New
Used

One question
to tailor your experience

Help us personalize your CarEdge experience — it only takes a second.

When do you plan to buy a car?

Your answers help us personalize your CarEdge journey — we’ll follow up with tips and next steps that match your buying timeline.

Skip
Should You Sell Your Car Now Or Wait? Time Your Trade-In Right

Should You Sell Your Car Now Or Wait? Time Your Trade-In Right

If you’re asking, “When is a good time to sell your car?”, the answer is almost always sooner rather than later. In general, your car is worth more today than it will be tomorrow. However, there are nuances for some drivers that can change the dynamic. Here’s a closer look at when selling makes the most sense, and when waiting won’t hurt.

2025 Is Almost Here

As the calendar approaches 2025, it’s important to recognize that your car’s value will drop significantly once the new year begins. On January 1st, your vehicle will effectively be considered a year older, even if it hasn’t aged by much in terms of mileage or condition. This is because most car buyers and dealerships use model year as a primary factor in determining value. If you’re thinking about selling or trading in your vehicle, now is the time to act before the new model year triggers additional depreciation.

👉 We track used car prices weekly

Mileage Matters: Watch Out for Costly Milestones

Mileage plays a big role in determining a car’s resale value. Two critical thresholds where cars typically lose significant value are at 100,000 miles and 150,000 miles. Once a vehicle crosses 100,000 miles, it’s seen as a higher maintenance risk, which can reduce its value by up to 20%. At 150,000 miles, the depreciation steepens further, as buyers become wary of potential expensive repairs. If your car is approaching one of these milestones, it may be time to consider selling before the value drops significantly.

If You Don’t Sell Before Year’s End, Wait for Tax Refund Season

If you decide not to sell before the end of 2024, your next best option is to wait until the spring, when tax refund season fuels a surge in used car demand. Historically, many buyers use tax refunds to purchase used vehicles, making it an ideal time to sell and get a better price. As demand rises, so do resale values. Timing your sale around this season can help you maximize your car’s value.

How Hurricanes Impact the Used Car Market

Hurricanes Milton and Helene brought devastation to the Southeastern US in October. As the cleanup continues, the new and used car markets are beginning to feel the impacts. With a large number of vehicles damaged by flood waters and wind, thousands of cars were taken off of the market for the time being. This has created a spike in demand and pricing, which could work in favor of sellers. However, keep in mind that replacing your car during this shortage may be more expensive, and the risk of flooded cars on the market warrants caution for car buyers and sellers alike. 

All-Wheel Drive Vehicles: Sell Before Winter Ends

For those owning all-wheel drive (AWD) vehicles, selling now is a strategic move. AWD cars and SUVs are highly desirable in cold climates, making this the season when demand (and therefore resale value) peaks. As winter fades and spring approaches, buyers become less interested in AWD vehicles, leading to lower offers. By timing your sale to match seasonal demand, you can justify a higher selling price, putting more money in your pocket.

Check out the best cars and SUVs for winter driving

The Bottom Line: Should You Sell Now or Wait?

In general, holding onto a vehicle means watching its value decline. When it comes to playing it smart, the rule of thumb is to sell when demand is high and before your car depreciates further. Stay informed about your car’s depreciation with the CarEdge Research Hub, where you can compare depreciation, total cost of ownership, and more to make an educated decision about your next move. It’s free data for all!

Is It Better To Sell Or Trade-In Your Car? 10 Considerations To Help You Decide

Is It Better To Sell Or Trade-In Your Car? 10 Considerations To Help You Decide

It’s time to say goodbye to your old reliable car, but should you sell it privately or trade it in? Both options have their pros and cons, but with the right approach, you can minimize financial losses. Here are 10 tips to help you make the best decision.

10 Car-Selling Tips To Consider

sell or trade in

1. Don’t name your price first

If a salesperson asks how much you want for your car, don’t give them a number. Let them make the first offer to avoid limiting your potential trade-in value. If asked, let them know that your primary interest is minimizing your net cost, or trade difference, after an allowance for your trade.  Avoid providing any firm numbers, despite their repeated attempts to enquire, as they will be resolute in getting you to throw out the first number.  

