Selling a Financed Car will settle financing and pay you the balance

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How to Sell A Financed Car

Buying a vehicle usually comes with some type of car loan or financing. Unless you are lucky enough to purchase a car in cash, you will most likely have a 3-to-6-year loan on your vehicle. Even though this is the norm for most car buyers in America, it can cause some confusion when it comes time to sell your car or trade it in. Thankfully there are a few steps that can be taken to make sure you do everything correctly.

The first step is always understanding what you have left on your existing loan. From here, you can use many tools like to determine a fair market value on your used car. If your market value is greater than the existing loan, then you are in positive equity on your vehicle. If the loan amount is more than your car is worth, then you are in negative equity, or "underwater". When you are in positive equity, the buyer will pay the loan holder the remainder of the financing, and you will receive a check for the rest. With negative equity, they will pay off the value of the vehicle, and you will be responsible for paying off the rest. But don't worry, the team at is here to help you with all of those steps.

Understand Your Buyer

The most important thing when selling a financed car, is understanding just who you are selling to. When selling privately, financing and loans may cause some skepticism from potential buyers. Buying agencies and dealerships are going to be much better equipped to handle and complications from lenders or existing financing.

If you are persistent on selling privately, it is important to be as up front as possible, and have all of the details on the loan available from the lender. Present this information before any potential test drives. Tell them you have spoken to the bank and know exactly how to move forward. It is never a bad thing to pay off the loan on your own prior to listing the vehicle.

Frequently Asked Questions

Can You Sell a Financed Car?

Yes, selling a financiered car is fairly simple. The important thing is making sure the loan is cleared before the title transfer process takes place. Whether the seller pays it off prior, or uses the sale price to pay off the loan, selling a financed car is possible.

What If My Car is Worth Less Than I Owe?

Being "underwater" on your vehicle is not great, but doesn't make selling it impossible. You can easily put the full price of your car towards the loan, but will need to cover that balance before completing the transfer process.

Can Selling a Financed Car Hurt My Credit?

Paying off your loan on time should not hurt your credit. If the amount you sell for does not cover the full amount, you can always refinance or payoff the rest of the loan out of pocket. A loan that shows "paid in full" will always look best on credit scores.

How Can I Transfer the Title?

A dealer, or buying agency like will take care of the legwork in selling your car. If you are selling privately, then it is on the buyer and seller to work with their local Department of Motor Vehicles, or state titling agency to handle the paperwork.

Avoid the Hassle, Sell to We Buy Any Car® is equipped to handle all of your used car selling needs. Loan or no loan, we will buy your car and have you paid in about one hour. Our expert car buyers are prepared to walk you through the entire process, and can assist with any speedbumps that may come up along the way. So what are you waiting for? Get your free online valuation today!