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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Zarakava on April 05, 2017, 12:52:41 PM

Title: Pay off loan before selling car?
Post by: Zarakava on April 05, 2017, 12:52:41 PM
So I'm thinking of getting rid of my 2016 Jeep Wrangler. It was the dream car, but it's pretty fuel inefficient, and in general eats up a lot of money (I've had it for a bit over a year, and just recently discovered mustachianism)

I owe $17k left on the Jeep, and I think I could probably get 20-21k for it (though I need to do a ~$700 repair, but that's happening at some point anyway)
Should I pay this off before trying to sell it? I could probably get it paid off in about 3 months. Not quite sure how to approach this.
Title: Re: Pay off loan before selling car?
Post by: Proud Foot on April 05, 2017, 01:37:41 PM
Paying it off would allow you to get the lien removed from your title.  You may have some potential buyers who may balk at the idea of having to wait until the lien is released from the bank to receive the title.  If the loan is through a local bank it might be beneficial to ask them if the payoff and release of title can occur at the same time if you were to have the buyer meet you at the bank and pay it off right there.