If I sell a car before I finish paying on it and don't buy another car, what happens to the loan?

Question

How much of the selling price do I get to keep, if any?

Answer 1

You will have to pay off the car or the place that you have the loan through will repossess the car. If you sell it for more than you owe then you pay off the balance and keep what is left. The loan will follow you for the rest of your life if you do not pay it and it will give you bad credit and you will not be able to get any more loans in your name.

Answer 2

Well it's imprtant to understand that the car and the loan are two seperate things and exist seperately. If you sell the car or even if the car is wrecked and totaled the loan doesn't just go away the loan is still yours to deal with. If you sell a car for more than the amount left on the loan then use that money to pay off the loan you are free and clear. Now in the case of a wrecked car the insurance pays the value of the car not the value of the loan. If you want to find out the value of your car try www.kbb.com. You could have someone take over payments on the loan but they would have to be approved by the loan company to do so.

Answer 3

You will still be responsible for the loan and would need to take care of that before you can sell the car. If you just want to get out of the car, you always have the option of getting someone to take over the payments. You wouldn't get much, if any, cash this way but you won't have the car payment. Also know that the person taking over the loan must be approved by a bank to do so.

Answer 4

Don't expect the loan will just disappear lol :) Unfortunately for you, you will have to continue and pay the loan. First of all check how much is left to pay and then try to sell your car at higheh price than the loan remaining.

Try to be a profitable dealer. GOOD LUCK

Answer 5

You have to pay off the loan. Anything over and above that, would be yours. You may not be able to sell the car until its completely paid off.

Answer 6

In able to sell the cae you have to pay the loan off first so that the other person can get the title. Any money left over would be yours.

Answer 7

Since this a private contract between you and you financer, it depends upon the terms and conditions. If there is condition in your loan agreement that you cant transfer the asset without your financer`s permission then you have to seek the same. Alternatively you may repay the entire or convince financer to pay entire amount out the sales proceeds which you will realise from the purchaser if you wish so. Further if you want to change your vehicle then you can give new vehicle in the place of old one and take permission to sell. Please note that generally there is clause in finance agreement to this effect and you have to comply with that otherwise brech of contract may lead to compensate/pay damages to financer. You have to take your financer into confidence.

Answer 8

You must pay the loan balance to get car title. The buyer of your car AND the loan company could get you in trouble without transferring the title to the new owner. (It's called fraud). IF you can pay the loan off, get the title and pass it to the buyer, you can keep whatever funds are left over.

Answer 9

You need to pay off the remaining balance owed on the car. Contact the dealer or finance company for the payoff amount. You can't just go ahead and sell it, because it is not paid for and you do not yet own it.

Answer 10

You keep whats left after the bank or where ever you got the loan from gets their money