how to sell to private party if I still owe on my car?

Asked by Aug 16, 2017 at 08:22 PM

Question type: Car Selling & Trading In

I want to sell my car to private party, but don't hold title as I am still paying on it.
How does that work?

3 Answers


Reach out to your lien holder to see how they want to proceed. Most likely it will pay off the lien with the funds received and you give a bill of sale to the buyer.

1 people found this helpful.

Easy as pie. If you have a lien on the vehicle (i.e a loan out/you're paying on the car), you put your car up for sale on the top best websites. Why not pay 20-40$ per site when you're going to make a couple thousand? Sounds good to me. Then when you find a buyer, only accept cash or cashier's check, no funny games. Plenty of scammers will tell you to email them on another email account. Just call them and see if the number is legit. Do not respond to those who say they're out of town, etc. When you find a buyer, you'll get enough $$ in hand - take that to the bank. Pay off the vehicle. Before you actually pay off the vehicle, you'll have to go to the bank and do a Bill of Sale (showing who sold it, who bought it, and for how much). Double check on this, I think it's for cars no older then like 5 years old or something. If you have more then $5k in funds, even if it is a money order/certified cashier's check it will take 24 hours to clear. Go back to the bank the next day, they will give you receipt/show payoff has been made. The bank will take 1-2 weeks I think to send you the title. After you get it, you'll then pass that on/mail it to the new vehicle owners so they can use that to register the car in their name. Make sure that the new car owners send you back the tags so you can turn them in.


Do the transaction at your lenders office. They should take care of the DMV paperwork as well.

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