How do you sell a car on which more is owed than what you could sell it for?
Talk to a loan officer at the lending institution and let them
know what you're trying to do and make arrangments to pay the
balance after the car is sold. If they know that you have plans to
take care of the rest of the debt, they'll probably be willing to
work with you. Unfortunately, if it's a lending institution that is
associated with the auto industry, they may refuse, requiring that
you buy a NEW car or pay off the old one. If all else fails, pay
down the vehicle to what it's worth, sell it for the payoff amount,
then the bank can't argue with you.