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How do I sell my car if I still owe on the loan?
I want to purchase a new car. But rather than trade my car in, I'm going to sell it privately to get more money. I still owe money on it from my loan, though—so how do I sell it if I still owe on it?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You’re making a smart move by
selling your car
privately, as you can usually net 10% to 20% more money than a trade-in.The process of selling your car when you still owe on a
car loan
can vary depending on whether you have negative or positive equity.If you have positive equity, the process is straightforward. Get cash or a cashier’s check bring it to your lender, pay off your loan, and pocket the proceeds.
If you have negative equity, the process is still simple, but it requires some more forethought and consideration about what to do with the remaining balance on your loan. You can either pay this off out of pocket or roll it into a new loan.
With any luck, you can find a buyer to maximize your income.
And when you buy your new vehicle, remember that you’re still going to need full coverage auto insurance. One easy way to get the best rate on the coverage you need is through the
Jerry
app—we’ll get you customized quotes from different top-of-the-line providers, so that all you have to do is pick the plan that works best for you.Best of luck with selling your car!
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