I have been paying the car for about 3 years now, however I want to get rid of it. Is it possible to cancel the loan if I sell the car? I do have a title but I am not sure what to do, please advice.

George_1950

Welcome to AMHD, where you can read, write, and enjoy a lot. Just curious: You are presently making payments on a car? You have the title to the car? When did you purchase the car? How much did you borrow? When did you receive the title? How much do you owe? How much is the car worth?

SBU

If you pay it off you can. If you sell it and there is still a balance on the loan you still owe that money. Remember, you signed an agreement that you would pay it back, you can't just cancel an obligation because you don't want it anymore.

katalina_O

yes I have a title of the car. I have been paying for 3 years and under the contract i have 3 more to go. right now the car is worth about 17,000 or so. I was thinking about delling it and giving back the money to the bank. It just that im not sure if I can do this?

George_1950

You have to pay off the loan by either sale proceeds or coming up with the difference; the lien will be satisfied and you can convey a good, clear title to the purchaser.

Fr_Chuck

normally if you have the title, it will list the bank on it as the lien holder, this is normal in many US states. so the title is not clear and the ownership can not be transfered to the new owner unless it is signed off by the bank also.

So to sell the car you have to sell it for more than the loan or at least the same amount, and pay the loan off when you sell the car