Can a Car on Installment Plan Be Sold?

[LaJosie]

Yes, a car on an installment plan can be sold. A car on an installment plan, also known as a financed car, means the owner only has the right to use the vehicle before the loan is fully paid off, but there is no regulation prohibiting the sale of such a car. According to relevant laws, a car on an installment plan cannot be transferred to a new owner, meaning the buyer only purchases the right to use the vehicle, and the debt is transferred along with it. When buying a car on an installment plan, the buyer should request the original vehicle registration certificate from the seller. Without this document, the transfer of ownership cannot be processed. Additionally, the buyer should communicate with the original owner to determine the remaining loan balance. The total price of the vehicle should be reduced by this amount, and the remaining loan must be paid to the bank to release the lien. Only then can the vehicle be legally purchased.