Can a Financed Vehicle Be Sold?
1 Answers
A vehicle with an outstanding loan cannot be sold. To sell the car, the remaining loan must be paid off in full. The individual only has the right to use the car during the loan period. Once the loan is fully repaid and the vehicle lien release procedure is completed, ownership of the car will revert to the individual. Only with full ownership can the car be freely bought and sold in the market. One option is to negotiate with the buyer to pay a portion of the car's price upfront, use that to settle the remaining loan, and then proceed with the transaction, after which the buyer pays the remaining balance. Three essential procedures for used car transactions: Used car transactions primarily include: pre-evaluation work, technical condition assessment, consignment, trade-in services, price evaluation, and transaction practices. The mandatory procedures mainly involve vehicle documentation and maintenance records. Vehicle documentation: Includes three key certificates. The most common is the "People's Republic of China Motor Vehicle License" issued by the vehicle registration authority (DMV), the vehicle ownership certificate (similar to a property deed) called the "People's Republic of China Motor Vehicle Registration Certificate" also issued by the DMV, and the "Motor Vehicle Source Document" which mainly includes the nationwide standardized motor vehicle sales invoice and used car transaction invoice. Maintenance records: When a vehicle enters the usage phase, it naturally requires maintenance. The documentation of this process is called maintenance records, which come in three forms: 1. Vehicle user manual (owner's manual) 2. Maintenance manual (either separate or combined with the user manual) - this is particularly crucial when buying a used car as it comprehensively records all past maintenance including dates, mileage, and services performed. Note that some maintenance facilities upload records online rather than documenting them in the manual, and older vehicles not serviced at manufacturer-approved centers may have incomplete records. Buyers should pay special attention to these aspects. Tax and fee documentation: After vehicle registration and during use, various taxes, fees and insurance payments are made, collectively referred to as tax and fee documentation.
