Selling a car you are still financing
- When to sell. Of course, it is better not to sell it at all if you still owe money on it, but if necessary you can, because it is not impossible.
- The hard part when selling a car that you are still financing is finding a buyer.
This is because you can’t hand it the car’s title unless you finish paying for it. You may have an advantage if the car is newer. First get in touch with the Department of Motor Vehicles for the paperwork and title transfers. Also get in touch with the bank too for the required regulations. Until there is a lien on the car you can’t transfer the title. Anyway, you have the option to transfer the liabilities of the payments to another party.
- If you want to avoid selling the car to a private buyer you can go for the trade in option. When you do so you transfer the liabilities of the car to the dealership and all it takes is a little paperwork. Make sure you don’t get into another loan, so do some research first.