Can a Car Still Under Financing Be Sold?

[SanStephanie]

Generally, the vehicle title (also known as the 'big book') of a car under monthly financing is mortgaged to the bank. Before the loan is fully repaid, selling the car is not permitted. Only after the loan is completely paid off will the ownership of the vehicle return to the user, granting them the freedom to sell the car. Here is some information about the Vehicle Registration Certificate ('big book'): Introduction: The 'Vehicle Registration Certificate' is the legal proof of vehicle ownership, kept by the vehicle owner and not carried with the vehicle. It is required for any vehicle registration procedures such as transferring ownership or changing registration, and it records relevant details about the vehicle, functioning as the vehicle's 'household register'. Content: By reviewing the contents of the Motor Vehicle Registration Certificate, one can obtain relevant information about a car.

[SanGabriel]

I once dealt with a car that still had an outstanding loan last year when I urgently needed money and had to sell it. First, I had to contact the financing institution to clarify the rules. Most banks will require the buyer to pay the bank directly to settle the loan before the lien can be released and the ownership transferred. I found an acquaintance who agreed to pay the bank first and then give me the remaining amount in cash. The process took almost two weeks because we had to wait for the bank to confirm the loan was fully paid. If the car’s value was lower than the loan amount, I would have had to cover the difference out of pocket, which is quite troublesome. I recommend evaluating the car’s residual value early and not waiting until you’re in urgent need. In the end, everything worked out, but it was a real headache. From now on, I’ll make sure to pay off the loan completely before any transaction to avoid the hassle.

[Catalina]

As someone who has worked in the car dealership industry for years, I know that a car with an outstanding loan can indeed be sold, as long as you handle the loan institution properly. The key is ensuring the buyer prioritizes paying off the bank loan during the transaction; otherwise, the ownership transfer won't go through. The process involves first assessing the car's value—if it covers the loan balance, things are easier; otherwise, you'll need to cover the difference. For private sales, make sure all documents are complete to avoid buyers backing out. I've helped friends with this before, and using a dealership as an intermediary can save hassle, though it costs extra in commissions. In short, don't be intimidated by the process—good communication is key.

[MacAaron]

Selling a car with an outstanding loan carries significant financial risks. I've seen friends unable to sell their cars after prices plummeted, ending up paying out of pocket to settle the loan. The reason is that market prices often fall below the remaining loan amount, turning the car into negative equity which becomes a major headache. Operationally, you can have the buyer pay the bank directly to release the lien, but until full payment is received, the car still belongs to the bank. It's best to check online car valuations and budget carefully to avoid unexpected losses.