2. Tax benefits of trading in

Trading in your vehicle at the dealership can save you on sales tax. When you trade-in, you subtract the value of your car from the sales price of the new one, and you only pay sales tax on the difference in value. For example, if your trade-in is worth $20,000 and your state has a 5% tax, you could save $1,000 compared to selling it privately.

3. Don’t clean the car too early

If you’re just browsing, don’t clean out your car beforehand. A spotless trunk signals you’re ready to buy, potentially weakening your negotiation position.

4. Watch out for the higher offer trick

Dealerships may offer more for your trade-in but mark up the price of the new car. Don’t be fooled by the dealer that simply offers you the highest price for your car, as they may be getting you on the other side. Always look at the total cost.

5. Fix the obvious issues

If selling privately, get the obvious repairs fixed up front, and perform the routine service, like an oil and filter change. If your vehicle needs obvious repairs, private buyers will discount its value by at least 2X of the cost of the repair, as they will be concerned that it can’t be fixed, or that repairs will end up being more costly.  Buyers don’t want to inherit a problem; they want a car that they can drive home with confidence, and is trouble-free.

6. Check your car’s history report

Run a vehicle history report before selling. Surprises on a report could deter buyers or lower your asking price. If you’re the original owner and have never had any problems or accidents, it’s possible to skip this step.

7. Organize vehicle documentation

Present your service records and manuals in an organized manner to instill buyer confidence. If you have them, make sure to include the vehicle registration, window sticker and any operating manuals that you received, so that you can present them to any possible buyer.  

8. Trade where it makes sense

If your trade-in doesn’t match the dealership’s typical inventory, expect a lower offer. If you are at the BMW dealership, and you’re looking to trade in your 10 year-old Corolla with 120,000 miles, don’t expect a good offer. They won’t want your car, and will sell it straight to a wholesaler. Keep this in mind when thinking about a trade-in. 

9. Meet in a public place

For safety, meet prospective buyers in public spaces like designated safe meeting zones rather than your home.

10. Pay off loans before selling

If possible, pay off any loans before selling. Having a clean title in hand, goes a long way towards resulting in a seamless transaction, versus having to get a bank involved. Sometimes banks will take weeks to send you a title that is free of liens, and that is enough to sour a lot of car deals. Similarly, make sure that you ask the private buyer how they intend to pay for the car. 

Conclusion

Selling or trading your car doesn’t have to be stressful. By fixing minor issues, getting paperwork in order, and strategically timing your sale, you’ll increase your chances of getting a good offer. The more certainty you provide the buyer, the more they’ll be willing to pay. Learn more about resale values with CarEdge Research.

The 10 Cars, Trucks, and SUVs with the Best Resale Value in 2024

The 10 Cars, Trucks, and SUVs with the Best Resale Value in 2024

Did you know that depreciation makes up the biggest portion of the total cost of car ownership? When it comes to buying a new car, it’s important to consider how well it holds its value over time. Depreciation is the difference between the original sales price, and what the vehicle will be worth in the future. Some vehicles depreciate faster than others. 

In this 2024 update, Toyota continues to dominate the list of cars with the best resale value, with multiple models making an appearance. Honda follows closely, proving once again that both brands know how to build cars that hold their value. Let’s take a look at the top contenders in terms of resale value in the first five years of ownership.

Jeep Wrangler

Jeep Wrangler depreciation and resale value

5-Year Residual Value: 75% 

The Jeep Wrangler has long been known for its ability to retain value. After five years, it’s expected to depreciate just 34%, leaving you with a resale value of around $38,610 if you buy at today’s average selling price of $58,209. For off-road adventurers, the Wrangler’s value retention makes it a solid investment. See our full depreciation breakdown. 

