Things to Know When Selling a Car That’s Not Paid Off
You might be wondering: “If I still have a balance due on my car, is it even possible for me to sell it before it’s paid off?”
Good news! The answer is yes!
However, there are a few steps that you should take now to be sure you can quickly sell or trade-in your vehicle for top dollar. In this blog, we’ll discuss all of them and everything you need to know about how to sell a car with a loan. Let’s dive in.
First things first: How much is your car worth?
Because the loan amount will need to be paid in full in order to transfer ownership to the buyer, knowing how much your car is worth is essential. Understanding your car’s value will help you price it accurately and predict how much cash you’ll have left over after the sale.
Now that you know how much the car is worth, you need to know how much is still outstanding on your car loan.
To get this amount, contact the lender who services your loan and request your payoff balance. Since interest accrues daily, the payoff amount may be slightly different than the balance on your last statement.
Next, compare the loan balance to the estimated value of the car. This will help you understand whether the vehicle has enough value to pay off the loan and let you walk away with some cash in your pocket or if you’ll need to use the entire value of the car to pay off the loan.
If the car’s value is less than the amount of the outstanding loan, you’ll need to come up with that cash to pay off the loan, or you won’t be able to sell the car right now.