To sell a car with an outstanding loan, determine the payoff amount, use the buyer's money to pay off the loan, and then transfer the title. This may prove challenging, however, as not all buyers are comfortable with this transaction type.Continue Reading
The first step to selling a car with an outstanding loan is to find out the payoff amount. The bank can give this information, and the owner should check if there are any rules about selling the car to another person. The tricky part is asking the buyer to pay off the note, as many are not comfortable with this. To help ease the worry, the seller and buyer can go to the bank together, or the bank may accept the payment directly from the buyer.
Ask the buyer to write a check to the bank to pay off the loan and a separate check to pay off the rest of the deal. After the buyer pays for the vehicle and pays off the loan, the bank either gives the title to the owner or sends the title to the new buyer. Alternatively, if the buyer chose to finance the car, the bank sends the title to the lender.Learn more about Buying & Selling