Can You Sell a Financed Car?

November 29th, 2021 by

There comes a time for most car owners when they want to sell their current vehicle. Maybe you’re looking to buy something new or maybe you just don’t need your vehicle anymore. Whatever the reason, when this time comes, you have to decide where to sell it. However, if you’ve financed your vehicle and have not finished paying it off, this can complicate the situation a little bit. Below, we’ll outline the steps you should follow if you want to sell your financed car.


A calculator and pen next to some notes

Accountant Accounting Adviser” licensed under Pixabay by Shutterbug75

First, it’s important to understand how car financing works. With car financing, you are essentially taking out a loan to pay for a vehicle, agreeing to pay the loan back over time with interest. Car financing is a great option for people who are looking to buy a new car but don’t necessarily have all of the necessary money saved up.

In addition, many locations provide financing despite bad credit, which isn’t always the case for car leases. However, paying off a car finance loan takes time, and you may want to sell your car before that time arrives. This leaves people wondering if they can sell a financed car.


The first thing you’ll want to do is determine the current value of your vehicle. All vehicles depreciate in value over time so it’s important to figure out exactly how much value your car still has. Doing so can help you determine how much to sell it for once you find a seller.

To determine the value of your vehicle, you have a few options. An easy option is to use an online car valuation tool. Through one of these tools, you simply input information about your vehicle and receive an estimated value. For example, the tool may ask you for the number of miles on your car, the year it was made, any accidents it’s been in, and the overall condition of the vehicle. Using this information, plus your location, you’ll receive an estimated value for your car.

The other option is to take your vehicle to a car dealership and ask them to provide a valuation for your car. The dealership will then perform a thorough inspection of your vehicle and determine how much they would buy it for. The true value of your vehicle is essentially what someone is willing to pay for it, but between online tools and dealership estimations, you should have a rough idea as to what this number is.


After you figure out the value of your vehicle, you should then determine how much you still owe on your car loan. To do this, you’ll want to contact your loan provider and ask them to provide you with a payoff letter. A payoff letter is a written document that contains exactly how much you owe on the vehicle, including interest payments. It’s important to know what this number is as it will factor into what you can sell the car for.

Another thing to keep in mind about how much you owe is the concept of negative equity. Negative equity is when you owe more on your car loan than the total value of the vehicle. If you have negative equity, it may not make sense to sell your vehicle, as you’re actually losing money on the sale. For example, if you owe $6,000 on a car that’s worth $5,000, selling it would still mean you’re in debt for $1,000. Now, not only do you still have a debt, but you don’t have a car. Consider if you have negative equity before selling your vehicle, as it can impact whether you should wait to sell or what price to seek for your vehicle.


If you decide that you want to sell your financed car, the next step is to figure out how to sell it. Your best option is to try and pay off the loan first. If you only have a little bit left on your finance payments, paying them off can help you sell your vehicle for more.

However, some people do not want to wait before selling off their financed vehicle. If you’re one of them, you should look to sell your vehicle to a dealership rather than privately. The reason for this is that dealerships buy financed vehicles all the time. They are more equipped to handle the process and will make everything much smoother. In addition, if you’re looking to buy another vehicle, you can do this right at the same dealership and often factor the cost of the sale into the new car purchase.

If you want to sell your financed car, look for a local dealership. They make it easy when it comes to car loan terminations and will often offer you a price close to the car’s true value. They can even work with you if you’re dealing with negative equity.


Just because you owe some money on your car financing loan doesn’t mean you can’t sell it early. This sort of thing happens all the time and it’s a process that North Coast Auto Mall excels at. If you’re interested in selling your financed car in Bedford, Ohio, we are here to help. All you have to do is contact us today or schedule a time to visit our dealership.

Once you’re here, we’ll conduct an inspection of your vehicle and make you an offer on your vehicle. We can then help you find your next car or you can put the money from the sale right into your bank account. We’ve helped countless people in Bedford sell their financed vehicles and now we want to help you too. Don’t let the fact that you still owe money on your car loan keep you from selling it early. With our help, you can sell it quickly and with little hassle, so contact us today to get started.

Posted in Financing