Can I Sell a Car That's Still Under Loan?

[StEmiliano]

A car that is still under loan cannot be sold. This is because a car purchased with a loan has been registered as collateral with the lending institution. To transfer ownership of the vehicle, the vehicle registration certificate is required. If the car loan has not been fully repaid, the collateral registration cannot be canceled, and a car without canceled collateral registration cannot undergo ownership transfer transactions, making it naturally unsellable. However, if the buyer is willing to pay the purchase price to the car owner first to repay the loan, the car owner can then apply to cancel the car's collateral registration after fully repaying the auto loan, enabling the transfer process. Alternatively, the owner can borrow money from friends or family to repay the car loan before proceeding with the sale.