It is common practice to sell a car with an existing loan. Some of your options are as follows:
- Pay off the remaining loan balance with your savings
- Sell the car to a used-car dealer
- Sell the car in a private-party transaction
Once you have decided on your option, please contact us so we can provide you with the current payoff amount if your loan is on our legacy lending platform, AutoPal. You can also locate the payoff amount on the "Loans" page if your loan is serviced by Happy Mango.
Next, you should find out your car's current market value. Websites that estimate the value of vehicles, such as Kelley Blue Book, Edmunds.com, or Cars.com, can help you learn more about your car's current worth.
It would be best if you also considered the car's equity (the difference between what you owe on your loan and what your car is worth). The vehicle has positive equity if its value exceeds the loan's payoff balance. Negative equity is present if the loan balance exceeds the car's current market value. Another name for a car with negative equity is an upside-down loan.
Please keep in mind that you must satisfy the payoff amount before we can transfer the title to you or the user-car dealer, or the private-party buyer. If you decided to sell your car please see the article How to Sell a Vehicle with an existing loan.
We wish you luck and recommend you contact your financial coach as your primary contact to assist you with the process if needed.