Check your loan payoff amount with your lender
Compare the payoff amount to your car’s current market value
If the car is worth more than the payoff, plan to keep the difference
If the car is worth less than the payoff, prepare to cover the shortfall
Contact your lender to learn the exact payoff process
Ask whether the lender holds the title or lien release
Gather the title, registration, loan account details, and ID
Determine whether you will sell privately or to a dealer
Disclose the loan to the buyer before finalizing the sale
Use the buyer’s payment to pay off the loan directly if possible
Meet at your lender, bank, or escrow service for a safe transaction
Pay off the loan and obtain a lien release or title from the lender
Transfer the title to the buyer once the loan is cleared
Provide a bill of sale and any required state documents
Cancel or transfer insurance after the sale is complete
Notify your DMV or state agency of the sale if required