Start by asking for the payoff amount

Call the finance company and ask for the payoff amount, which is the amount needed to close the whole loan. This is not the same as the remaining installments times the number of months, because there is a discount on interest that is not yet due.

Only once you know the payoff amount will you know how much of the sale price is really yours. If the market price is lower than the payoff amount, you have to make up the difference yourself. That hurts, but you need to know it on day one, not when the buyer is ready to transfer.

Tell buyers in the listing

Buyers of owner-sold cars are not afraid of financed cars. They are afraid of being kept in the dark. Say plainly in your listing that the car is still under finance and roughly how much the payoff amount is.

People who cannot accept that will not call in the first place, which is good for you, because you will not waste time on viewings. The people who do call have already accepted it, and the deal moves much faster.

Two methods people really use

• You pay it off yourself first, then sell. This is the safest for both sides, because you sell once the registration book is in your name. But you need a lump sum to pay it off first.
• The buyer pays the finance company directly to close the loan, then pays you the difference. This is very common, but it must be done at the finance company's office or with clear documents confirming the loan has been closed. Do not settle it with a verbal agreement.

With either method, always talk to your finance company first, because each company has different steps and documents, and the time it takes to release the registration book after payoff varies.