How To Sell Your Car To A Private Party When It's Not Paid Off Yet

An existing loan balance can make things a bit more complex, but it's definitely doable. Here are more detailed steps:

Get Your Loan Payoff Amount: Contact your lender to get the exact payoff amount for your car loan.
Find a Buyer: Advertise your car and find a private buyer interested in purchasing it.
Disclose Loan Status: Be transparent with the buyer about the fact that there is still a loan on the car.
Arrange Payment:

Option A: Escrow Service: Use an escrow service to handle the transaction. The buyer deposits the purchase amount into escrow, the escrow service pays off the loan, and the remaining amount goes to you. After the loan is paid off and the lender releases the title, the escrow service transfers the title to the buyer.
Option B: Direct Payment to Lender: The buyer can pay the loan payoff amount directly to your lender. This can be done in the presence of both parties to ensure trust. The lender then releases the lien and processes the title transfer to the buyer.
Option C: Loan Payoff Before Sale: If you have the financial means, you can pay off the loan yourself before selling the car. This simplifies the process but requires you to have funds available to cover the loan payoff.

Sign Over the Title: Once the loan is paid off and the lender releases the lien, you can sign over the title to the buyer. This process might vary depending on the state's regulations.
Bill of Sale and Documentation: Provide a bill of sale and any other required documentation to the buyer. This serves as proof of the transaction and protects both parties.
Notify Your Lender and DMV: Inform your lender that you've sold the car and ensure the DMV is updated with the new owner's information.
Finalize Transaction: Complete any remaining steps with the buyer, such as handing over the keys and any additional paperwork.