Can you sell a car when you still have a big car loan to payoff?

Selling a Car with an Existing Loan

• I'm by no means an expert, and I'm sort of stuck in a similar situation myself. However... I do have one suggestion. Perhaps you could refinance your vehicle with some place like People First Lending or Capital One lending, in order to lower your interest rate to something manageable. Shop around for quotes, perhaps you could find something. If you find a better solution though, let me know. I need my 98 eclipse GONE before someone else decides to steal it again!

• I am on the opposite end of this story in a way. I sold my cousin a car for $13,000, interest free, 3 1/2 years ago. He just started making payments on it even though he sold it and used the money to put a down payment on another vehicle. Legally, there is still a lien on the car and that lien should have been paid as soon as he sold the car. In your case you could sell the car but the remainder owing would be due upon selling it. It might be a way to get out of it, but it's very unlikely that you will be able to sell it for enough to cover the remainder.

• Yes you can, but you will be what is called upside-down. It's never a good idea. And I can promise you, you had better ask for GAP INSURANCE that day! It is optional. It covers you if your vehicle is totalled and the insurance company will not pay you more than what it is worth. Which will absolutely not cover what you owe, and you WILL be responsible for the balance legally -- there's nothing you can do about it. Not much good at this point, but the next time you take out a car loan, pay attention to the depreciation of a vehicle. Toyota's, Subaru's, and other foreign cars hold their value much longer than standard American cars by almost half. Also, depending on what kind of loan you have on the vehicle would depend on whether or not you could make an extra payment or two. If you can make an extra payment, you should never put them on the same check. You have to mail two checks, one as payment, and the other you have to right in the statements that it is to be applied to the principle otherwise you just made and extra payment to interest and lost that extra money you coughed out. You can also make the extra principal payment in any amount. The best thing to do is sell your vehicle out-right to a private party. Do the math and consider all your options and why you really want to get rid of it. I am a loan officer, Real Estate Broker and licensed in and experienced in many many things.

• Can a cosigner take your car away?
• Can you trade in a car that is ten months past due and is worth less than a quarter of what is owed for a new car and new loan even though you would be even more upside down would any lender do that?
• How do you refinance a 10 year old car?