Yes, you can sell your car even if you still have a loan outstanding. When you sell the vehicle, however, you'll need to pay off the loan. If you trade in your car at a dealership, the dealer will handle the process on your behalf. Otherwise, you'll need to do it on your own. If your car is worth less than the amount you owe, you may be able to roll the deficiency balance into a new loan through a dealer. But if you sell your car to a private party, you'll typically need to come up with the cash on your own. You can trade in leased vehicles, as well. If the vehicle is worth more than the buyout price, you can use that difference as equity when trading in the vehicle at dealerships.