How do I sell a car privately if I still have a loan?

Selling a financed car privately takes an extra step because the lender holds the lien. A common approach is to meet the buyer at your lender's branch, or at their bank, so payment goes straight to pay off the loan and the lien is released. If you have negative equity, you'll need to cover the difference. Another option is to pay off the loan yourself first. Ask your lender how they handle private-sale payoffs and how they release the title.