If you refinance your car loan and then decide to sell the car, the process will be similar to selling a car that still has an outstanding loan balance. When you sell the car, you will need to pay off the remaining balance on the loan, which includes any interest and fees that have accrued since the last payment.
If you sell the car for more than the remaining balance on the loan, you will receive the difference as equity or profit. However, if you sell the car for less than the remaining balance on the loan, you will need to pay the difference out of pocket.
It’s important to note that some lenders may charge prepayment penalties if you pay off the loan early, which could impact your ability to sell the car. Be sure to carefully review your loan agreement and check with your lender to understand any potential penalties or fees before making a decision to refinance and sell your car.