Browse Wrangler listings with local market data

Toyota 4Runner

Toyota 4Runner depreciation and resale value

5-Year Residual Value: 74% 

After a what feels like a lifetime, the 4Runner is getting a big refresh for 2025. We see no reason to worry about this legend’s reliability with the refresh, nor any damage to it’s phenomenal resale value.

Under normal ownership conditions, the Toyota 4Runner will depreciate just 39% after five years under normal use. With today’s average selling prices, this results in a resale value of about $31,593. If you’re looking for an SUV that holds its value while offering reliable performance, the 2025 4Runner should be on your short list. See our full depreciation breakdown. 

Browse 4Runner listings with local market data

Toyota Land Cruiser

Toyota Land Cruiser depreciation and resale value

5-Year Residual Value: 74%

The Land Cruiser is back after a short hiatus. As expensive cars sadly become the norm, it makes sense that Toyota would resurrect their luxury SUV with impressive off-road prowess. It’s quite expensive, especially for a Toyota. Today’s average selling price is a hair north of $73,000. After five years, the Land Cruiser retains 74% of its value, with an estimated resale price of $44,791. The time-tested Land Cruiser is a prime choice for anyone looking for a high-end SUV that keeps its value. See our full depreciation breakdown. 

Browse Land Cruiser listings with local market data

Toyota RAV4

Toyota RAV4 depreciation and resale value

5-Year Residual Value: 73%

With a 5-year depreciation of just $10,127, the Toyota RAV4 is another excellent option for those looking for cars that hold their value. After five years, the average residual value will be around $27,520, making it one of the most practical choices for compact SUV buyers. See our full depreciation breakdown. 

Browse RAV4 listings with local market data

Honda HR-V

Honda HR-V depreciation and resale value

5-Year Residual Value: 73% 

The Honda HR-V, the #3 crossover in America in terms of sales, retains 73% of its value after five years. Considering an average selling price of $29,164 when new, the average resale value after 5 years comes out to $21,266. It’s a great option for those who want a smaller SUV that still holds its value well. See our full depreciation breakdown. 

Browse HR-V listings with local market data

Honda CR-V

Honda CR-V depreciation and resale value

5-Year Residual Value: 72% 

The Honda CR-V is a top performer in the small SUV segment, losing just 28% of its value after five years. That leaves CR-V owners with an estimated resale value of $22,354 when starting at an average selling price of $38,461. The Honda CR-V is not just reliable; it’s a smart financial choice for those who care about SUV resale value. See our full depreciation breakdown. 

Browse CR-V listings with local market data

Mazda MX-5 Miata

Mazda MX-5 Miata depreciation and resale value

5-Year Residual Value: 72% 

They say it’s shockingly fun to drive considering the attainable price point. There’s yet another reason to love the Miata: low depreciation. The Mazda MX-5 Miata retains 72% of its value after five years, with an expected resale price of $23,885. Brand new, the MX-5 Miata sells for $36,239 on average as of 2024. Known for its sporty handling and fun driving experience, the Miata is one of the top choices for sports car buyers who also want excellent resale value. See our full depreciation breakdown. 

Browse MX-5 Miata listings with local market data

Toyota Tacoma

Toyota Tacoma depreciation and resale value

5-Year Residual Value: 72% 

The Toyota Tacoma is arguably the best pickup truck on the road for holding its value. After five years, it retains 72% of its value on average. That means after a new selling price averaging close to $47,000, buyers can expect a resale price of around $34,000 after five years. Its combination of reliability, durability, and value makes it a standout among mid-size trucks. See our full depreciation breakdown. 

Browse Tacoma listings with local market data

Toyota Corolla

Toyota Corolla depreciation and resale value

5-Year Residual Value: 72% 

The Toyota Corolla proves that compact sedans can retain their value exceptionally well. With a 5-year depreciation of just 28%, a new Corolla purchased today is expected to retain 72% of its value. Its resale value, low cost of ownership and excellent fuel efficiency help the Corolla sedan survive the modern era’s shift to SUVs and crossovers. See our full depreciation breakdown. 

