1. Determine the loan balance: Contact the lender that holds the personal loan and inquire about the outstanding loan balance, any associated fees or penalties for early payoff.
2. Research the car's value: Gather information about the current market value of your vehicle through online resources such as Kelley Blue Book or Edmunds. This will help you set a realistic selling prices
3. Get a vehicle inspection: Arrange for a comprehensive inspection of your vehicles to identify any issues that may affect its value. Ensure the car is in good condition, as this can impact the selling prices
4. Gather necessary documents: Collect your car's title, registration, maintenance records, and loan agreement. These documents will be required by the buyer.
5. Prepare the car for sale: Clean the car thoroughly, make necessary repairs, and ensure that it is presentable.
6. Choose a selling method: You can choose to sell your car through various channels such as online classifieds websites (e.g., Craigslist or Facebook Marketplace), car dealerships individual buyers. Consider the pros and cons of each method to decide the best option for you
7. Find a buyer: Once you have chosen a sale method, start advertising your car. For individual sales. arrange to meet potential buyers for test drives and negotiations.
8. Receive the payment: Agree on a selling price with the buyer and ensure that you receive the full payment before transferring the ownership of the vehicle.
9. Pay off the loan: Use the proceeds from the sale to pay off the personal loan. Make necessary arrangements with the lender to settle the loan and obtain the lien release.
10. Transfer the title and register the sale: Once the loan is paid off and you received the lien release, sign and transfer the vehicle's title to the buyer's name. Complete any necessary paperwork required by your local jurisdiction to register the sale of the vehicle.
11. Keep records: Maintain copies of all documents related to the sale of the vehicle for future reference.
12. Notify your insurance company: Inform your insurance company about the sale of the vehicle to cancel your insurance policy and receive any relevant refunds.
Note: If the car's selling price is not sufficient to cover the loan balanced fully you might need to negotiate a "short sale" with the lender, where they agree to accept a lower payoff amount in exchange for releasing the lien on the car.
