You have a title loan, but you want to sell the car. Maybe you want to downgrade to a cheaper vehicle or just get rid of the loan payments. Can you sell a car you don't technically hold the title for?
Yes, but you cannot hide the loan from the buyer.
The Process
- Get the Payoff Quote: Call your lender and get the exact "10-day payoff amount."
- Find a Buyer: Be honest. "I have a loan on this car, so we will need to pay the lender off during the sale."
- The Transaction:
- If selling to a dealer (CarMax, dealership): This is easy. They handle all the paperwork. They pay the lender, give you the difference, and handle the title.
- If selling to a private party: Meet at the lender's office if possible. The buyer pays the lender the loan balance directly. The lender hands the title to the buyer (or releases the lien). You keep any profit leftover.
Never try to sell the car without disclosing the lien. That is fraud.
S
Sarah Jenkins
Financial EditorSarah is a financial expert with over 10 years of experience in consumer lending. She is dedicated to transparency in the lending market.