Browse Corolla listings with local market data

Subaru Impreza

Subaru depreciation and resale value

5-Year Residual Value: 72% 

No longer available as a sedan, the Impreza is officially a hatchback for 2024 and 2025. The Subaru Impreza holds onto 72% of its value after five years, with an expected resale price around $19,882. Subaru’s reputation for reliability and standard all-wheel drive make the Impreza a smart choice for those looking for value retention in a sedan that can handle every season. See our full depreciation breakdown. 

Browse Impreza listings with local market data

Don’t Let Depreciation Sneak Up On You

When it comes to finding cars that hold their value, these cars, trucks, and SUVs are at the top of the list. Time and time again, Toyota and Honda continue to dominate. For 2024 and 2025, other brands like Subaru and Mazda also offer strong contenders for those who shop with resale value in mind.

Need help finding the perfect car with great resale value? Let CarEdge Concierge do the negotiating for you. We’ll help you find the best deals, negotiate the price, and even deliver your new car to your door. Learn more about CarEdge’s car buying service.

5 SUVs with the Worst Depreciation: Know What to Expect

5 SUVs with the Worst Depreciation: Know What to Expect

When buying an SUV, one thing you’ll want to keep in mind is depreciation. Some SUVs lose value faster than others, which can lead to a lower resale value when you’re ready to trade in or sell. With the consumer in mind, we’re highlighting five family-sized SUVs with the worst depreciation. Although depreciation may not be a dealbreaker, knowing what to expect before making your purchase is always smart. All data is based on the latest 2024 depreciation calculations from CarEdge. Not seeing the model your interest in? See all of our SUV depreciation data here. 

Nissan Armada: 52% Value Loss Over 5 Years

SUV depreciation: Nissan Armada

5-Year Residual Value: 48%

The Nissan Armada is a full-size SUV with plenty of space and power, but its value drops significantly after just five years. With a 52% depreciation rate, the Armada will have a resale value of around $32,604 after half a decade. For buyers, this could be something to consider, especially if you plan to resell or trade-in the vehicle later.

Nissan Armada depreciation and resale value

These depreciation numbers assume the vehicle is in good condition and has been driven an average of 12,000 miles per year. The average selling price for a new Armada is around $68,438.

See our full depreciation analysis for the Nissan Armada and other models. 

GMC Yukon XL: 52% Value Loss Over 5 Years

SUV depreciation: GMC Yukon

5-Year Residual Value: 48%

The GMC Yukon XL is known for its room for the family, but it also has one of the highest SUV depreciation rates. After five years, the Yukon XL will lose around 52% of its value, with a resale price of approximately $42,083. This assumes the average selling price of $87,399, so the depreciation adds up to tens of thousands of dollars rather quickly.

GMC Yukon depreciation and resale value

See our full depreciation analysis for the GMC Yukon and other models. 

Buick Enclave: 51% Value Loss Over 5 Years

5-Year Residual Value: 49%

The Buick Enclave combines comfort and attainable luxury in a mid-size SUV package, but it comes with a significant depreciation cost. Today, the average selling price of a new Buick Enclave is $54,186. After five years, the Enclave will depreciate by about 51%, leaving it with a resale value of just $26,416. This might make you think twice, especially if selling your Enclave is a possibility in the next five years.

Buick Enclave depreciation and resale value

See our full depreciation analysis for the Buick Enclave and other models. 

Nissan Pathfinder: 49% Value Loss Over 5 Years

Nissan Pathfinder depreciation

5-Year Residual Value: 51%

The Nissan Pathfinder is a legendary mid-size SUV, but it too suffers from a significant depreciation rate. After five years, expect a 49% loss in value, leaving you with a resale price of $23,921. The Pathfinder’s strengths remain, but the depreciation hit is worth keeping in mind.

Nissan Pathfinder depreciation and resale value

See our full depreciation analysis for the Nissan Pathfinder and other models. 

