Can a Vehicle Purchased on Installment Be Transferred?
3 Answers
Vehicles purchased on installment cannot be transferred. For a car bought through installment payments, the ownership of the vehicle belongs to the bank until the loan is fully repaid. The individual only has the right to use the vehicle and cannot sell or transfer it. If you wish to resell or transfer a mortgaged vehicle, you must first repay the loan in full. During the repayment process, it is important to keep all repayment records, as these will be required when processing the vehicle transfer. The documents needed for vehicle transfer include: 1. Identification cards of both the buyer and seller; 2. Vehicle registration certificate; 3. Vehicle license; 4. Original purchase invoice or transfer receipt; 5. If the seller is a company, the original organizational code certificate and official seal are also required.
I remember that transferring ownership of a car bought through installment payments can be quite troublesome, as the ownership usually remains with the bank until the loan is fully repaid. When attempting to transfer, the bank must give its approval because they need to ensure the security of the debt. If the seller transfers the car privately without repaying the loan, the buyer might face debt collection or repossession by the bank, which poses significant risks. From helping friends handle such cases a few times, I've learned that it's best to contact the bank in advance to pay off the remaining balance or obtain a release document before proceeding with the formal transfer process. This might involve additional costs and time, but it helps avoid legal disputes. In short, waiting until the loan is fully settled before transferring is the safest approach, as doing otherwise can easily lead to complications.
From experience, transferring ownership of a financed vehicle is really not very feasible. The title is in a lien status, controlled by the bank as the lien holder; if the debt issue isn't resolved before the transfer, the buyer will still be responsible for the remaining loan after purchasing the car, and the seller may also be held accountable. I recommend first checking the vehicle registration certificate to see if there's a bank lien, then directly coordinating with the bank to pay off or refinance the loan. The DMV won't process a transfer without releasing the lien, otherwise the transaction would be invalid. The whole process is time-consuming and could potentially affect the buyer-seller relationship, so careful planning is essential to ensure a clean and straightforward transaction.
