How do you sell a car that you still owe money on? ?

Question

The only thing I can think of would be that they give you enough money to pay off the car up front. You pay off the car and when you get the title you give it to them. It does not seem that people would want to do that?

Answer 1

If someone buys the car, you pay it off and the lender sends you a free and clear title which you give to buyer

Answer 2

You borrow the money from the bank and pay off the car before you sell it, then when you receive money from the sale, you pay off the bank.

Answer 3

I think this article answers it better than I can:

http://www.firstcarguide.com/faqs/how-do...

Answer 4

yeah that doesnt seem like an ideal way to buy or sell a car..

you couldd go to a dealership and trade in your car, theyll pay off the loan you already have on it.

but beware, they usually tack that amount that they paid off for you on the new loan

Answer 5

1. Contact your bank/lender to make sure that the title will be available at a local branch or office.

2. Make the deal with the buyer.  Don't get into the detail of title transfer until you have a deal.  If asked about clear title, answer "Yes, the title is available"  It's true: see #1, above.  Once you have an agreement, then clarify: "The title is available, we just have to conduct this transaction at the Bank to get it."

3. Conduct the transfer of money AT the branch or office where the title is, so that YOU pay the BANK, then the Bank/lender can sign off on the title  for you.

4. The Buyer leaves with a title and a car

5. You walk home with cash.

I've done this more than once.  Buyer's won't give you money without exchanging for the title, but they won't mind doing the transaction at the bank so long as there is no delay in getting the title to them.