Can You Sell a Car with an Outstanding Loan?
1 Answers
You cannot sell a car with an outstanding loan. Reasons why you cannot sell the car: If the car is under a mortgage, the vehicle's registration certificate is still held by the bank. Strictly speaking, the car does not truly belong to the individual yet. Therefore, the vehicle cannot be sold until the loan is fully repaid. Methods to legally sell the car: If you urgently need to sell the car, you must first pay off the remaining loan in full. You can negotiate with the buyer to pay a certain percentage of the car's price upfront, use that amount to settle the remaining loan, and then proceed with the transaction, with the buyer paying the remaining balance. Alternatively, you can seek a bridging finance institution to cover the outstanding mortgage payments, complete the necessary paperwork for the transfer, and then proceed with the sale.