I took out a loan using my car as collateral, I still have the title to the car. Can I sell the car.

Question

I took out a loan using my car as collateral, I still have the title to the car. Can I sell the car.

Answer

Sure, as long as you pay off the loan.

Answer

Once you pay off the loan, sure. If you do it now you not only will get sued, but because you will have committed a deliberate crime, you could go to jail.

Answer

You need to carefully review the documents creating the secured interest - there should be a note and security agreement which refers to the collateral, i.e. the car.

If you have the car title and sell the car, you had better keep paying the car loan. If you stop then the lender is going to be mighty peeved at you. It is a crime to conceal or dispose of secured property which is subject to a loan.

I am surprised the lender agreeing to this as collateral did not either list themselves as lienholder on the title or ask to hold the title as security.