Guide

Can I sell my car if there is still a loan on it?

Short answer

Yes, but the loan has to be dealt with first. If you bought the car on an instalment plan, the finance company often has a retention of title, and the debt must then be settled before the car can change owner. Ask the lender for a settlement amount for a specific date and use the sale price to pay off the loan.

Last updated: 25 September 2026

Does the kind of loan I have matter?

Yes. An instalment plan with retention of title blocks the sale until the debt is settled, an unsecured loan does not, and a leased car is not yours to sell.

If you are unsure, ask your bank or finance company what kind of agreement you have.

Instalment plan with retention of title: the finance company has a right to the car until the debt is paid – settle the loan first
Unsecured loan or other loan not secured on the car: the car can be sold, but the loan remains and is repaid as agreed
Leasing: the leasing company owns the car – contact them about ending the agreement

What is a settlement amount?

The exact amount needed to pay off the loan on a given date, including interest and any fees. You get it from your bank or finance company.

Ask for the settlement amount before you start negotiating, so you know the lowest price that covers the debt.

How does it work in a private sale?

You need to settle the loan before or at the sale and be able to show the buyer that the car is free of debt.

One possible setup is for the buyer to pay the settlement amount directly to the finance company and the rest to you. Agree the setup with the finance company in advance and write it into the purchase agreement.

How does it work when selling to a dealer?

Dealers often settle the loan directly with the finance company and pay you the difference. Ask the dealer to confirm how they handle the loan before you sign.

What if the car is worth less than the loan?

Then you need to pay the difference yourself, agree a solution with the lender or wait until more of the loan is paid off.

Contact the lender early if you plan to sell. It is easier to find a solution before you have a buyer waiting.

Frequently asked questions

Can I sell the car before the loan is paid off?

Yes, if the debt is settled as part of the sale. With an instalment plan with retention of title, the finance company must be paid before the car can change owner.

How do I get a settlement amount?

Contact your bank or finance company and ask for the settlement amount as of the date you plan to sell.

How does the buyer know the car is free of debt?

Show a statement from the finance company that the loan is settled, or let the buyer pay the settlement amount directly to the finance company under a setup you agreed in advance.

Can I sell a leased car?

Not yourself, because the leasing company owns the car. Contact the leasing company about ending or transferring the agreement.

Do I have to tell the buyer about the loan?

Yes, if the loan affects who owns the car. Be open about it and describe in the purchase agreement how the debt will be settled.

This guide is general information, not legal or financial advice. Rules, fees and e-services can change – always check current details with the Swedish Transport Agency (Transportstyrelsen), the Swedish Consumer Agency (Konsumentverket) or your bank.

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