You have a car. You have a loan. And you want to move on.
Maybe the payments are too high, or the car doesn’t fit your life anymore. Whatever the reason, you’re wondering if you can sell a car that isn’t technically yours yet.
The short answer? Yes, you absolutely can.
The longer answer? It depends on a few factors. But don’t worry—we’ll walk you through everything you need to know.
Understanding What You Owe
Before you do anything, you need to know your payoff amount. That’s the total you owe on your loan right now, not your monthly payment.
Call your lender or check your online account. This number changes every month because of interest, so get the current figure.
Once you have that number, compare it to what your car is worth. This is where things get interesting.
Positive Equity vs. Negative Equity
If your car is worth more than what you owe, you have positive equity. That’s good news. It means when you sell, you’ll pay off the loan and pocket the difference.
Example: Your car is worth $15,000 and you owe $12,000. You sell it, pay off the loan, and walk away with $3,000.
If you owe more than the car is worth, you have negative equity, also called being upside down on your loan. This is trickier, but still manageable.
Example: Your car is worth $10,000, but you owe $13,000. You’ll need to cover that $3,000 gap somehow.
How to Sell a Car with Positive Equity
This is the easier scenario. Here’s how it works:
- Get your payoff amount from your lender
- Sell your car to a buyer or service like Before U Trade
- Use the sale proceeds to pay off the loan
- Receive the remaining money
The lender will release the title once the loan is paid off, and the transaction is complete. Simple as that.
How to Sell a Car with Negative Equity
If you’re upside down, you have a few options:
Pay the Difference Out of Pocket
If you can afford it, this is the cleanest option. Sell the car, and cover the gap between the sale price and what you owe.
Roll It Into a New Loan
Some dealerships let you roll the negative equity into a new car loan. Be careful here—you’re starting your next loan already underwater.
Wait and Build Equity
If you can hold off, keep making payments until your loan balance drops below the car’s value. But remember, cars lose value every month, so this isn’t always realistic.
What About the Title?
Here’s something important: when you have a loan, the lender holds the title. You don’t physically have it.
When you sell your car, the lender will release the title once the loan is paid off. This can take a few days to a few weeks depending on your lender.
A reputable buyer like Before U Trade knows how to handle this process smoothly. We work directly with your lender to get everything squared away while you get paid.
Why Selling Makes Sense Even with a Loan
Maybe you’re still on the fence. Here’s why selling might be the right move:
- Stop monthly payments: If the payments are stretching your budget, selling frees up cash flow
- Lower insurance costs: No car, no insurance payment
- Avoid further depreciation: Cars lose value fast. The longer you wait, the less it’s worth
- Life changes: New job, new city, growing family—sometimes your car just doesn’t fit anymore
How Before U Trade Makes This Easy
Selling a car with a loan sounds complicated, but it doesn’t have to be. At Before U Trade, we handle the heavy lifting. Here’s how we do it:
- You get your instant offer online
- We contact your lender to get your payoff amount
- We pay off your loan directly
- You get the remaining funds immediately
No back-and-forth. No stress. No dealership games. Just a simple, honest transaction.
The Bottom Line
Yes, you can sell your car even if you still owe money on it. It happens every day.
Whether you have positive or negative equity, there’s a path forward. The key is knowing your numbers and working with someone who makes the process easy.
Ready to see what your car is worth? Get a free, no-obligation offer from Before U Trade today. We’ll handle the loan, the paperwork, and everything in between.
