Can a Car with an Outstanding Loan Be Sold?
1 Answers
If a vehicle still has an outstanding loan, it cannot be bought or sold. Below are the specific details regarding the transfer or sale of a car purchased with a loan: A car bought with a loan does not have the vehicle registration certificate, which is required for the transfer of ownership. The loan must be fully repaid before the car can be sold. 1. Whether the car loan is obtained from a bank or a small loan company, the vehicle is mortgaged to the lending institution, and the loan applicant does not have ownership of the car. Therefore, until the owner repays the car loan in full, the transfer of ownership cannot be processed, and the car cannot be sold. 2. The borrower must cancel the mortgage registration to sell the car normally. The borrower can first repay the outstanding loan and then proceed with the cancellation of the car mortgage, allowing the transfer of ownership and the sale of the car.