Can a Car Purchased on Installment Be Sold?
2 Answers
A car purchased through installment payments can be sold. Below are the specific details regarding installment car purchases: 1. Advantages: Long payment terms and a wide range of options. Dealers are highly enthusiastic, as in the current market environment for car enthusiasts, installment payments are seen by many dealers as an effective means to capture market share. 2. Payment methods: Bank consumer loans, auto manufacturer financial company loans, and financing leases. The market is mainly operated by the "Kaiyuan Auto" brand chain institutions. 3. Pros and Cons Analysis: Pros - Bank auto loans have high execution interest rates but relatively lower repayment pressure, and multiple banks offer auto loans. Cons - The maximum installment amount is often linked to the overdraft limit. For example, for most installment car purchases, the maximum amount is four times the overdraft limit. However, the installment limit is separate from the spending limit, meaning after purchasing a car on installment, the spending limit remains unaffected and can still be used normally.
I've dealt with this issue recently. Of course, you can sell a car bought on installment, but you need to follow the proper procedures. If the auto loan isn't fully paid off, the vehicle registration certificate is still mortgaged to the bank, and you can't transfer ownership yourself. You'll need to pay off the loan first, retrieve the vehicle title (the big green book), and then go to the DMV to remove the lien. In my case, I negotiated with the buyer to have them pay part of the car's price upfront so I could use that money to settle the loan, and we arranged to go to the bank together to complete the paperwork. However, this approach carries some risks - if the buyer backs out midway, you could be in trouble. I'd recommend either working with a reputable used car dealer who can provide bridge financing, or borrowing money yourself to pay off the loan first for more security. Whatever you do, don't fall for anyone claiming you can sell the car without removing the lien first - that's completely fraudulent.
