The starting point: Are you happy with your new car, which you were able to buy thanks to a loan. The payment of the loan installments was not initially a problem. But then there will be changes in your life that you didn’t take into account when you financed your car. You may only get subsidies for reduced work, or you will lose your job completely, new life has announced itself or other reasons force you to refocus financially and therefore to the following question. Vehicle for sale despite current credit?
Selling with credit?
The answer to the question of whether the sale is possible even with ongoing financing is “And“Even if it’s not ideal, of course. Therefore, you should pay attention to a few points to bring the sale to a good conclusion. In any case, open communication is necessary so that everyone involved has the same level of information and you are aware of how to proceed correctly It is first necessary to clarify the conditions under which the sale of the vehicle is possible, that is what conditions from the loan agreement are relevant to their case.
Loan with allocation!
You entered into the loan agreement for a specific purpose, e.g. specifically for the purchase of a car (car loan), followed by the relative provision for the issue of the loan amount. The lending bank remains the owner of the car it bought until the loan (principal and interest) refunded in full they became. Until that time, the Bank maintains – as a kind of pledge – the registration certificate (part II of the registration certificate). Hence the need to tell your lender notifythat you want to sell your vehicle, because without the registration certificate – who is in the bank – cannot be sold. Neither cancellation nor registration with the admissions office is possible. Only with one Lender approval then the sale is doable for you.
Loan without allocation!
If you – other than the case described above – no allocation have agreed on the loan (cash loan), the sale of the car can be done much easier. In this case, the registration certificate remains not in the bank. Possession of the letter officially documents that you are the owner of the vehicle. Returning to the allocated loan, the sale of which is rather complicated. We advise you to proceed as follows in the order:
- Notify the lender of the desired sale
Without the consent of the bank (owner of the vehicle) for sale, any thought of selling is useless. So the first step is to contact the lender to get approval and what to do next. are eg special documents required, there is “compelling“Terms of sale or one first, by when does the car have to be sold? Of particular importance is the question of how outstanding loan amount it should be proceeded. The bank may insist that you pay the outstanding balance pay before sale. And this is a so-called Advance payment penalty charged is not uncommon. This is an amount that compensates the bank for the loss of interest that it would have received within the regular term of the contract. However, it is also possible that your bank will allow the buyer of your car to take over the loan agreement and residual debt.
- Evaluation for your vehicle on the automotive market
Find out the current value of your car so you know what purchase price you can estimate. You have various options for this, such as using (partially) free internet portals for evaluation. A professional assessment, which you may have prepared in a workshop, is arguably more meaningful, but it is also considerably more expensive than online assessment. In any case, always contribute your information to a realistic assessment, also provide information on important facts such as the fact that your car is a “accident vehicle‘ (if it is the case). Once you have determined the current market value, think about the purchase price you want to offer your car for and set the price a bit higher than the amount of the outstanding loan On. Ideally, you can not only pay off the remaining debt after the sale, but also make a small profit.
Be open and honest! Specify from the outset that for the vehicle offered the financing is still pending and in this context the vehicle registration document (part II registration certificate) is not available. If interest is then expressed in the purchase, it can be assumed that the vehicle registration document that is still in the bank will probably not pose a problem for the buyer. “Pictures say more than a thousand words“: A good sales ad is only complete with meaningful photos (interior / exterior, damage, mileage, etc.). And pay attention to the quality of the photos! (exposure, sharpness, etc.).
Redeem or transfer credit
If the buyer is certain, proceed as follows as agreed with the lender. Or they can loan repayment from you, after which the bank delivers the vehicle registration document to you, which it then delivers to your contractual partner or buyer take over the current loan agreement and simply continue to repay the outstanding loan amount. The bank’s requirements for such a transfer should be known and settled in advance. It must also be agreed with the buyer if you want to buy the car disconnection or if the vehicle with official license plate is taken over. In connection with the sale of the vehicle, the question always arises as to whether the car private or al Handel is to sell. Both options have advantages and disadvantages:
Sale between private individuals
- Advantages -> relatively many interested parties, it is likely that a higher purchase price can be obtained
- Disadvantages -> the financing in progress can tend to “discourage” private individuals, it is necessary to deal with an advertisement, a relatively high (time) consuming sales process
Trade-in sale
- Advantages -> the car can be trade-in, there is no need to look for a buyer and the sales process is relatively quick and easy
- Disadvantages -> the price obtained should be significantly lower than for a private sale
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