Is the loan a personal loan or a car loan?
if its a personal loan just sell it and bite the bullet, if the finance is secured on the car you have to clear the loan as it belongs to the finance company until the loan is cleared.
thats my understanding of the system anyway
On another note don't get caught out like I did once,
I had a C32 AMG Mercedes that I was struggling to keep up with the servicing costs, it had 20k outstanding finance on it, I saw a GS 300 at the local garage and we did a deal, I got £21k for my Mercedes.
I called Mercedes Finance they told me to give the C32 to the garage and they would send the balance outstanding to them, the garage gave me the 1k balance, I organised the money for the GS job done.
Six days late the police called around to my house the car had been clocked at 110 mph in a 30 limit, I sorted that out, then 6 weeks later I got a letter from Mercedes to tell me I had missed a payment, I call them to tell them I had sold the car and they promptly told me it hadn't been paid for by the garage and I was liable even though they told me to do it, to cut a long story short it took the garage nearly 5 months to pay for the car even though they had sold it within 5 days, it wrecked my credit history and took me months to sort out.
the garage if anyones interested RIX'S MOTORS WARRINGTON God Bless em