While it is illegal to sell a car without proof of ownership in most jurisdictions, there are legal ways to sell a car even if you don’t physically have (or can’t find) the title. States that have an Electronic Lien and Titling (ELT) Program like Maryland and Virginia will allow you to trade in a car without a title. This is because dealerships have access to the ELT database so they can confirm and transfer vehicle ownership seamlessly.

If you are conducting a private sale, you are required to have the vehicle’s title in hand or you may request a duplicate if your title was lost, stolen or damaged. Prior to selling, be sure to request your new or duplicate title several weeks before, as titles can take time to process. You must request the duplicate title from the state the vehicle is registered in. Once you receive the duplicate title, it will void the original.

When selling a vehicle that is financed or has a lien on it, you will need to reach out to the lender directly. They will be able to guide you through the process and ensure the sale and title transfer goes smoothly.

Why Does Your Vehicle Need a Title?

When you purchase a new or used car, you are provided legal proof of ownership (A.K.A. the title). If you are financing or leasing a car, you will likely never see the physical title unless you purchase the vehicle outright.

Titles can vary state by state but generally they list the following information about the vehicle:

• Vehicle’s make, model, color, body style and manufacturing year
• Vehicle identification number (VIN)
• Mileage at the time of the purchase
• License plate number
• Buyer’s name, address and issue date

What Are the Types of Car Titles?

Over a car’s lifetime, the title can change depending on the vehicle’s condition. Some of the most common types of titles are:

• Clear – The most desirable car title available and the only one that lenders will approve for a car loan.
• Salvage – This title is issued to a car that has seen a significant decrease in value due to a crash, theft or subsequent repairs.
• Rebuilt/reconstructed – The insurance company or body shop where the rebuild took place will issue this title after an inspection deems it safe to drive in public.
• Bonded – A vehicle with missing ownership documents will be given this title. It’s valid for three to five years and protects the new owner from potential ownership disputes.

Are Some Car Sales Exempt from Title Requirements?

Under certain conditions, you may not always need a vehicle’s title in order to sell it. Of course, it depends on the rules and regulations of your jurisdiction, but in special circumstances, you can sell a car without a title.

• A standardized bill of sale form may suffice for proof of ownership if the vehicle is more than 15 to 25 years old. In states that don’t require a standardized form, any bill of sale template should suffice.
• A transfer of ownership without a title may be a feasible option in some states that allow it. The buyer would then need to obtain a title for the vehicle. Additional documentation may be required.
• Selling to an out-of-state buyer without a title can be difficult if your state has deemed the car exempt. You or the buyer should confirm the other state’s rules and regulations. You may need to provide the buyer with a copy of the vehicle’s registration in your state.

Sell Your Car to Easterns Automotive

If you live in the DC, Maryland or Virginia areas, Easterns Automotive is here to help you sell your car. As one of the leading pre-owned dealerships around, we pride ourselves on creating a stress-free environment that takes the pressure off car sellers.

We understand that getting a car ready to sell can be an overwhelming task. At Easterns, you don’t have to worry about meeting potential buyers for test drives or handling the paperwork when finalizing the sale. We take care of the logistics for you so you can focus on finding your next vehicle.

Our diverse pre-owned inventory makes it easy to find the car you want. Learn more about our trade-in offers and how we can help by calling us at 877-867-0641.

It’s not uncommon to sell a car with an existing loan, especially if your situation changes two or three years into a five- or six-year loan. Car buyers in DC, Maryland and Virginia often look to sell their vehicles after a big life change such as getting married or starting a family. Simply put, if you have a loan on your car, it doesn’t mean you’re necessarily stuck with the vehicle until you pay it off.

You can sell a financed vehicle in one of four ways:

1. Pay off the loan in full
2. Sell the vehicle to a private buyer
3. Sell the vehicle to a dealership
4. Trade the vehicle in at a used car dealership

Some of those options require more work than others. For example, if you want to sell your vehicle to a private buyer, you’ll generally need to pay off the loan first. If you’re willing to sell or trade-in your vehicle to a dealer, they can deal with the logistical hassles of getting rid of the loan for you.

Whether you’re looking for a dealership trade-in or to sell the car outright, there are a few steps to consider before selling a financed vehicle.

Ask Your Lender for the Payoff Amount

Before you can sell any car with a loan, check with the lender you financed through and ask about the selling process. If you are still making payments on your loan, the lender has possession of the title and ownership of the vehicle until the loan is paid off and the title is transferred. These two things must take place before a financed vehicle can be sold.

