Can I sell or trade in my car if I still have an auto loan on it?

Can you sell or trade in your car if you still have a loan?

Yes! But the loan has to be paid off first.

In a private sale, the buyer’s payment usually goes to your lender to clear the loan before the title transfers. With a trade-in, the dealer handles paying off your loan as part of the deal.

If your car’s worth more than you owe (positive equity), that extra cash can go toward your next car or back to you. If you owe more than it’s worth (negative equity), you’ll need to cover the difference or roll it into your new loan.

The important part: The lender must be paid off to release the title — but it’s a common, straightforward process!