Will CarMax buy my car if I still owe money on it?

Asked by: Dr. Octavia Hoppe MD  |  Last update: August 9, 2025
Score: 4.4/5 (30 votes)

CarMax buys vehicles that are not paid off. To sell a car you still owe money on to the retailer, you must provide loan information so CarMax can pay off the lender. If you owe more than your offer, you will need to cover the difference.

Will CarMax buy a car that's not paid off?

Sure you can, but there's a lien on that car, and Carmax will know this lien, and they will tell you that they will be paying the lien holder the balance, and then the rest will go to you.

How do I sell a car if I still owe money on it?

You ask your bank for a payoff sheet. That's your remaining balance. Whoever buys the car has to write the bank a check for that amount and the remaining balance to you. Once they write the check to the bank you request for them to release the lien to the new owner.

Will CarMax buy my car if it won't start?

Yes, CarMax will buy cars that don't run, but the offer may be lower than for running vehicles. They typically assess the condition of the car, including any mechanical issues, and will provide a quote based on its overall value.

Can I trade in my car that's not paid off?

Yes you can. It does not affect the value. The dealership will add the remaining balance to the price quote. They will pay the loan off after you trade it in. Basically, you're paying that money one way or another.

How to Trade in a Car you Owe Money on or is NOT Paid Off (Former Dealer Explains)

43 related questions found

How can I get rid of a car that I still owe money on?

One way to get out of a car loan is to sell the vehicle privately. If you're not upside down on the loan, meaning the car is more valuable than what you currently owe on it, you can use the proceeds of the sale to pay off the current loan in full. Another term for an upside-down car loan is negative equity.

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).

Can I sell my car to CarMax if I owe?

To sell a car you still owe money on to the retailer, you must provide loan information so CarMax can pay off the lender. If you owe more than your offer, you will need to cover the difference. In some cases, the amount can be included in your financing or paid directly to CarMax.

Will CarMax buy my car in any condition?

We check every car's history to rule out any with flood damage, frame damage, outstanding liens, or salvage history. Any car that can't meet those condition standards gets sold at auction — not to you. Cars must also pass a 125+ point inspection and undergo a detailed reconditioning process to be sold at CarMax.

How much to sell a car with a bad engine?

The value of a vehicle with engine problems depends on numerous factors including the year, make, model, mileage, condition, location, and more. If your engine blows up on you and you want to sell it, we can pay anywhere from $500 to $10,000 or more depending on what kind of car you have.

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.

What happens if you sell a car that isn't paid off?

Vehicle Value – Payoff Amount = Vehicle Equity

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.

Will CarMax buy a car with a lien?

They will however purchase cars that have a lien on the title so long as the amount payed for the car will pay off the lien, such as in the instance of a title pawn loan, CarMax will pay off the title loan, give the seller the balance and then have the seller sign over the title.

What leases will CarMax not buy?

Please note that CarMax cannot purchase a vehicle currently leased through the following companies: Nissan Motor Acceptance, Infiniti Financial Services, Honda Finance, Southeast Toyota Financial, GM Financial, Ford Credit, Mazda Credit, World Omni, Volvo Financial, Lincoln Credit, Acura Financial, BMW Financial ...

How do I sell a car I still owe money on?

If you want the lender to release the car title to the buyer, you'll need to cover the full loan payoff amount. If you have positive equity, your lender will reimburse the difference. If you still owe money on the loan, you'll need to pay the difference.

Does CarMax give you money right away?

You will leave with payment in hand the same day you sell us your car.

Why would CarMax not buy my car?

CarMax will even buy cars that they don't expect to sell, such as badly damaged vehicles, that they will sell to auction. There are exceptions to the vehicles that CarMax will buy. The retailer will not buy a salvage vehicle. It will also not buy one with frame damage or flood damage.

What does CarMax check when selling a car?

We analyze your car's specific year, make, model, mileage, and features. We consider its condition, history, and use from information you provide, our own assessments, and internal and third-party history information. We especially look out for major issues, like frame or flood damage or odometer rollbacks.

Will Carvana buy a car that doesn't run?

Carvana will buy vehicles with minor technical problems or body damage, but the offer you receive will be adjusted to take repair expenses into account. The company, however, does not accept vehicles that are completely non-operational or wrecked.

Will CarMax buy a car that is financed?

You can sell your car to anyone. You need to pay off the loan in full. If you sell to CarMax, they will make a 7 day offer. Of less than you owe, you need to make up the full difference in cash or certified funds.

How to trade-in a car that is not paid off?

If your car's trade-in value is more than your current loan balance, then you're all set—you can just pay off the old loan and apply the difference toward the cost of your new vehicle. But if you owe more on your car than its trade-in value, then you'll have to make up the difference.

Can I sell my car to Carvana if I still owe on it?

Your car's registration: This shows that you've registered your vehicle with the state. Loan payoff information (if you still owe money on the car): You'll need to provide this so Carvana can pay off the loan when you sell the vehicle.

Can I sell my financed car back to the dealership?

Yes, most car dealerships will offer the trade-in value of your financed car toward the purchase of a new-to-you one. However, if the trade-in amount is less than what you owe on the loan, the remaining balance will be rolled into the new loan.

How do I get a car title if I still owe money?

It's possible to get a title on a car that is not paid off, but it's complicated. You'll have to contact your lender and ask them to release their lien on your car, which they are not obligated to do.

Can I buy a car that hasn't been paid off?

Can you buy a car with a lien on the title? It's possible to buy a car in a private sale that has a lien on it, meaning the owner hasn't paid off the car loan yet. The lienholder has the legal right to the vehicle and is often a financial institution, but could be an individual or third party.