The “payoff amount” is how much it will cost to own your car outright. This number will include the loan balance and interest along with any other financing fees or prepayment penalties. When you ask your lender for the payoff amount, they are required to provide you with an offer that’s valid for 10 days.

In addition to requesting the payoff amount, you can discuss next steps with your lender before deciding which route you’d like to take.

Do Your Research to Know Your Car’s Worth

Anytime you go to sell or trade-in a vehicle, make sure you know its value. The used car climate is constantly changing, so having an estimate of your car’s worth can be helpful when it’s time to sell. Keep in mind that your car’s value may change depending on how you plan to sell it (i.e., private or dealer).

If you don‘t have one already, you can get a quote on a number of vehicle valuation sites like Kelley Blue Book or Edmunds. Be sure to have your car’s make, model, mileage and VIN number ready for the most accurate quote.

At Easterns Automotive Group we pride ourselves on providing fast and accurate quotes to customers. You can get a solid purchase offer from our team in a matter of hours.

Determine Your Equity

Once you have the payoff amount and the value of your financed vehicle, you can then calculate your equity. You can do this by subtracting the payoff amount from the car’s estimated value. The remaining value is your current equity.

A quick way to tell if you have positive or negative equity is by your car’s value. If the value of your vehicle is higher than your loan payoff amount, then you have positive equity. If the payoff amount is higher than your car’s worth, then you are “upside down” on your loan — meaning you have negative equity.

You can still sell your vehicle even if you have negative equity. Car sellers have two options in this scenario: you can sell the vehicle and pay off the remainder of the loan out of pocket or you can roll the remainder of your loan (minus what you got for selling your car) into your next auto loan.

Easterns Automotive can help you get a great pre-owned vehicle, even if you have negative equity in your current car.

Selling Privately Versus Selling or Trading at a Dealership

When you’re ready to sell your financed vehicle, you will need to decide if you’d rather sell to a private buyer or to a dealership. This is when it’s important to consider things like the ease of transaction, final purchase price, your credit score, etc.

Selling to a private buyer used to be the preferred way to sell a used vehicle because sellers would typically get closer to their asking price. Now, because of recent shortages of new and used cars on the market, that may not always be the case. Dealerships are eager to buy used cars at great prices to maintain their inventory.

While it’s possible to still get more for your vehicle through a private buyer, there is a lot more work required on your end to complete the transaction. This is where a used car dealership can step in and help you obtain your payoff quote, make all final payments, and take care of the title for you. This is a great route if you’re looking to upgrade your current vehicle by trading it in for a newer model.

Find a Trusted Used Car Dealer in DC, Maryland and Virginia

Easterns Automotive is committed to helping our customers sell and finance their used car purchases quickly and efficiently. We are committed to guiding local car sellers through the selling process to ensure an easy, stress-free experience.

We also offer competitive pricing for used vehicle trade-ins and great financing options — no matter your credit history.

Browse our inventory of used vehicles in the Baltimore and DC areas or visit one of our dealership locations to find out how Easterns can help you sell your used car today.

Though it’s a little more complicated than selling or trading in a car you own outright, it is possible to trade in a vehicle that still has a loan. If you decide to trade in your current car before you pay it off, be prepared to do a little bit of work upfront so you are ready to move forward when you get to the dealership.

Depending on the amount left on your loan and the value of your car, you might owe money or get money back that can be applied to the new car. For this reason, it’s important to determine your vehicle’s trade-in value and your equity.

How Does Vehicle Equity Work for a Trade-In?

When you first bought your car, you likely took out a loan that you have been paying off every month since. As you make monthly payments you build your equity (the dollar amount you actually own).

Unfortunately, cars age and decrease in value each month, even as your equity increases with each subsequent loan payment. If you take care of your car, stay on top of your monthly auto loan payments and the demand for used cars is high, then your equity should still enter positive territory relatively quickly.

Once you are ready to trade in that vehicle, you’ll be faced with one of two scenarios:

• You have positive equity which means the car is worth more than what you still owe on the loan. The difference between your equity and the remainder of the loan can then be applied directly to your next vehicle purchase, lowering the amount of money you will need to borrow and helping you get a better interest rate.
• You have negative equity which means your auto loan is “underwater” or “upside-down.” This happens when your car is worth less than what you still owe. In order to trade in a vehicle with negative equity, you will have to pay off the difference.

For example: You bought a car for $20,000 and you financed $18,000 of it. The vehicle is valued at $12,000 when you decide to sell, but you still owe $13,000 on your auto loan. You’ll need to sell the vehicle for $12,000 and pay an additional $1,000 to clear the loan.

