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Can you sell a car when you still have a big car loan to pay off?
Wiki User
∙ 14y ago
As the vehicle owner, you can sell the car whenever you choose. You are liable for the car loan. If you are selling the vehicle for less than the loan (especially when you are upside-down on the loan - you owe more than the car is worth), you need to pay the difference to your lender.
When trading the car in to a dealership (in effect selling it to the dealer) the dealer should handle the loan payoff details. You need to inform both your lender and your state DMV that the vehicle is being sold. The lender will release the lien against the vehicle after they receive payment from the dealer.
Selling to another individual is harder. It is best to work with your lender and find out how they prefer to handle the transaction. You will need to supply the buyer with a clear title, but you can't get a clear title until you lender releases the lien on the title, which they won't do until they receive payment. Many lenders have a standard way of handling individual to individual vehicle sales.
For example, for a car with a loan greater than the sale price of the vehicle:
In Michigan, go to either a Bank or a Credit Union and get approved for a loan around the difference in price you are looking at. Then, when you find a buyer and agree on a price, you will go to the bank or credit union, and get the loan. You and the buyer must go to whoever holds the lien on your car, and you both pay your amounts owed on the car. The lien holder will sign the title releasing the lien, and you are free to take the title in to the DMV. It varies from state to state, but this is how it is done in Michigan.
Wiki User
∙ 14y ago
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How do I get the car loan out of my name when I sell it to some one?
You cant. The loan in your name must be paid off by you. So if you plan to make any money off your car you will want to sell it for more then what is still owed.
How do you sell a car if you have a loan on it but it is worth more than you still owe?
First subtract the amount owed on the vehicle from the value of the car. Sell the car for this amount, then have the buyer take over the loan. This involves paperwork with your current Dealership, DMV, and of course a bank or credit union.
Can you sell your car with payments left on the loan?
Someone cannot sell his car if there are still some pending payments on a loan. It is however possible to enter an agreement with the financier so that the remaining payments can be financed by part of the proceeds from the car sale. An extra interest payment may be charged for that.
What if you sell the car and you have a title loan out on it?
That's illegal. Technically, if you 'borrow' money against your vehicle, the car becomes the property of the loan company until you've repaid the loan. If you sell the car before the loan is repaid, you're likely to land yourself in court !
What do you do if you cosign for someone and they wreck the car and sell it but still owe on the loan?
When they get out of jail for selling property with a lien on it, and after YOU pay off the loan, you might consider NOT co-siging again.
How do you sell a car without the pink slip when still owing money on the car?
You can't sell it. You don't own it. The bank or loan company owns the car. You need their permission to sell the car and transfer title.
How do you sell a upside down car?
If you mean you still owe money on the car you don't sell it unless you can take the money and pay off the loan. The bank really owns your car and the pink slip, so if you sell it without the loan getting paid you still owe the money to the bank.
How do you sell a car that you still owe on that is damaged?
If you can get enough out of the car to pay off the loan then just sell it. If you are upside down on the loan, they that presents a real problem. You may have to just sit on the car until you pay off enough of the loan to be able to sell it an get enough to pay off the loan. You could also sell it and take out another loan that will cover the deficiency, but that may not be a good decision if you are financially strapped.
How do I get the car loan out of my name when I sell it to some one?
You cant. The loan in your name must be paid off by you. So if you plan to make any money off your car you will want to sell it for more then what is still owed.
How can you get rid of a your car when you still have payments?
Sell it or trade it in. Then take the proceeds to pay off the loan.
How do you sell a car when you still owe money?
If the car is worth less than you owe on it, you can try to get an unsecured loan from a local credit union or a local bank. You could also try to ask whatever financial institution has your car loan for an unsecured loan for whatever the car doesn't bring when you sell it.
Can you still sell a car currently in defualt and in risk of being repossessed?
Yes, and you will have to use the proceeds to pay off the loan. If you can't sell the car for enough to cover the loan, however, you will not get a title. No one should accept a car without a title.
When a person died by naturally then what happen car loan?
Until the car is paid for, the company that made the loan still has a financial interest in that car for the amount that is still owed. If that amount is not paid, the holder of the loan has the right to repossess and sell the car. If that does not generate sufficent funds to pay the loan balance, they may make a claim against the estate of the debtor.
Can you sell a car in one state when it is still registered in another and you have a loan you are still paying off?
No, you can not sell a car that doesn't belong to you and that you don't have a title to. If you are still paying for a car, the leinholder will have the title. The car won't be yours until you pay for the car in full and the leinholder signs off on the title and gives it to you.
Can a co signer take over ownership of car loan and get insurance?
A co signer is for the loan, they do not have any ownership in the car unless they are on the front of the title. If they just co signed for the loan, that lmeans they will pay for it if the owner does not. Even if they paid the entire loan, they still would not own the car. To transfer the car, they would have to either pay the loan off or get a loan in their name and you sell the car to them.
If you want to sell a 3 year old car that you are still paying for versus trading in should you apply for a loan to pay off the car loan?
I wouldn't. Contact the bank who you have the loan with before you try selling the car so you can get all of the details about how to handle the pay-off when you sell it. Find out what car dealers don't want you to know at www.dealertricks.com
How do you sell a car if you have a loan on it but it is worth more than you still owe?
First subtract the amount owed on the vehicle from the value of the car. Sell the car for this amount, then have the buyer take over the loan. This involves paperwork with your current Dealership, DMV, and of course a bank or credit union.
