Can a Financed Car Be Transferred? What Procedures Are Required?

[RebeccaRose]

Financed cars cannot be transferred. Below are the specific details: Reasons Why Transfer Is Not Allowed: The ownership of a financed car is not in the hands of the borrower but with the bank. The borrower has no right to transfer it, meaning the car cannot be transferred until the borrower repays the loan in full and completes the vehicle mortgage release procedure at the vehicle management office. Only then does the borrower fully own the car's title and can proceed with transfer and sales transactions. The required procedures for vehicle transfer are as follows: For the seller: ID card, vehicle registration certificate, vehicle license, original purchase invoice or transfer receipt. For the buyer: ID card, relocation certificate (if applicable). For both parties: a used car sales contract.

[ZaneRose]

Yes, a financed car can certainly be transferred. I used to see this often when working at a dealership. The key is settling the loan first. If the loan isn't fully paid off, the bank or lender holds the car as collateral - you'll need to pay off the balance and obtain a loan clearance certificate along with release procedures. Then, bring the vehicle's title (registration certificate), your ID, and the buyer to the local DMV for the transfer. Fill out a transfer application, pay the fees, and get the vehicle inspected. Don't overlook details like clearing all vehicle taxes, or you might hit frustrating roadblocks. The process isn't overly complicated, but dragging out the loan portion carries liability risks. It's best to clarify the lender's rules beforehand to avoid disadvantages.

[Denise]

Friend, I know a thing or two about this. Transferring a financed car is doable—I've got an acquaintance who's done it. The prerequisite is paying off the loan; only then will the bank release the vehicle. Head to your lending institution to obtain a loan settlement certificate and retrieve the vehicle title (green book), and you're good to go. During the transfer, both parties just need to bring their IDs to the DMV for signatures and a vehicle condition check. Don’t forget to bring tax documents to avoid delays. Be careful—transferring before clearing the loan could leave the debt on your shoulders, which is a huge hassle. I recommend agreeing with the buyer beforehand on who covers related costs to prevent disputes and keep things smooth. Keeping it simple saves headaches.

[DelConnor]

Old experience tells us that a financed car can be transferred, but only after the loan is fully repaid. First, settle the loan and obtain a clearance certificate. Then, go to the DMV to complete the transfer procedures, bringing all required documents to ensure the vehicle's legal status. Don't skip steps—it's risky. For example, selling the car before clearing the loan could leave you liable, possibly resulting in financial loss. In short, take it step by step; safety first.