Can you sell something that's not paid off?

Asked by: Keira Walker  |  Last update: February 17, 2026
Score: 4.6/5 (34 votes)

Negative equity means your vehicle's value isn't high enough to pay off your outstanding loan balance. If you wish to sell a financed vehicle with negative equity, you'll either need to pay off the remaining loan balance out of pocket or roll that amount into a new loan.

Can you sell something you still owe money on?

You must pay off your loan to transfer ownership. You owe the lender any difference between balance and sale price. It's not difficult to sell a car with a loan on it — but it adds extra steps and might take a little longer. When you have a loan, the lender is, in a sense, part owner of the vehicle.

Can you trade in something that isn't paid off?

A common question we encounter is "will a dealership buy my car if I still owe?" It is definitely possible to trade in even if you are still paying your auto loan for that vehicle. However, trading in a car you still owe on might be slightly more challenging and may end up being costly if you are not careful.

Can you get in trouble for selling a phone that's not paid off?

There's nothing stopping you from selling it, but you're still responsible for any amount owed on the device.

Can you sell a car that's not fully paid off?

It is perfectly possible to sell a financed car without having first fully paid it off. Most car shoppers finance their purchases, so dealers buy used vehicles with partially unpaid auto loans all the time. CarGurus explains how selling a car you still owe money on is easy and can be done in only a few steps.

Sell My Car To Get Rid Of The Payment?

19 related questions found

Is it smart to trade in a car that isn't paid off?

Often, it's best to pay down or pay off your auto loan before selling it or trading it in. The main concern is whether you have positive or negative equity on your loan. With negative equity, you should pay off your auto loan before you trade in your car.

Can I sell my car if I have unpaid tickets?

Yes. The tickets you have are made out to you, not your car. The car is not expected to pay the fines, you are.

How to sell financed phones?

If you are on a financing plan, you might owe a portion of the total cost of the phone. You will need to pay off that remaining balance to the carrier or financing company before transferring ownership to the buyer. Market value: Assess the market value of your phone.

Can I sell my iPhone if it's still under contract?

That's correct, you are able to. The phone itself is yours to do with as you wish, regardless of whether you're still in contract. The bill payments would still continue as normal.

What happens if you don't pay off a financed phone?

Mobile phone debt often goes to a debt collection agency. Do not ignore their letters. Offer to pay what you owe at a rate you can afford. These agents do not have any special powers.

Will a dealership buy my car if I still owe money?

Note: If you're selling a car with an active loan, you're still the one responsible for paying it off, so the remaining balance on the loan will likely be subtracted from the price the dealer offers you. So if you owe more than what the dealer offers, you'll need to pay the difference to the lienholder.

Can you transfer ownership of a car that is not paid off?

You're unable to transfer the title to the buyer until the loan is paid off. In a private transaction, you might want to complete the sale at the location of the current lienholder (such as the bank or credit union where you got your car loan).

How much negative equity is too much?

How Much Negative Equity Is Too Much on a Car? The maximum negative equity that can be transferred to your new car is around 125% . It means your loan value should not be more than 125% of your car's actual worth. If it is more than 125% then your next car's loan would not be approved.

Is it illegal to sell something you have a loan on?

If you have the title, you can sell it, putting your name as lienholder until the purchaser finishes paying you what's owed. At that time you would sign a release of lien and the purchaser could obtain a clear title from the state.

Can you sell an unpaid debt?

Most unsecured debts are regulated by the Consumer Credit Act (1974), which means they can be legally sold if you stop making payments as outlined in your original credit agreement.

Can you sell someone's stuff if they owe you money?

It is not legal to sell someone's property because you claim he/she owes you money – but you don't have any legitimate claim to that property.

Can I sell a phone that isn't paid off?

While it is legally possible to sell a financed phone, the financial obligations tied to the device do not automatically transfer to the new owner. Instead, the original buyer (you) remains responsible for completing the payments as per the terms of the financing agreement.

Is it illegal to buy and sell iPhones?

In the states, it is legal for you to resell something you own as the first sale doctrine applies. Still, you can't pass yourself off as an authorized reseller and the warranties typically won't transfer to your customers. You can't use the Apple logo or name in your marketing or advertising either.

Can I trade in my iPhone if it's not paid off?

You may decide to trade-in your Financed iPhone outside of the iPhone Upgrade Program for any reason (e.g., if the market value of your trade-in exceeds the outstanding balance on your Installment Loan).

Can you sell something you financed?

If you wish to sell a financed vehicle with negative equity, you'll either need to pay off the remaining loan balance out of pocket or roll that amount into a new loan. It's important to proceed with caution with either approach, especially when it comes to new financing.

Can you sell a phone thats on finance?

This means you don't actually own the phone until you've paid off the handset part of your contract, which means you can't sell it. However, you can sell it if you settle up that part of the agreement. In short: if you're still tied into a contract, your best bet is to check before you sell your phone.

Can you sell a phone that is locked?

You should note that carrier locked phones still work perfectly in a technical sense, and the only restriction is the network you make calls, send messages, and send/receive cellular data through. You can sell your carrier locked phone with no issue at all.

Can police see unpaid tickets?

If you don't pay the ticket by the due date, a judge could issue a bench warrant for your arrest. If a police officer pulls you over, they'll see the warrant and take you into custody.

Is it illegal to sell tickets?

In the U.S., the laws around ticket scalping differ state by state: California: Reselling tickets above face value without a resale license is illegal.

Can I sell my unpaid car?

Can you sell a car with a loan? You can sell a car with a loan but you'll need to give the full payoff amount to your lender before they'll release the car title. You can do this with your funds after you complete the sale, or you can refinance your car loan or apply for a personal loan.