# How to sell a financed car (with pictures)

Selling a financed car can seem a bit complicated. After all, the lender who finances your car is technically the owner until you pay it off. That can make buyers a bit nervous when you're trying to sell your car, preferring not to delay getting the property. However, you can take steps to reassure the buyer. Start by calculating the net worth of your car, which can help you determine how much you will earn from selling it. You can then find a buyer and use the lender to pass the title to them.

## Steps

### Part 1 of 4: Determine the Value of Your Car

#### Step 1. Call your loan company for the payment amount

The first thing to do is calculate how much it will cost to pay off the car loan. The easiest way to do this is to call the car company to request the payment amount. That's what you have left to pay on the loan plus the prepayment fees.

#### Step 2. Determine the value of your car

It is also essential to know what the market value of your car is. Find the fair market value of your car. You can find this information at places like Edmunds.com or Kelly Blue Book, both available online.

### You will need information such as your car's make and model, year, and condition to determine the value

#### Step 3. Find out if you have a negative value

Another term for this situation is being "upside down" on your loan. Basically, it means that you owe more for the car than it is worth. To find out if you are in this situation, subtract what you owe from what the car is worth. If it's a negative number, you have a negative value.

• For example, if you owe \$ 10,000 and the car is only worth \$ 9,000, you will subtract \$ 10,000 from \$ 9,000 (\$ 9,000 - \$ 10,000), which means your "value" is - \$ 1,000. That is negative value.
• On the other hand, if you owe \$ 8,000 and the car is worth \$ 12,000, you will subtract \$ 8,000 from \$ 2,000 (\$ 12,000 - \$ 8,000), which means you have \$ 4,000 worth of the car.
• Ideally, you want to sell your car for enough to cover the entire loan. However, if it's not valued enough, you probably won't be able to get as much. Try to set it at or near fair market value.

### Part 2 of 4: Find a buyer

#### Step 1. List the car for sale in various places

You can use car-specific sites like www.autotrader.com, www.cars.com, or www.instamotor.com. However, you can also use local sales sites like Facebook Market and Craigslist, as well as place an ad in the local newspaper.

#### Step 2. Create the ad

Be sure to list all the relevant details in your listing, including the make, model, year, and condition of your car. With online sites, take clear photos that show the entire exterior and interior of the vehicle. Taking a picture of the mileage is also a good idea.

• Indicates the sale price. You can also add "OBO", which means "or best offer" in English, if you're willing to haggle.
• It's also a good idea to note in the ad that the car is financed, so the buyer knows what they are getting into.

#### Step 3. Wait for potential buyers

After placing your ad, take the time to receive calls and messages from potential buyers. Which user you choose is up to you, but it's a good idea to vet buyers. Try asking some engaging questions to familiarize yourself with the buyer. Ask them what they are looking for and why they are interested in the car. That can help you assess whether they are serious or not.

### Keep in mind that potential buyers will want to see and drive the car. Meet in a public place and take someone with you. Also, be sure to take your cell phone with you

#### Step 4. Agree on a price

If you are willing to haggle, you can find a buyer more quickly. However, you will still have to agree on a price. Keep your value in mind while haggling, as you don't want to put yourself in a bad financial position. You will have to pay what the buyer does not cover in your loan.

### Part 3 of 4: Pass the title to the buyer

#### Step 1. Ask about the lender's procedures for selling a car

When you sell a car that you still owe, you don't actually own the title. Essentially, the lender will be selling the car. Talk to your lender about the procedures they have in place to get the buyer title quickly.

#### Step 2. Have the buyer make the payment to the bank

Because your car is financed, some buyers can get a little nervous. If they give you the money, you can either pay for the car and keep the title, or keep the money and not pay for the car at all, which means it will still be under financing. Neither of these options will make the buyer happy, not to mention that they are illegal. However, to make them feel comfortable, you can ask them to make the payment directly to the bank by cash or check.

#### Step 3. Pay off any extra amounts owed on the loan

If you owe more to the lender than the buyer is willing to pay, it is your responsibility to pay the remainder of the loan. You will have to do this when you sell the car so that the title can be transferred.

You will need a bill of sale and a disclaimer, which you can usually print from the Department of Motor Vehicles (DMV) website. You can also pick them up in person.

### For the bill of sale, you will need things like the vehicle identification number and the mileage on the odometer

#### Step 5. Meet at one of the lender's locations to make the sale

In most cases, it is best to make the sale at the bank with the buyer. That way, if you have any questions, the lender is there to answer them, as well as provide the paperwork and notarize it as needed. In addition, this gives a formality to the sale and the lender can deliver the title to the buyer.

### Remove the license plates before the sale is finished

#### Step 6. Obtain a temporary operating permit for out-of-state buyers

Obviously, you won't always be able to meet with the buyer to sell your car. In that case, you will need to take the bill of sale to your local DMV. They can issue the buyer a temporary operating permit until title appears.

### Part 4 of 4: Closing the sale

#### Step 1. File the liability release

Once you have made the sale, you will need to file the liability release with the department of motor vehicles. You can usually submit the form or mail it in.

### This form relieves you of future liability, which means that if the buyer commits a crime in the car, you are not responsible

#### Step 2. Pay the transfer fees to the DMV

Once you've made the sale, pay the necessary fees to the DMV. You will need to check with your local DMV to find out what those fees are.

#### Step 3. Cancel your insurance

Once you are done with the sale, call your insurance company to stop the insurance. That way, you won't pay for coverage you don't need.