How to Sell a Car That You Are Still Financing
A Simple Guide from Cash N Carry Parts
Selling a car can be a pretty straightforward process—until you realize you still owe money on it. Suddenly, what felt like a quick task turned into a series of questions: Can I sell a financed car? What happens to the loan? Who holds the title?
At Cash N Carry Parts, we’ve worked with thousands of customers looking to sell vehicles in all kinds of financial situations. Whether your car is fully paid off, slightly upside-down on a loan, or barely drivable, we help make the process simple and stress-free.
Let’s walk you through how to sell a car you’re still financing, step-by-step.
Understanding the Basics: Can You Sell a Financed Car?
Yes, you can sell a car with an active auto loan, but you’ll need to work with your lender to settle the remaining balance. Essentially, you must pay off the loan in full before the vehicle’s title can be transferred to a new owner.
Why This Matters:
When a car is financed, the lender typically holds the lien on the title. Until that lien is released, you technically don’t own the car outright—meaning you can’t legally transfer ownership without settling the debt.
According to Experian’s 2023 Automotive Finance Report:
“Approximately 85% of new car buyers and 36% of used car buyers finance their vehicles, making this a common situation for sellers.”
Step 1: Find Out Your Payoff Amount
Your first move is to contact your lender and request your loan payoff amount. This number includes the remaining balance plus any interest or early payoff fees due on a specific date.
Pro Tip: Request a “10-day payoff amount,” which accounts for daily interest and gives you a buffer if the transaction takes a few days.
Step 2: Determine the Value of Your Car
Next, you need to know how much your vehicle is worth on the current market. Use trusted pricing guides like:
- Kelley Blue Book
- Edmunds
- NADA Guides
Compare this value to your payoff amount:
- If your car’s value is greater than the payoff →, you have positive equity (great news!).
- If your car is worth less than what you owe →, you have negative equity (don’t worry—we’ll cover this, too).
Example:
Let’s say your loan payoff is $9,000, and your car’s value is $7,500. You’re $1,500 underwater. You’ll need to cover that gap to sell.
Step 3: Decide Where and How to Sell
Option 1: Sell to a Dealership
Dealerships can handle the loan payoff and paperwork for you, making it a hassle-free transaction. The downside? They may offer less than your car’s private sale value.
Option 2: Private Buyer
Selling directly to a private party often gets you the most money, but coordinating with your lender and managing paperwork can be more complex.
Option 3: Sell to a Local Cash Buyer (Like Us!)
At Cash N Carry Parts, we buy used and even junk cars with or without a lien. We work directly with sellers to simplify the process, handle lien payoffs, and ensure you walk away with cash.
Visit cashncarryparts.com to get a free cash offer in minutes—whether your car runs or not.
Step 4: Handle the Loan Payoff Process
When you accept an offer, you’ll need to arrange the loan payoff. This can be done in several ways:
- Buyer pays the lender directly: Some private buyers or cash-for-car services can send payment directly to your lender to release the lien.
- You pay the balance first: If you’re in a positive equity situation, you may pay off the loan yourself and then transfer the clean title.
- Use an escrow service: For high-value private sales, a trusted third-party service can help manage funds safely.
At Cash N Carry Parts, we often work directly with your lender to settle the loan, pick up your car for free, and pay you the difference (if any) right away.
Step 5: Transfer Ownership
Once the loan is paid off, your lender will release the title—either directly to you or the buyer. From there:
- Sign over the title.
- Provide a bill of sale.
- Remove your license plates (varies by state).
- Cancel your insurance once the sale is final.
Always check your state DMV’s website for specific steps regarding title transfers and legal obligations.
What If You Have Negative Equity?
Being “upside down” on your loan can feel discouraging, but you still have options:
- Pay the difference in cash: If possible, this clears the way for a clean sale.
- Roll over the balance into a new loan: Some dealerships allow you to transfer the remaining loan into your next vehicle purchase.
- Sell to a company like Cash N Carry Parts: We often work with customers in negative equity situations and help them find the best possible solution.
Why Sell to Cash N Carry Parts?
If your car is damaged, older, or not worth much on the open market, selling it on your own can be a hassle. That’s where Cash N Carry Parts steps in.
Here’s what you get when you sell to us:
✅ Instant cash offers—no waiting
✅ Free vehicle pickup—at your home, office, or repair shop
✅ Lien support—we help coordinate with your lender
✅ Fast payment—get paid on the spot
✅ No pressure or hidden fees
Whether you’re in Savannah or the surrounding Georgia areas, we make selling easy—even if you still owe money on the car.
Conclusion: Don’t Let a Loan Stop You From Selling
Selling a car with an outstanding loan may seem complicated, but it doesn’t have to be. With the right information and a trusted buyer like Cash N Carry Parts, you can navigate the process smoothly and walk away with cash in hand—even if you still owe money.
Whether you’re trading up, downsizing, or just ready to move on from your vehicle, our team is here to make it fast, fair, and stress-free.
Visit www.cashncarryparts.com today or give us a call at (912) 352-0725 to get a free quote and start the process.
Frequently Asked Questions (FAQs)
Q1: Can I sell a car I still owe money on?
Yes! You can sell a financed car, but you’ll need to work with your lender to pay off the remaining balance and release the title.
Q2: What if I owe more than the car is worth?
This is called negative equity. You’ll need to pay the difference between your loan balance and the sale price—or work with a buyer like Cash N Carry Parts, who can help handle these situations.
Q3: Will Cash N Carry Parts buy my car even if it’s still financed?
Absolutely. We help coordinate with your lender, pay off the loan, and either pay you the difference or help you move on from the car, depending on the situation.
Q4: Do I need the car title in hand to sell?
If you still owe money on your car, your lender likely holds the title. Once the loan is paid off, the title is released and can be transferred to the new buyer.
Q5: What types of cars does Cash N Carry Parts buy?
We buy almost all types of vehicles—used, junk, wrecked, or running. Whether you’re upgrading or getting rid of a non-operational car, we’ll make you a fair offer.
Q6: How long does it take to sell my car with Cash N Carry Parts?
In most cases, we can schedule same-day pickups and process your payment on the spot. It’s fast, easy, and safe.
