Check your loan payoff amount with your lender
Compare the payoff amount to your car’s current market value
Determine whether you have positive equity or negative equity
Contact your lender to learn the title transfer and payoff process
Gather your loan account details, registration, and vehicle documents
Get the car appraised or obtain multiple offers
Decide whether to sell privately, to a dealer, or through a trade-in
If selling privately, disclose that the car still has a loan
Arrange for the buyer to pay the lender directly if required
Use the buyer’s payment to pay off the remaining loan balance
If the sale price is less than the payoff amount, pay the difference yourself or roll the negative equity into another loan if allowed
If the sale price is more than the payoff amount, collect the remaining equity after the lender is paid
Obtain a lien release from the lender once the loan is paid off
Transfer the title according to your state’s requirements
Cancel or transfer insurance after the sale is complete
Keep copies of all sale, payoff, and title documents