Can a Car with an Outstanding Mortgage Be Sold?
3 Answers
Owners cannot transfer the title or sell the car before fully repaying the auto loan. Only after the loan is completely paid off can the vehicle be sold. Below is a detailed introduction about car installment payments: 1. Introduction: Car installment payments refer to users paying in several installments, with monthly payments. Installment payments are a hot topic in the current auto market. In the current sluggish market environment, many merchants view installment payments as an effective means to capture market share. 2. Payment Methods: The auto industry offers various forms of installment payments, mainly three: bank consumer loans; loans from automaker financial companies; and financial leasing methods.
Hey, I just helped a friend with this! You can sell a car on finance, but you need the bank's approval first. When the auto loan isn't fully paid off, the vehicle title (green book) is held by the bank, meaning the car isn't completely yours yet. To sell it, you either need to pay off the loan yourself to retrieve the title, or have the buyer pay a down payment so you can settle the loan with the bank. Nowadays some platforms offer bridging services—they'll cover your loan repayment for a small fee, then you repay them after the buyer pays in full upon transfer completion. Never believe claims like 'you can sell without transferring ownership'—that scams the buyer and leaves you stuck with the loan. Last month my neighbor used a licensed used car dealer and got the repayment and lien release processed in just three days.
Last year when I changed cars, I encountered the same situation and directly called the financial consultant at the 4S dealership for advice. He said there are two most reliable ways to handle it: If there isn't much left on the loan, it's recommended to borrow money to pay it off before selling; if the price difference is too large, have the buyer deposit the payment into the bank's escrow account, and the bank will release the mortgage only after receiving the money. Never conduct private transactions. My colleague tried to save trouble by skipping the formal process, and the buyer delayed the final payment, resulting in the car being gone but the loan still needing to be repaid. Nowadays, many used car markets have dedicated financial windows to handle such transactions. Spending 500 yuan on an agency fee saves a lot of hassle.
