Can a Car on Monthly Installments Be Transferred?
2 Answers
Monthly installment cars with outstanding loans cannot be transferred. Here are the relevant details: 1. Reason for Prohibition: When the vehicle loan is not fully repaid, the car is mortgaged to the bank, and vehicles with mortgage registration cannot be freely bought or sold. 2. Timing for Transaction: When selling a financed car, you can choose to complete the transaction after the loan is fully repaid or request the buyer to settle the outstanding amount in advance. Below is additional information regarding financed vehicles: 1. Loan Space: Financed vehicles need to apply for a second mortgage loan, and the vehicle must have room for additional financing. 2. Definition of Second Mortgage: It refers to re-mortgaging an already mortgaged asset, allowing the borrower to obtain additional loan funds.
Honestly, can a car under monthly payments be transferred? This is quite a common issue, and I've encountered it myself before. Generally, if a car is still under loan repayment, the actual owner is the bank or financing company because they hold the vehicle title. If you want to transfer the car to someone else, you must first pay off the remaining monthly payments to obtain a clear title; otherwise, the transfer won't go through. I know a friend who wanted to sell their car while it was still under loan. They contacted the bank directly, settled the remaining balance with a small fee of around $200, and after waiting a few days for the title to arrive, they could proceed with the transfer at the DMV. Don't forget, the loan contract has detailed terms, and violating them could affect your credit score. So my advice is, don't rush to find a buyer. First, check your loan agreement or call the hotline to ask, to avoid getting into trouble.