Conversely, if the same scenario occurs but you only owed $3,000 on your auto loan when you decided to sell, you would have $9,000 of equity you could put toward your next vehicle purchase. 

How Do You Pay the Difference if Your Auto Loan Goes Underwater?

If you’re considering a trade-in and your auto loan is upside-down, there are options to pay off negative equity.

1. Delay the trade-in until your car is paid off or once you are no longer underwater.
2. Pay the difference between what’s left on your loan and what the dealer offers for your trade-in. This is typically done with cash or by taking out another loan.
3. Roll over what you owe into your new car loan. Although this option is often the most convenient, it will result in you being immediately upside-down on your new auto loan. When you add the difference, you increase the new loan amount and typically pay more interest over time.

Do You Really Need to Know Your Trade-In Value?

When it comes to pricing your trade-in, take the time to do some research yourself. The team at Easterns Automotive would be happy to give you a fast estimate on your vehicle’s sale or trade-in value.

When it is time to trade in or sell your car at Easterns Automotive, we will conduct an appraisal and extend a firm offer.

What Will You Need to Trade in a Car with a Loan?

When you decide to trade-in a vehicle that still has a loan, the dealer will take over the loan and pay it off. To successfully trade in your old vehicle, you would negotiate the terms of your new auto loan and transfer your old vehicle’s title over to the dealer.

Ensure you have the following paperwork and materials ready when trading in a financed vehicle:

• Driver’s license
• Proof of insurance
• Vehicle registration
• All keys and key fobs for the vehicle
• The loan information (account number and payoff amount)
• Trade-in value based on your research

Get an Honest Trade-In Offer at Easterns Automotive

If you’ve tried other dealerships in Virginia, DC and Maryland and you weren’t happy with their trade-in offers, Easterns Automotive is here to help. We have a reputation for providing honest appraisals you can trust. It’s one of the reasons we have a 97 percent customer approval rating.

Once you accept our trade-in offer, we will deduct that amount from the new auto loan and take care of the rest. Stop by one of our locations or give us a call at 877-867-0641 to learn more.

The used car buying process can feel intimidating, especially when it comes to financing. It can be easier to focus on things like the color, make or model rather than the most irksome aspect of buying a car — how we plan to pay for it.

Perhaps you’ve saved up enough cash to purchase the vehicle outright, greatly simplifying the payment process. Most Easterns Automotive shoppers aren’t in that position. In many cases car buyers come to us with just enough to make a down payment.

Qualifying for an auto loan in the Washington D.C. and Baltimore areas will require you to approach a lender(s) or dealership with a multitude of paperwork and documentation. Lenders will need to confirm things like your identity, employment, credit score and income before they can offer you a car loan.

What Materials Do You Need to Apply for an Auto Loan?

1. Proof of identity (i.e., driver’s license or government-issued I.D.)
2. Proof of income (i.e., bank statements or pay stubs)
3. Credit and banking history
4. Proof of residence (i.e., utility bill or mortgage statement)
5. Vehicle information (i.e., purchase price and VIN number)

Where Do You Apply for an Auto Loan?

There are a number of lenders in DC, Maryland and Virginia who can offer you a loan to finance a used car purchase. When applying for auto loans, some car buyers will shop around for lenders until they find the best offer.

Common used car loan providers include:

• National banks
• Local community banks or credit unions
• Online lenders who specialize in auto loans
• Dealerships

What Is Pre-Qualification Versus Pre-Approval?

Pre-qualification is an estimate of the loan and rate you are likely to get based on the limited personal information and credit history you provide to a lender. A pre-qualification only requires a soft credit pull and is not an actual offer to fund your used car purchase.

Pre-approval is when a lender reviews your credit report to determine the estimated loan amount you’re approved to borrow and the interest rate you’ll be charged. A pre-approval does require a hard credit pull in order to provide a more accurate offer.

It’s important to note that neither will guarantee the approval of your auto loan, but both can be useful for planning and budgeting your used car purchase. If you want to impress a dealer or seller, getting pre-approved demonstrates your ability to obtain financing and shows you’re serious about buying the car.

What Affects the Approval of Your Auto Loan?

If you’re planning on financing your used car, you might be wondering what it takes to qualify for a car loan. If you haven’t had credit cards or loans in the past, you may have a harder time getting a loan.

Don’t lose hope — it’s not entirely impossible to get approved for a loan even if your credit isn’t great. In most cases, you should be able to find a lender willing to offer you a loan, but it may have a higher interest rate.

