Question: Can You Sell Your Car Before The Loan Is Paid Off?

Question: Can You Sell Your Car Before The Loan Is Paid Off?

You’ll need to pay off your loan completely to transfer ownership.

If you owe more than the sale price, you’ll have to pay the lender the difference.

This is to ensure you can’t sell the vehicle and transfer the title to the new owner without the lender getting its money — or the balance of the loan.

What happens when you sell a car that you still owe money on?

Selling a car can be a complicated process, and it’s even more intimidating if you still owe money on the vehicle you’re selling. Pay off the remaining debt – possibly with the sales proceeds from your buyer, and any extra funds that you bring to the table (if your car loan is upside-down).

Photo in the article by “Cyberspace Law and Policy Centre” http://www.cyberlawcentre.org/unlocking-ip/blog/labels/abi.html