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Can I Sell the Car Before Paying Off the Auto Loan?

1 Answers

McEdward

07/30/25 7:53am

You cannot sell the car before paying off the auto loan because the ownership of the vehicle does not yet belong to the owner. Here are some important points to note about releasing the auto loan lien: 1. Timeline for lien release procedures: After the auto loan is fully repaid, the lending institution will notify the borrower within one week to complete the lien release procedures. Documents required for the lien release include the ID card and its copy, loan clearance letter, etc. Typically, the lien release process can be completed within 1-2 weeks. 2. Removing the GPS device: When purchasing a car on installment, a GPS device is usually installed to prevent the owner from defaulting on the loan. After the auto loan is fully repaid, it is essential to remove all GPS devices from the car; otherwise, driving privacy could be completely exposed.

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