There are some steps you can take to increase your chances of being approved if your credit isn’t great:

• Save for a larger down payment
• Show proof of a steady job and income
• Ask a trusted friend or family member with good credit to be a co-signer/co-borrower

If you have been denied by a bank or lender in the past, don’t let that discourage you from buying a car. Easterns Automotive helps used car buyers in DC, Maryland and Virginia qualify for financing, no matter their credit history.

Apply For Used-Car Financing in DC, Maryland and Virginia

When you shop at Easterns Automotive, we handle the financing for you. You don’t have to worry about your credit history or getting third-party pre-approval when you apply for an auto loan through us.

At Easterns, we strive to get you the financing you need to purchase the car you love. Browse our extensive pre-owned inventory in Maryland, DC and Virginia or visit one of our dealership locations today.

Car shopping can be exciting yet nerve-wracking. Between financing and finding the perfect car to fit your lifestyle, there are a plethora of decisions you’ll be expected to make when buying a new or used vehicle.

A vehicle is a big purchase you’ll use on a daily basis and will ideally keep for several years (or more), which is why it’s so important to feel confident in your choice. While it never hurts to browse a vehicle inventory online or walk through a dealership lot to learn about your options, it’s important to determine the answers to some key questions before making a final purchase decision.

Does A Vehicle’s Practicality Matter?

Your next car is likely to serve a specific purpose, like getting you to work, hauling your kids to school and extracurricular activities or running errands. Think about what that purpose is and how you plan to use the vehicle when deciding what type of car is more practical.

• Will you be commuting to work or puttering around town?
• How much space will you need to transport family or equipment?
• Will you need to tow a boat or trailer? 
• Do you drive off-road?
• Are local streets narrow and traffic heavy?
• Will the vehicle need to fit in a garage or driveaway?
• Do you anticipate spending a lot of time in the car?

What Is Your Ideal Budget?

Most car buyers in DC, Maryland and Virginia will likely look at financing their vehicle purchases. Applying for an auto loan means you’ll be expected to make regular monthly payments on your new car. Make sure those monthly payments are within your budget.

We are all guilty of loving the latest and greatest cars on the market. Just remember that they aren’t the most wallet friendly. Unless you’re planning to put a sizeable down payment on your new car purchase, you may want to consider a used vehicle. Buying a used car can help minimize your monthly car payment and allow you to purchase a nicer model than you could otherwise afford buying new.

Oftentimes, if you buy from a dealership, you can expect the certified used car you purchase to be in near-showroom condition. Not only are you getting a quality vehicle that’s been serviced by the dealer but you’re getting it at a fraction of the price of a brand-new car.

Are You Planning to Trade-In Your Current Vehicle?

If you are ready to part with your car and upgrade to something more reliable, trading in your old vehicle is a way to take care of everything all at once. When you buy from a dealership, you can apply your trade-in toward the purchase of your new car. The more money you can put down, the better your interest rate and the less money you’ll need to take out on an auto loan.

The team at Easterns Automotive can provide you with a fast and fair trade-in quote if you decide to sell your current car or trade it in.

Would You Rather Buy or Lease the Vehicle?

When you purchase a vehicle to own, you are financing the entire cost of the car (minus any down payment or trade-in). When you lease a vehicle, you are paying for the duration you have the car and the mileage you put on it. 

If you’re not sure which route would work best for you, ask yourself these questions:

1. Do you drive a lot? Leased vehicles usually have a limit on how many miles you can drive within your lease term. If you go over that limit, you typically pay additional fees.
2. Do you anticipate any major life changes within the next couple of years? If you plan on growing your family, you may want to consider getting a vehicle that will work for you during those important life changes. There are often fees involved if you decide to terminate your lease early.
3. Do you take care of your car? When leasing a vehicle, you are expected to maintain it. If you return a leased car in bad shape, you may be charged additional fees.

Although most car shoppers typically associate leasing with new cars, some pre-owned dealerships, like Easterns Automotive, allow car shoppers to lease used vehicles. Contact our team to learn more about leasing a high-quality pre-owned car, truck or SUV.

Buy or Lease Your Next Vehicle at an Easterns Automotive Dealership in Washington D.C. or Baltimore

When you’re ready to buy or lease a pre-owned vehicle, Easterns is here to help. We make financing and leasing easy and offer fair trade-in values.

At Easterns Automotive, we strive to offer our customers a personalized car buying experience. Shop online, in person or both by browsing our inventory online or visiting one of our locations in the Washington D.C. and Baltimore areas.

Even if your credit is less than perfect, we are committed to finding you a great auto loan. Learn how we can help by calling us at 877-867-0641.