Ford Expedition: 49% Value Loss Over 5 Years

SUV depreciation: Ford Expedition depreciation

5-Year Residual Value: 51%

The Ford Expedition is one of the top three-row SUVs on sale, but it doesn’t hold onto its value as well as some might hope. After five years, the Expedition loses around 49% of its original value. While it’s packed with features, room for eight, and carries a solid reputation, the depreciation hit will cost buyers over $30,000 in resale value after just five years.

Ford Expedition depreciation and resale value

See our full depreciation analysis for the Ford Expedition and other models. 

Conclusion

When shopping for an SUV, depreciation is a key factor that can greatly affect your long-term cost of ownership. The SUVs listed above have some of the worst depreciation rates in the market, meaning they lose significant value over time. If there’s even a small possibility that you could be selling in the next five years, depreciation should be a top factor in your decision making. 

Want expert help to navigate your next SUV purchase? Let CarEdge Concierge do it for you. Whether you’re buying new or used, our team will negotiate the best deal for you and ensure you’re getting the most value for your money. Learn more about CarEdge’s car buying service.

See our full depreciation analysis for all popular SUVs.

5 Trucks with the Worst Depreciation… Buyers Beware!

5 Trucks with the Worst Depreciation… Buyers Beware!

Buying a truck is a costly endeavor, but not all trucks hold onto their value the same way. Some depreciate faster than others, leaving truck owners with less resale value down the road. In this deep dive, we’ll take a look at five trucks that don’t fare well when it comes to depreciation, so you know what to watch out for.

CarEdge’s depreciation rankings were updated with the latest data in 2024, giving you insights on which models are most likely to drop in value in 2025 and beyond. When we talk about “5-year residual values,” we’re referring to the percentage of a vehicle’s original value that it retains after five years. The higher the percentage, the better it holds its value—but for these trucks, the numbers aren’t looking too good.

Ford F-150: 49% 5-Year Residual Value 

Ford F-150 depreciation

The Ford F-150 might be a top-selling truck, but when it comes to value retention, it’s the worst. After five years, the F-150 will have lost around 51% of its original value, leaving you with a resale price of about $30,245. While it does well in the first few years, it starts to lag behind rivals like the Chevy Silverado as time goes on.

Should you avoid this truck? Not necessarily, but be aware of how fast it loses value. If you’re deciding between the F-150 and another truck, it might be worth considering factors other than just resale value, like features, towing capacity, or reliability. For instance, both the Chevy Silverado 1500 and Ram 1500 pickups maintain their value better than the F-150.

The chart above shows the expected depreciation for the next 10 years. These results are for vehicles in good condition, averaging 12,000 miles per year. It also assumes a selling price of $61,927 when new. This is the average selling price of a new F-150 today.” See our full depreciation analysis for the Ford F-150.

Calculate expected depreciation for your F-150 using this free calculator.

GMC Sierra 2500 HD: 55% 5-Year Residual Value

Chevrolet Silverado 2500 depreciation

The GMC Sierra 2500 HD doesn’t depreciate quite as quickly as the F-150, but it still loses around 45% of its value over five years. If you buy one new at the current average selling price of $87,897, expect it to be worth around $48,247 after five years.

Heavy-duty trucks like the Sierra 2500 often fare better in the long run, thanks to their durability and strong market demand. But even with that in mind, a nearly 50% drop in value is something to keep in mind if you’re looking at this model.

The chart above shows the expected depreciation for the next 10 years. These results are for vehicles in good condition, averaging 12,000 miles per year. It also assumes a selling price of $87,897 when new. See our full depreciation analysis for the Sierra 2500.

Calculate expected depreciation for your Sierra 2500 using this free calculator.

Ford F-250 Super Duty: 55% 5-Year Residual Value

Ford F-250 depreciation

Similar to the Sierra 2500, the Ford F-250 Super Duty retains just over half its value after five years. Starting at an average selling price of $72,489, it’s likely to be worth about $39,833 after that period. That’s a depreciation of $32,656, which isn’t insignificant for a heavy-duty truck.

