Selling a vehicle with an active loan is one of the most common transactions we handle. The process is well-established and, once you understand it, not particularly complicated. Here is how it works in Minnesota.
Step 1: Understand your payoff amount
Your payoff amount is the total you owe to fully retire the loan as of a specific date. It is different from your current balance because it may include accrued interest and any prepayment terms. You can get your payoff quote by calling your lender or logging into your loan account. Most lenders provide a 10-day payoff quote, which gives the transaction time to close before the number changes.
You do not need to do this before getting an offer. Use the offer tool on this page first to understand your vehicle's market value, then compare that to your estimated payoff to see whether you have positive or negative equity.
Step 2: Understand your equity position
Positive equity: Your vehicle is worth more than your payoff. You will receive a check for the difference at closing after the lender is paid off.
Negative equity: Your payoff is higher than the vehicle's value. To complete the sale, you need to cover the difference out of pocket — or, if you are purchasing another vehicle, roll it into the new financing. We review this scenario clearly with you before you commit to anything.
Step 3: Bring your lender information when you come in
When you are ready to come in, bring your lender's name, contact number, and your account number. We contact your lender directly to request the payoff quote and handle the coordination. You do not need to arrange anything with the bank yourself.
Step 4: We handle the title release
In Minnesota, most lenders hold the title electronically or as a paper lien. Once we issue payment to your lender, they release the lien and the title transfers to Feldmann Acquisitions. This typically takes one to three business days for electronic titles, slightly longer for paper titles held out of state.
Step 5: You receive your equity
If your offer exceeds the payoff, we issue you a check at closing for the difference. Same-day finalization is available once the payoff quote is confirmed. For a trade-in toward a new Feldmann Imports vehicle, the equity applies directly toward the purchase price and the $500 trade bonus is added on top.
Common question: Do I need to pay off the loan before coming in? No. Bring your lender information and we handle the payoff as part of the transaction. Many sellers arrive without having contacted their bank at all.
Common questions
Yes. You do not need to pay off the loan first. We contact your lender, request the payoff amount, and issue payment directly. The title transfers to us after the lien is released.
That is standard for financed vehicles. When we issue payment to your lender, they release the lien and the title is transferred as part of that process. You do not need the physical title to initiate the sale.
Most lenders provide payoff quotes within one business day. Electronic title releases typically take one to three business days. We factor this timeline into the closing process.
If you have negative equity, you can pay the difference out of pocket to complete the sale, or roll it into new financing if you are purchasing another vehicle. We review the exact numbers with you before you commit to anything so you understand exactly what the transaction involves.
We work with all types of lenders including major banks, credit unions, manufacturer finance companies like Mercedes-Benz Financial Services and BMW Financial Services, and regional lenders. The process is the same regardless of who holds your loan.
Paying off a loan through a vehicle sale is generally a neutral to slightly positive event for your credit. The loan account closes as paid in full. Rolling negative equity into new financing creates a new loan, which has its own credit implications you should discuss with your lender.