Yes … and no. You can technically transfer a car title with a loan, but it’s more challenging because a lien is involved. In most cases, the loan must be paid off to settle the lien before transferring ownership.
If the car you’re selling has an outstanding loan you can’t pay off, don’t panic. You may not have to put the brakes on the deal. Some lenders will allow a buyer to assume the outstanding loan balance. Speak with your lender to learn all your options.
But buyer beware! If the seller does not pay off the loan to settle the lien, the lien holder could have a legal claim to the vehicle.