If you’re set on a Ford Super Duty for its power and towing capacity, this might be acceptable to you. Just remember, the resale value won’t be the strongest selling point. See our full depreciation analysis for the F-250 Super Duty.

Calculate expected depreciation for your F-250 using this free calculator.

Nissan Titan: 58% 5-Year Residual Value

Nissan Titan depreciation

The Nissan Titan depreciates a bit more slowly than others on this list, but it’s still going to lose about 52% of its value in five years. From a starting price of $58,711, you’ll be looking at a resale value of around $28,463 after half a decade.

Nissan’s full-size truck may not be as popular as the F-150 or Silverado, but if you’re a fan of what it offers, be prepared for its resale value to dip more than average.

The chart above shows the expected depreciation for the next 10 years. These results are for vehicles in good condition, averaging 12,000 miles per year. See our full depreciation analysis for the Titan.

Calculate expected depreciation for your truck using this free calculator.

Chevrolet Silverado 2500 HD: 59% 5-Year Residual Value

Chevrolet Silverado 2500 depreciation

The Chevy Silverado 2500 HD edges out the Titan with a 5-year residual value of 59%, meaning it loses 41% of its value over that time. If you purchase one for $66,710, expect it to be worth about $39,139 after five years.

The chart above shows the expected depreciation for the next 10 years. These results are for vehicles in good condition, averaging 12,000 miles per year. See our full depreciation analysis for the Silverado 2500.

Calculate expected depreciation for your truck using this free calculator.

Take Truck Depreciation Into Consideration

It’s important to remember that these are the trucks with the worst depreciation. Several popular models fare better, including the Chevrolet Silverado 1500, GMC Sierra 1500, and trucks from Ram and Toyota. Browse our complete depreciation rankings for free.

In the market for a new or used truck? Let us do the negotiating for you. CarEdge Concierge is the best-rating car buying service in America. Learn more about how we can deliver your next truck to your door, all while saving you thousands of dollars. 

How to Sell a Car with a Loan: Your Step-By-Step Guide

For many, there will eventually come a time when you need to part ways with a beloved car – even when you still owe money on it. Selling a car with an outstanding loan can seem daunting due to the added complexity of dealing with lenders. However, with a proper understanding of the process and careful planning, you can navigate the situation with ease. Here at CarEdge, we’re diving into how you can efficiently and effectively sell your car, even if the loan isn’t fully paid off yet.

Step One: Understanding Your Loan Details

When you’re considering selling a car that you still owe money on, the first crucial step is to fully understand the details of your loan. This knowledge is not only essential for setting the right sale price but also for ensuring that the transaction is handled legally and smoothly.

First thing’s first: understand your loan. That means digging up your login credentials to get into your online account with the lender. You may even need to give them a call, or hop on the live chat.

Here’s what to figure out before selling your car with a loan balance:

  • Check Your Loan Balance: Log in to your account, or contact your lender to request the current balance and the official payoff amount of your loan. The payoff amount may be higher than the balance due to the inclusion of any prepayment penalties or accrued interest.
  • Understand the Payoff process: Ask your lender about the specific steps required to pay off the loan. You need to know how long it takes for them to process payments and release the lien. This timing is critical, especially if you need to coordinate with a buyer.
  • Lienholder Details: While your lender holds a lien on your vehicle, making them a key stakeholder, you don’t need their explicit permission to sell the car. However, you do need to pay off the loan. When you send the payoff check to your lender, include a signed payoff authorization form. This form authorizes the bank to send the lien release or the physical title directly to the new owner. By doing this, the buyer is protected, knowing that the necessary documents to prove ownership will be sent to them by the bank.
  • Obtain a 10-Day Payoff Quote: Most lenders will provide a quote that is valid for 10 days, which includes the total amount required to pay off your loan in full as of that date, including any additional fees or accumulated interest. This quote will be vital when you finalize the sale and need to settle the loan balance.

