If you’re living in Hawaii and considering selling your car, you might be wondering: Can I sell my vehicle if I still owe money on it? The answer is yes, but the process is slightly more complex compared to selling a car you fully own. With Hawaii’s county-specific vehicle registration and title requirements, it’s important to know the right steps before listing your car.
Understanding Your Loan Balance
- The first step is to contact your lender and request a payoff amount.
This is the total you need to pay to clear your loan, valid up to a certain date. Once you know this figure, you can determine whether you have:
- Positive equity:
Your car is worth more than what you owe. After the sale, the lender gets paid first, and you keep the remaining balance.
- Negative equity:
You owe more than your car’s value. In this case, you’ll need to pay the difference out of pocket or explore options to roll it into another loan.
Selling Through Carmark Hawaii
One of the easiest ways to sell a financed car in Hawaii is with Carmark Hawaii. We regularly handle loan payoffs, coordinate directly with your lender, and process the title transfer with the county motor vehicle office. The trade-off is that you might not get the highest price compared to selling privately, but you gain convenience and a smoother process.
Selling Privately in Hawaii
If you’d rather sell your car privately, you’ll need to work closely with your lender and the buyer:
- Meet at your lender’s office
The buyer can pay the lender directly, the loan is closed, and the lender provides a lien release.
- Use an escrow service
This adds a layer of protection for both parties. The buyer deposits funds with the escrow company, which pays the lender and ensures the lien is cleared before releasing the title.
While these steps may take a little extra effort, they provide transparency and security for everyone involved.
County Title & Transfer Requirements
In Hawaii, vehicle registration and title transfers are handled at the county level — Honolulu, Maui, Kauai, and Hawai‘i (Big Island). Generally, you’ll need:
- The Certificate of Title signed by the lienholder once the loan is paid.
- A Notice of Transfer filed within the county’s required timeline.
- Payment of a small transfer fee (for example, Honolulu charges $10 if done within 30 days).
Since each county may have slightly different requirements, it’s best to check with your local motor vehicle office to avoid delays.
Final Checklist Before Selling
- Request your payoff statement from the lender.
- Gather your title, registration, safety inspection, and loan documents.
- Be upfront with potential buyers about the outstanding loan.
- Decide whether to sell privately, use escrow, or choose Carmark Hawaii to save time and stay safe!
Selling a car in Hawaii with an outstanding loan is absolutely possible. The key is working closely with your lender and following your county’s title transfer rules. Whether you choose the convenience of a dealership or the potential higher return of a private sale, proper preparation will make the process smooth and stress-free.
For added peace of mind, you may also consider working with a professional car-buying agency in Hawaii.
Carmark Hawaii is a dedicated buying Center, with extensive experience in handling loan payoffs, coordinating with lenders, and managing county paperwork, making the process faster, safer, and hassle-free for car owners.