[onewhippedpuppy]

Originally Posted by Rick V

I sold a car years ago that I owed money on, we did the transaction at the bank where the tile was being held, the note was paid off, I got the left over money and the buyer got the title

Good approach if the seller or bank holds the title. They pay off the loan, bank signs the lien release, and you are done. Much more challenging if the state in question has electronic titles. In that case we still do the transaction at the bank to insure that the car is actually paid off, then there's a little trust involved because the title will be sent to the seller. Though in some cases you can have them sign a power of attorney and mail the title directly to you.

This is a question where the answer will differ in every state. Best to call your local DMV for more info.