How to Sell Your Financed Car

Selling a car that is still under finance, often referred to as “Salg af bil” in Danish, can be a more intricate process compared to selling a car you own outright. While it is entirely possible, there are several legal and financial considerations to navigate. This article will guide you through the key steps and considerations in selling a financed car.

Understand Your Loan Agreement

Check for Early Payoff Penalties

Review your loan agreement to understand if there are any penalties or restrictions related to paying off the loan early.

Determine Payoff Amount

Contact your lender to get the exact payoff amount, which may differ from the remaining balance shown in your statements.

Prepare Your Car for Sale

Clean and Detail

As with any sale, making your car look its best can improve its appeal to potential buyers.

Gather Maintenance Records

Showing that the car has been well-maintained can reassure buyers, particularly when finance is involved.

Find a Buyer

Private Sale Vs. Dealer Trade-In

While selling privately may yield a higher price, selling to a dealer can be simpler, especially with a financed car. Determine which route aligns with your needs and comfort level.

Communicate the Financing Situation

Being upfront with potential buyers about the financing situation can build trust and prevent misunderstandings later in the process.

Coordinate with Your Lender

Understand the Process

Each lender may have different processes for handling the sale of a financed car. Communicating with them and understanding the required steps is essential.

Facilitate Title Transfer

Work with your lender to ensure the title transfer to the new owner is handled correctly. This may involve paying off the loan from the sale proceeds and waiting for the lender to release the title.

Handle Payment and Legalities

Choose a Secure Payment Method

Whether selling privately or to a dealer, ensure that payment is handled securely. This may involve a cashier’s check or direct payment to the lender.

Complete Necessary Paperwork

Beyond the usual sale documents, additional paperwork may be required due to the financing. Work closely with your lender to ensure everything is in order.


Selling a financed car, or “Salg af bil,” involves additional steps and coordination with your lender. By understanding your loan agreement, preparing your car effectively, choosing the right sale method, and working closely with your lender, you can navigate this process successfully. Transparency and careful planning are key, making what may seem a daunting task a manageable and profitable endeavor.


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