Its OK to be hesitant, but its perfectly fine to sell it privately while you are still making payments, there are just a few more steps in the process. The lien will need to be payed in full for the lien holder to release the title on the vehicle. So, the buyer's funds, plus any remainder if the selling price is less than what is owed, will need to clear at your lien holder. If the selling price is higher than what is owed, the lien is payed off with those funds, and the remainder goes to you. This usually adds an extra bit of time for processing/title transfers versus if you had the title in hand. Talk with your lien holder, they can probably walk you through the process as these types of sales are pretty common.
List the car for what you want for it, be up front with the buyer that you are still making payments and the process could take a little longer because of it. No need to disclose to the buyer how much you still owe on it though.
Congrats on the kid, and GLWS!
