Still Making Payments? Here’s How Selling Your Car Can Work

You’re still making payments, but you’re ready to move on from the car. That doesn’t automatically stop you from selling. To sell a financed car in Quebec, you need the lender’s current payout amount and a clear plan for settling it. Start there before getting attached to an offer.

Ask your lender what’s left to pay

Contact your lender for the amount needed to settle the loan, the date that figure applies to and its payment instructions. The balance in your banking app may not be the exact amount needed to close the loan on your sale date.

Tell the buyer about the financing at the start. What a buyer will pay and what you owe the lender are two separate numbers. Your monthly payment doesn’t tell you either one.

Work out the difference

For example, a $20,000 sale price against an $18,000 payout leaves $2,000 before any other agreed costs. A $20,000 price against a $23,000 payout leaves a $3,000 difference you still need to cover.

The second situation is negative equity: owing more than the car is worth. Selling doesn’t automatically erase the difference. Confirm a workable arrangement before committing to a handover, rather than assuming the buyer will absorb it.

Who pays the lender, and what’s left for you?

Ask for a written breakdown showing any payment to the lender and any remaining amount payable to you. Confirm how settlement and the release of any registered security interest will be documented. Follow your lender’s instructions until it confirms the account’s status.

A statement such as “we handle financing” isn’t enough on its own. You should understand the amounts, the sequence and what confirmation you’ll receive.

Leasing? Check the rules first

If you lease the vehicle, contact the leasing company about buyout and third-party purchase requirements. Don’t use a loan-payout calculation as proof that a lease purchase is permitted.

Car Buyers Montreal reviews financed cars case by case. Request an offer and have the lender’s details ready for follow-up. You can compare the offer with the payout before deciding whether the sale makes sense.

Read more about negative equity and vehicle liens from the Financial Consumer Agency of Canada.