Can I Sell a Car with an Outstanding Loan?
1 Answers
A vehicle under loan cannot be traded or sold; all loan payments must be completed, and the mortgage registration must be lifted before any transaction can occur. During the loan repayment period, the owner does not have ownership of the vehicle—the ownership temporarily belongs to the mortgage institution, and the borrower only has the right to use the vehicle. Below are legal methods to sell a mortgaged car: First, contact a buyer and negotiate for the buyer to prepay the remaining loan. Then, retrieve the vehicle registration certificate, vehicle qualification certificate, and purchase contract from the bank, and proceed to the vehicle management office for the transfer of ownership. Alternatively, visit the bank with the buyer to process a mortgage transfer agreement. This requires providing the original and a copy of a valid ID, the vehicle mortgage contract, and the vehicle license, followed by fingerprinting and signing. The vehicle's source must be legal, and its details can be verified at a 4S shop or through the traffic police vehicle system. The new owner can then purchase insurance using the vehicle license. The ownership of a vehicle under loan belongs to the lending bank; the individual only has the right to use the car. Only after the loan is fully repaid and the individual completes the vehicle release procedures will the ownership revert to the individual. With full ownership, the car can then be freely bought and sold in the market.
