When you get a car loan, the lender places a lien on the title to your car. You have to clear the lien by paying off the loan, refinancing, etc, when you sell the car. This is because the car is collateral for the loan.
If you work with a dealer, they can roll the loan over into a new loan (secured by the new vehicle). If you do a private sale, you will have to figure out some way to pay off the loan in full to clear the lien off the title or your buyer, when they go to claim title to the car (which they have to do in order to register the car and get license plates), will have some problems, and will be back to see you.
In short, it can be done. But there are those pesky details.
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selling a car you owe $s on
Date: 2005-11-24 05:55 pm (UTC)If you work with a dealer, they can roll the loan over into a new loan (secured by the new vehicle). If you do a private sale, you will have to figure out some way to pay off the loan in full to clear the lien off the title or your buyer, when they go to claim title to the car (which they have to do in order to register the car and get license plates), will have some problems, and will be back to see you.
In short, it can be done. But there are those pesky details.