Step Two: Valuing Your Car

Next, determine how much your car is worth. Use trusted resources like Edmunds or Kelly Blue Book, and use CarEdge’s valuation tool to see how much online buyers will pay. 

If you decide to go the private seller route, it’s important to price your car thoughtfully. Remember, you’re trying to sell the car quickly while also covering your remaining loan balance. Setting the right price can help you attract buyers quickly while ensuring you don’t fall short financially.

Step Three: Finding a Buyer

You have two main avenues for selling your car: a private sale or a dealership trade-in. A private sale typically yields a higher return but requires more effort on your part in terms of marketing and negotiation. Platforms like Facebook Marketplace, Cars.com, and AutoTrader are great for reaching potential buyers. On the other hand, trading in your car at a dealership is less hassle but is highly unlikely to offer as much for your car, especially with an outstanding loan. 

With a dealership trade-in, it’s common to be offered 20-30% less than your car is worth in a private sale. If you could really use that additional money, going through the longer, more tedious process of selling privately may be worth it. 

👉 Learn more about your options for selling a car

Step Four: Handling the Financials

how to sell a car with a loan

The financial aspect of selling a car with an outstanding loan can be tricky. But don’t give up now! If you’re eager to sell, it’s worth the hassle. Here’s how to handle it effectively:

  • Escrow Services: Using an escrow service for a private sale is strongly recommended as it adds a layer of security for both parties. The escrow service will hold the buyer’s payment until the loan is paid off and the lien is released, ensuring that the buyer doesn’t hand over money without securing the title, and you don’t transfer the title without clearing the loan.
  • Addressing Shortfalls: All payoff should be made with a cashiers check to further expedite the process. If the selling price doesn’t cover the loan payoff amount, you will need to provide the additional funds to clear the loan. Consider your options for covering this shortfall, such as a personal loan or a line of credit.
  • Payment to Lender: If you go this route, be sure to confirm that the buyer is comfortable with it before sealing the deal. It’s possible to coordinate with the buyer on making the payment directly to the lender. However, with a properly filled out payoff authorization stipulating that the documents go to the buyer, this would not be necessary.
  • Handling Overpayments: If the car sells for more than the payoff quote, plan how the surplus will be handled. Confirm with your escrow service (or with the buyer if they will pay your lender directly) to return the excess amount to you after the loan settlement.
  • Documentation: Keep meticulous records of all communications and transactions related to the loan payoff and car sale. Documentation should include the final payoff receipt from your lender and any agreements made with the buyer.

Step Five: Transfer of Ownership

bill of sale for car with a loan

Transferring ownership involves a few small hurdles, but it’s nothing you can’t do! You must inform the buyer about the lien and ensure that the loan is fully paid before transferring the title. Even with a lien, you are legally required to provide the buyer with a bill of sale, documenting the transfer of ownership to the buyer. Alongside this, include a payoff authorization when you send the loan payoff to your lender. This authorizes them to release the lien or send the physical title directly to the new owner. Once you receive a lien release from your lender, you can complete the title transfer to the new owner.

Each state has different laws, so it’s important to check your local requirements. Check with your state DMV. The information should be easily found on their website.

If you want to avoid these hurdles, consider paying off the loan balance and securing the lien release before you sell the car. This approach eliminates many potential complications that could delay the sale.

Plan Ahead to Avoid Headaches (You’ve Got This!)

Selling a car with an outstanding loan requires careful attention to financial details and diligent record-keeping. With the right approach, you can sell your loan and transfer ownership without a hitch. Remember, knowledge is power in any transaction. Understanding how to handle this process can save you from potential financial pitfalls. For more insights and resources on managing car sales and ownership, keep it tuned to CarEdge.

👉 Want to become a car market pro? How about that and more for FREE?

Sign up for Deal School today, our free course for anyone interested in buying, selling, or simply owning a car the smart way.

Deal school is now free