Jul 28, 2025 / Uncategorized

How to Sell Your Car When You Still Owe on Your Loan

Wanna sell your car but still owe money on it? No worries! An outstanding loan might take a few extra steps, but it’s totally doable. With a little planning and a lot of know-how from your local credit union (that’s us!), you can sell your car, pay off your loan, and maybe even walk away with a little bonus cash in your bank account.

At Utah First, we’re here to help you get the best deal possible with an easy, stress-free process. Whether you’re upgrading, downsizing, or just ready for something new, here’s everything you need to know about selling a car with a loan balance.

Step 1: Know What You Owe (AKA Your Payoff Amount)

Before you list your car on KSL and slap a ‘for sale’ sign on the windshield, first things first: Figure out how much you still owe on your loan — or your ‘payoff amount.’ This number may not always match your current loan balance since it includes accrued interest.  

Here are several ways to find your payoff amount:

Once you’ve got this figure, you’ll know exactly what price you need to sell your car to break even — or better yet, make a little extra. 

Step 2: Figure Out What Your Car’s Worth

Now that you know what you owe, it’s time to find out how much your car is going for out in the wild. This step is all about setting a price that’s competitive but also keeps you from accidentally selling your vehicle for less than you still owe!

Here’s how to size up your ride:

  • Check Kelley Blue Book (KBB) or Edmunds for a quick estimate.
  • Browse dealership listings for similar makes, models, and mileage.
  • Scope out online marketplaces, like KSL Classifieds, Facebook Marketplace, Craigslist, or Autotrader, for real-world pricing.

Once you’ve got a ballpark value, compare it to your loan payoff:

  • If your car’s worth MORE than you owe — nice! Sell it, pay off the loan, and pocket the leftover cash.
  • If your car is worth LESS than what you owe, no biggie. You’ll just need to cover the difference or explore a few creative options (don’t worry, we’ll get to that).

Either way, knowledge = power. Let’s keep rolling.

Step 3: Pick Your Selling Style

You’ve got options when it comes to offloading your ride. The right one just depends on how much effort you’re willing to put in and how much cash you want to walk away with. Here’s the rundown.

Option 1: Sell It to a Private Buyer

Private sales usually help you pocket more cash, but they require a little extra work. If you’re down to hustle a little, this can be your biggest win.

Pros: More money in your pocket, total control over the sale
Cons: A few extra steps and logistics to handle

Here’s how it works:

  1. Find a buyer who loves your car as much as you do.
  2. Agree on a fair selling price.
  3. The buyer will pay you (or Utah First directly).
  4. You’ll use the money to pay off your loan.
  5. Once the loan is paid off, Utah First will release the title.
  6. You hand over the title and keys like the savvy seller you’ve just become!

Pro tip: If you sell privately, let the buyer know that Utah First holds the title. Some buyers feel better sealing the deal at the credit union for peace of mind (and candy money, of course).

Option 2: Trade It in at a Dealership

Not up for meeting strangers or dealing with the hassle of private sales? Trading in your car at a dealership is a quick and easy option. 

Pros: Fast, simple, doesn’t require an awkward meetup in the grocery store parking lot
Cons: Get less money than a private sale

How it works:

  1. The dealership will appraise your car and offer a trade-in value.
  2. The first offer is never their best — so smile, haggle, and ask for more! They’re expecting it.
  3. If the offer is more than your loan balance, they pay it off and apply the extra to your new car.
  4. If it’s less, you can roll the difference into your next loan (just be wary of negative equity!).

Option 3: Sell It to a Car-Buying Service

Need to move fast? Companies like CarMax, Carvana, or local wholesalers will buy your car on the spot.

Pros: Instant offer, zero hassle
Cons: Usually not the highest bid

How it works:

  1. Get a quote from the car-buying service (online or in person).
  2. If you accept, they pay off your loan and cut you a check for whatever’s left.
  3. They handle most of the paperwork for you, so you can drive off without lifting a finger.

This option is great if you want to sell your car with minimal fuss and be done by lunch!

Step 4: Pay It Off and Pass It On (the Title, That Is!)

Sold your car? Sweet! Now, it’s time to pay off the loan like a pro and hand over the title. Here’s how it works, depending on how you sold your ride:

  • Sold it privately? The buyer (or their lender) sends the loan payoff straight to Utah First. We’ll work our magic behind the scenes to release and transfer the title.
  • Traded it in or used a buying service? The dealership or service will take care of paying off your loan and handle all the title paperwork for you. Easy peasy.

Heads up: If your car sold for less than what you’ve got on your current loan balance (negative equity), you’ll need to cover the leftover amount before we can release the title. But don’t stress! We might be able to hook you up with a small personal loan to close the gap. One last signature, and you’re off to your next adventure.

Step 5: Celebrate Your Successful Sale! 

Once your loan is paid off and the title is transferred, you’re officially free from your old vehicle! Time to enjoy that sweet sense of closure with a little extra cash in hand to pad your savings, book that vacation, or upgrade to a newer vehicle. You’ve earned it! We’ll be over here with the high fives, cheering on your next big move.

Let Utah First Help You Close the Deal (and Open a New One)!

Selling a car with a loan may feel like a lot, but it doesn’t have to be with Utah First on your side. Whether you need your payoff amount, want to refinance, or finance a shiny new upgrade, we’ve got you covered with the awesome rates, flexible terms, and personable support to make your next move smooth. 

Questions? We’re all ears. Swing by a branch, give us a call, or reach out online.
Ready to snag your next loan? Get started online in minutes!

Selling your car should be exciting, not stressful. Let Utah First help you navigate the process with confidence!