A lot of people are looking to sell their cars these days for reasons ranging from economics to just a desire to get something new. The question many have is how do you go about selling it if you don't have the title. Why would you not have title? Well, this is common if you used a loan to finance the purchase. Your lender will either be named on the title or hold it, both of which prevent you from selling it.

He who drives a car does not necessarily own it. No, the ownership is reflected in much the same way as ownership of a home is – through title. A home has a deed, but a car has a certificate of title that is recorded with the appropriate department of motors in your area. To sell a car, you must hand over title and execute a transfer of title to the new owner. In turn, the new owner provides you with compensation which is usually always money.

This process is pretty simple and straight forward. It gets a little more complicated when you have an outstanding loan on the vehicle in question. No lender is going to give you a car loan without securing it. Securing simply means placing a legal attachment on some valuable asset that you have. To make things simple, this is just the car that you are buying. If you default on the loan, the repo man will come and legally swipe your car. This is also why you are required to list the lender on your insurance policy, to wit, the insurance will first pay off the loan if you total the car.

So, how do you sell a car if you don't have the title? It is a common question and the specific answer depends on your lender. Generally, you need to notify the lender that you intend to sell. It will then provide you with the location of an office near you where title can be dealt with. Once you find a buyer, both would go to the office. The buyer will make the payment. You and the lender will then sign title over to him or her. The lender will then give you the difference between the loan balance and the sales price.

It may sound a bit complicated, but it isn't. This process is carried out thousands of time every day, so don't get stressed over it. Just contact your lender and find out what is required of you.

Thomas Ajava writes for <a rel="nofollow" href="http://www.carloanfinancecompanies.com">CarLoanFinanceCompanies.com</a> - where you can get answers to questions like <a rel="nofollow" href="http://www.carloanfinancecompanies.com/auto-loan/can-you-sell-your-car-with-an-outstanding-loan">can you sell your car with an outstanding loan</a>?