When you owe more than your car is worth, you have to give the lender the difference between the sale price and what you owe.
The buyer will pay the sale amount to the lender.
Can I sell my car if its not paid off?
It’s certainly possible to sell your car even if the loan isn’t paid off, although it’s a slightly difficult process. It’s best to sell the car yourself, as selling a car you don’t legally own through a car dealer can be very expensive.
Can you sell a car you still owe money on?
Selling a car can be a complicated process, and it’s even more intimidating if you still owe money on the vehicle you’re selling. Pay off the remaining debt – possibly with the sales proceeds from your buyer, and any extra funds that you bring to the table (if your car loan is upside-down).
Should I pay off my car before trading it in?
When You Should Wait to Trade In
It’s not worth wrecking your financial future for a newer set of wheels. When you have prepayment penalties. When a lender agrees to a car loan, they are counting on earning interest off of you for a set amount of time.
Will CarMax buy my car if I still owe money on it?
In some cases, the negative equity can be included in your financing when you buy a CarMax car. CarMax Car Buying Centers can accept cashier’s or certified checks and certified funds. CarMax stores also accept cash and debit cards. If the amount you owe is less than $250, we will accept a personal check.