Can a Car Purchased with Installment Loans Be Sold?
2 Answers
Cars purchased with installment loans cannot be sold before the loan is fully repaid. The ownership of such cars does not belong to the buyer during the loan period; instead, it typically belongs to the lending institution, and the car is usually registered as collateral. Below are some risks associated with purchasing a car with a loan: 1. Price hikes after completing procedures: After all formalities are completed and you are ready to take delivery of the car, the dealer may demand an additional cash payment on top of the agreed price before handing over the vehicle. 2. Some dealers use 'middleman' tactics to fraudulently collect extra fees: Before buying a car, always choose and understand reputable car sales and auto finance companies for your auto loan. Conduct on-site inspections and research the credibility and strength of the financing and sales companies through multiple channels. This is because some individuals in the market, lacking both credit qualifications and car inventory, act as 'middlemen' to profit by bringing consumers to a qualified dealer to handle installment payment procedures. The dealer then takes advantage of the complexity of loan procedures and calculations to overcharge the consumer, making illicit profits. This way, the 'middleman' earns a commission at the consumer's expense. 3. Some dealers trick consumers into signing blank contracts: Taking advantage of consumers' lack of legal knowledge, some dealers deceive them into signing blank contracts. For example, when a consumer is completing purchase procedures, the dealer might verbally claim that only a 25% down payment is needed for a loan of 40,000 yuan, on the condition that the consumer signs a blank contract. However, after the loan procedures are completed, the consumer may find that the actual loan amount on the credit contract differs from the initially promised figure.
I recently sold my financed car by having the buyer transfer the remaining loan balance to the bank. After the bank released the lien, the title transfer went smoothly. The process requires patience in checking documents—don't be careless. Additional costs may include a few hundred in intermediary fees, but don't fret over it. The key to safety is fully paying off the loan; otherwise, the buyer can't drive the car and may return it easily. My car was well-maintained and sold quickly—the loan was only a small portion, making it hassle-free. I recommend contacting the bank in advance to prepare documents and avoid delays—it can be done within a week. This method makes changing cars convenient—don't let financing scare you away.
