Can I Sell My Car When I Still Have a Loan?

Selling a Car With a Loan on It With Twin City Hyundai

When it's time to trade in or sell a vehicle, one of the most common questions we get at the dealership is whether or not you can sell a vehicle that you still owe money on. While the simple answer is yes, there are some nuances that you should know about before selling your vehicle in the Alcoa area.

Can I Sell My Car When I Still Have a Loan On It?

Yes! And typically, once you've decided you no longer need the car, it is best to sell it sooner rather than later. Most vehicles depreciate year-over-year, so keeping the car longer simply decreases its value. This may not be relevant in some cases - such as collector or limited-production vehicles. Additionally, sports cars and convertibles typically see an increase in value locally when the weather is nice.

Selling Your Financed Vehicle to a Dealership

Selling your financed vehicle to a dealership isn't complicated.

1. Contact the lienholder (bank, credit union, or another lender that you've financed the vehicle through) and get a payoff quote. This is typically valid for ten days.


2. Contact a dealership and see what they are willing to pay for your vehicle.


3. Calculate any positive or negative equity you have in the vehicle. Positive equity is an appraised value greater than the payoff quote and is money in your pocket - or towards a new vehicle. Negative equity is the balance you will owe the lienholder and is the difference between the value of the car and the payoff, should the value be less than the payoff.

More Questions? Stop by Twin City Hyundai Today

Whether you'd like to sell your vehicle and walk away or trade it towards a new Hyundai car, truck, or SUV, consider stopping by our dealership and learning more about selling your financed vehicle. We look forward to helping you through the process.