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Can you sell a car that you have a loan on by giving the car to the buyer using his money to pay off the loan and then mail him the title?

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Yes you can sell your car that has a loan it. The easiest thing to do is if you sell it locally and you have the car financed at your local bank, have the buyer go with you to your bank. Pay of the car with what you sold it for. The bank usually has the title to your car. They will pull your title from your file at the bank, turn it over to you, and all you will have to do is sign the back of the title as the seller and hand it over to the buyer. Be sure to print or write a bill of sale, both buyer snd the seller will sign and each of you will have a copy. Use the bill of sale to protect yourself. Note in this document that this car is being sold as is, where as, no warrany. This is also protects you against any legal action. Whatever that car is used for after this transaction is not your responsibilty so be sure to file your copy of the bill of sale. Also include the complete vin#, make model, color, ect, and the date of sale.  
When you sell your car you should take the buyer to your bank (if possible) and pay off your loan. Then when you get your title you can sign the back and get it notarized if needed in your state. Most knowlegable people would not pay you for an auto without getting the title. This is the true ownership document. Why would you trust a stranger to mail you this document? If that car was used in a crime or involved in an accident the owner is the person listed on the title. Also the buyer would want to be guaranteed the loan was paid off and the lien was removed.
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