Banks’ practices in this regard may vary from time to time, and interest rates may change. The question of how to sell a car purchased with a loan is one of the questions that come to mind after the vehicles are purchased with car loans.
First of all, it should be noted that there are two main options for the sales of vehicles with loan repayments, and these options are independent of which loan is paid to which bank at which interest rate.
Bank Takes The Tool Under The Mortgage
When you buy a vehicle with a vehicle loan, the bank puts mortgages on your vehicle during the period you pay your loans. For this reason, the vehicle cannot be sold without removing the mortgage. However, we can say that selling vehicles is not a difficult process, as is buying vehicles with vehicle loans. Nowadays, the vehicles purchased on credit with suitable payment options may need to sell the owners later.
We said that there is a mortgage issued by the bank on your vehicle whose credit payments are still ongoing. In order to be able to remove this mortgage, you have to pay all of your debt to the bank. In this way, the vehicle becomes a horse for you and you can easily sell it. However, since the mortgages are not removed from the vehicle while the installments continue, you cannot sell the vehicle without transferring the debt.
Therefore, we must state that the first option is to remove the mortgage, that is, to pay all of the vehicle’s debt. In short, you cannot continue selling the vehicle and paying the vehicle loan installments yourself. We can say that this option is a very healthy option. We recommend that you choose this option if you are able to pay the rest of the loan debt.
The second option is to transfer the remaining vehicle loan debt to the person who will buy the vehicle. After this transfer, the new owner of the vehicle is obliged to continue to pay the remaining debts on a monthly basis. This transfer takes place in a notarized manner and the person purchasing the vehicle declares that the vehicle will pay the remaining loan debt installments.
In the contract, the person who will own the vehicle after the completion of the payments is also specified as the person who purchased the vehicle. In this way, the delivery of the vehicle is carried out in a notarized way. Of course, the person who sells the vehicle at the agreed price is also paid.
A Risky Option
There is also an option based on mutual trust for the sale of the car purchased with credit. In this option, the remaining credit debt of the vehicle is paid by the person receiving the vehicle. We can say that such situations may be the case if people know each other or even more relatives. What makes this option risky is that after the buyer pays his credit debt, the seller is likely to give up selling the vehicle.
Absolutely not recommended because there are no legal contracts or premises. It is a verbal agreement entirely between individuals. Before making such decisions, always question how reliable the salesperson is and if the person selling the used car is not someone you know, avoid such compromises.
As you can see, there are three methods that you can evaluate in total, but the first two have legal bases. As the second option is a bit troublesome in terms of time, we see that people with the situation remove the mortgage of their vehicles and then go on sale. Of course, transferring credit debt, which is the second option, is also a legally secure method, and you can choose this method if you do not have enough savings to remove the mortgage.