Selling a Car with a Lien

When you’re selling a car with a lien on it, you’ll need to take a few extra steps and make absolutely sure you follow the right procedure. It’s not illegal to sell a vehicle with a lien on it, but the sale must pay off the loan and fully transfer the title to the vehicle’s new owner.

Is the Vehicle Worth Enough to Sell?

Before you decide to sell a vehicle with a lien on it, you’ll need to make sure it has enough equity – that simply means that it has enough value.

• If you owe the lender more than the vehicle is worth, the loan will be paid off in full when the vehicle is sold. Anything left will be profit.
• If there’s no equity in the vehicle, you can only sell if it’s sold for the amount owed, which is nice since you’ll no longer need to make monthly payments.
• If there’s negative equity, you’ll need to cover the difference between the sale price and remaining loan balance, so it’s usually not worth the trouble.

How Should You Sell a Vehicle with a Lien?

You can either sell through a dealer or via private sale. Going through a dealer is less complicated and tiresome than looking for buyers in Herculaneum, St. Louis, and Florissant, especially when the vehicle has a lien on it.

A dealer can appraise the vehicle, pay off the loan, and then give you a check for the remaining value, which is often used as a down payment for the next car. They’ll then get a release of lien letter from your lender. Selling privately takes longer, though you may be able to get a slightly higher price. Just make sure you’re upfront about the fact the vehicle has a lien on it.

Green Light Auto Credit Can Assist with All Financing Needs

For answers to common auto financing queries, such as, “Can you transfer a car loan to someone else?“, or any further questions about selling a car with a lien on it, don’t hesitate to visit Green Light Auto Credit or contact us directly.

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