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How do I sell a used car with a loan?
I want to sell my second-hand Honda Civic so I can upgrade to a new model. I haven’t paid off my loan yet, though. How do I sell an older car if I still owe money on it?
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Selling a car you owe money on might seem impossible but rest assured; it is possible. You just need to find a buyer who can either pay the loan in full or refinance the loan in their name.
To sell a used car with a loan, do the following:
- Determine the payoff amount for your loan. Paying off the loan is also the only way for the lender to release their ownership over the car.
- Figure out the current value of your vehicle. Use resources likeKelley Blue Bookor Edmunds to get an idea of the value of your car.
- Determine your equity. To calculate this, subtract the payoff value from the estimated cost of your car. A negative means you have anupside-down loan. The profit from selling the car will go to your lender, and you will pay the remaining balance out of pocket. A positive means you will sell the car, pay off the loan balance, and pocket the remaining value.
Before you purchase your new Honda Civic, take some time to learn how you can purchase a new auto insurance policy with
Jerry
. A licensed broker that offers end-to-end support, Jerry gathers affordable quotes, helps you switch plans, and will even help you cancel your old policy. The average Jerry user saves $879 a year on car insurance!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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