Wir können das Auto verkaufen.

English Translation

We can dispose of the car.

I think the translation is not entirely correct.
When translating, my first thought was that disposal should lead to getting rid of by any means, including throwing away or lending it to your friends or family members.
“verkaufen” means in a stricter sense “sell”, not just “get rid of”.

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I agree.
Based on the English sentence, I would probably translate it to German to “Wir können das Auto loswerden.”