You can sell a car that still has a loan. First you need a written payoff figure from your lender, and a clear idea of how the lien will be released. This free letter asks for exactly what you need.
Payoff amount vs. your balance
Your statement balance is not what it takes to close the loan. The payoff amount includes interest that has built up since your last statement and sometimes fees. Ask for a 10-day payoff, which is good for the next 10 days, along with the per-day interest after that.
What the letter asks your lender for
- The payoff amount and the date it is good through
- Per-day interest and any early-payoff or release fees
- Where and how to send the payoff, including overnight and wire details
- How and when the lien will be released and the title (or electronic release) sent
- A person to call with questions
There is an optional box that lets the lender talk to the buyer or their representative. That can speed things up a lot.
How the sale works with a lien
- Get the payoff in writing.
- Compare it to what the car will sell for. If the car is worth more, you keep the difference. If it is worth less, you owe the gap.
- The buyer pays the lender directly, or you pay it off first. Either way the lender releases the lien.
- Once the lien is released, the title can be signed over and notarized. See our guide to the NC forms.
NCDMV has a form for removing a lien from a certificate of title (MVR-8); see its forms page. Many lenders also give payoff quotes by phone or through their website, so check there first.
If you owe more than the car is worth
That is called negative equity. You can pay the difference out of pocket, wait until the gap closes, or ask your lender about options. Read the full walkthrough in how to sell a car with a lien in North Carolina.
We deal with lenders every day
When you sell to SellCarNC, we contact your lender, arrange the payoff, and pay you any equity above it. Get a free offer to see where you stand.