{"id":766476,"date":"2019-03-06T21:02:58","date_gmt":"2019-03-07T02:02:58","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=766476"},"modified":"2025-04-21T17:01:54","modified_gmt":"2025-04-21T21:01:54","slug":"sell-financed-car","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/car-loans\/sell-used-car\/sell-financed-car","title":{"rendered":"How to sell a financed car"},"content":{"rendered":"

It\u2019s possible to sell a car that still has a loan on it, but there are few things to keep in mind. Generally, you have to pay off the loan before you transfer ownership to someone else. But there are a few ways to speed up that process.<\/p>

Can you sell a car with a loan on it?<\/h3>

Yes, you can sell a financed car. But as long as the loan exists, the lender has a lien on the car. <\/strong>This means if you default on your payments or fail to pay off your loan, the lender can repossess the car, even if you sold it to someone else. This can make it much more difficult to find a buyer since most people won\u2019t want a car that could be repossessed. Buyers will check first whether a used car has a loan on it before buying. That\u2019s why it\u2019s best to pay off your car loan before selling.<\/p>

How to sell a car with a loan on it<\/h3>

You have three main options if you want to know how to sell a financed car without paying it off in Canada. With all three options, you eventually must pay off your loan, but how you do so will be different.<\/p>

  1. Sell it to an online dealer or bidding site. <\/strong>Online dealers and bidding sites have sprung up in Canada in recent years to make selling a car as easy as possible, even if there\u2019s a loan on it. Learn more below.<\/a><\/li>
  2. Sell it to a private individual.<\/strong> You can either pay off the car loan first before selling it to a private buyer, or sell it first and use the profit to pay off your lender. Learn more below.<\/a><\/li>
  3. Sell it to an in-person dealership.<\/strong> If your car has a loan on it, local dealerships near you will still be open to buying it. Learn more below.<\/a><\/li><\/ol>

    Option 1: Sell your financed car online<\/h3>

    Selling your financed car online is the most hassle-free method out of all three options because it\u2019s quick and you won\u2019t have to leave your home. Online dealers (also known as \u201conline car retailers\u201d) and bidding sites are the two ways to sell a financed car online.<\/p>

    1. Online car retailers\/dealers<\/h4>

    Online dealers<\/a> allow you to sell a financed car completely online. To start, go to the online dealer\u2019s site to see your offer within minutes by providing the year, make and model of your car. A representative will go to your home to appraise your car and take it off your hands if you want to proceed with the sale. You will have to provide government-issued ID and the vehicle registration.<\/p>

    Any leftover balance in your car loan will be deducted from your offer, and the online dealer will take care of the payout.<\/p>

    Get an offer for your financed car from an online car retailer<\/h4>
    \n
    \n <\/div>\n
    \n
    \n
    <\/div>
    1 of 1 result<\/span><\/small><\/div><\/div><\/div>
    <\/div>
    \n Max. Vehicle Age\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Mileage Range\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Available Provinces\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Vehicle Payment\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th><\/tr><\/thead>
    \n 2000 or newer\n <\/div><\/td>
    \n Any\n <\/div><\/td>
    \n ON, NS, NB, PE and BC (no trade-in option in BC)\n <\/div><\/td>
    \n eTransfer funds in 1 business day\n <\/div><\/td>
    \n Sell or trade-in your car without the hassle. Upload basic information and get an instant offer. Get the vehicle picked up from your driveway. Available in Ontario and Nova Scotia only.\n <\/div><\/td>
    Go to site<\/a><\/use><\/svg>View details<\/span><\/a>
    Compare product selection<\/legend>
    <\/div>