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 after the sale
If the car is worth less than the payoff, prepare to cover the remaining balance
Contact your lender to learn their required payoff and title transfer process
Gather the title, registration, loan account details, and maintenance records
Get the car appraised or use trusted pricing tools to set a realistic selling price
Disclose that the car has an active loan to potential buyers
Find a buyer willing to complete the transaction with a financed vehicle
Arrange payment through a secure method approved by the lender
Use the buyer’s payment to pay off the loan directly with the lender
If the lender holds the title, have them release it after the loan is satisfied
If the sale price is lower than the payoff, pay the difference to clear the loan
Complete the bill of sale and any state-required transfer documents
Remove the vehicle from your insurance after the sale is finalized
Notify your state DMV or licensing agency of the sale if required
Keep copies of all payoff, sale, and title transfer documents