Can a Car Bought on Loan Be Sold?
1 Answers
During the loan period, a car bought on loan cannot be sold; it must be sold after the loan is fully repaid. If the loan is not fully repaid: 1. The right to use the vehicle belongs to the purchaser; 2. The vehicle's title deed is pledged to the bank; 3. The vehicle's ownership belongs to the bank until the loan is fully repaid. If the loan is fully repaid: 1. Both the ownership and the right to use the vehicle belong to the purchaser; 2. The vehicle can be used for secured loans. More details about auto loans are as follows: 1. An auto loan refers to a loan issued by a lender to a borrower applying to purchase a car. Auto consumer loans are a new type of secured loan in RMB provided by banks to car buyers who purchase vehicles from their authorized dealers. 2. The auto consumer loan interest rate refers to the ratio of the loan amount issued by the bank to the consumer (i.e., the borrower) for purchasing a personal-use car (non-commercial family cars or 7-seater (inclusive) and below business vehicles) to the principal. The higher the interest rate, the greater the repayment amount for the consumer. 3. The term of an auto consumer loan is generally 1-3 years, with a maximum of 5 years. Among them, the loan term for used car loans must not exceed 3 years, and the loan term for dealer auto loans must not exceed 1 year.
