to be involved in the sale.
Once you decide you want to sell your car, you need to find out the fair value of your car in a private sale—not what you wish it would sell for, but what the market value of a similar vehicle would be in a private sale.
This is easiest to do if you have experience with the car market, but you can use online services like Kelley Blue Book or Edmunds to get an idea of what your car might sell for. But make sure to be as specific about your car’s condition, mileage and accident history when estimating its value. Otherwise, it’s likely your car will sell for too low—or not at all.
Next, you need to call your lender to figure out how much you still owe. It’s best not to trust the last balance you got in the mail, as interest accrues daily.
Once you know the loan amount and the estimated value of your car, you’ll have a better idea of how much you’ll make—or owe—after the sale. Generally, it’s easier to sell a car that’s worth more than you owe, but it’s best to know your situation before you accept an offer from a potential buyer.
Now that you know your situation, it’s time to get the lender involved. If you are trading in, you can just give the dealership power of attorney and they can deal with the lender directly. If you’re selling it privately, you’ll need to have the lender’s consent because you can’t sell a car without the title.
Once you have your lender’s consent, you’ll need to list your car. Be transparent about the fact there’s a lien, since the buyer will have to pay it off.
After you accept an offer, you’ll need to set up the sale. When a payoff is involved, it’s best to perform the sale in the lender’s office so you’ll have all relevant documents from the lender on hand.
When you go to the DMV, you’ll need to make sure you have all necessary documents prepared lest the sale go south. The DMV has a helpful guide on preparing for a sale with a payoff.
Basically, private party sales are hard, especially when payoffs are involved. But you’ll leave the sale months later, cash in hand, knowing you got the best deal, right?
Well, no. See, there’s a better way you sell your financed car.
The hassle-free option: Sell your car as is for its KBB value in full
You could turn your financed car into its KBB value in cash within 24 hours.
No hassle. No low-ball offers from dealers. Just your car’s value in cash from a reputable Kelley Blue Book ICO partner dealership.
Selling to I Buy Luxury Cars is the easiest way to sell a financed car. All you have to do is submit your car’s information through our secure online form. Within 20 minutes, one of our car valuation experts will get back to you with a no-haggle offer based on your mileage, condition and vehicle history.
If you accept our offer, we’ll deal with everything else—contacting your lender, facilitating the transfer of ownership, shipping your vehicle. And, once we negotiate your lien, we’ll wire your cash in full in 24 hours or less.
Sound easier? It is. So send us your luxury car’s information today for your no-obligation, KBB-backed offer!