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How do I buy a car that has a loan on it?
I want to purchase a car from a private seller, but he told me that he still owes money on it. How do I buy a car that has a loan on it? Is it even possible? I'm going to pay cash for it.
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Some people may be scared to take on a car that’s still being financed, but as long as the seller is upfront with you about what he owes, you should be fine to acquire the car and its
loan
. If you’ve done your homework—finding the value of the car, getting a Carfax report, and so on—you’re ready to buy the car.
You essentially have two options:
- Go with the seller to his lender and pay off the loan (to ensure he doesn’t run off with the money)
- Have a dealer act as a broker. The dealer will buy the car from the seller and resell it to you. You’ll pay a little extra to make sure everything goes smoothly
Since you’re paying cash to take care of the loan, you also have the option to choose whatever car insurance coverage you want. With the
Jerry
app, you can compare liability, comprehensive, and collision rates to find the best deal for your car insurance needs.View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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