pay off the loan. I have sold cars b4 where I made a profit and I paid off the car loan but now I just want to be able to transfer the loan. The loan is with the car co.that sold me the car......thought perhaps someone knows how this works and is it a good idea?
Thanks so much.
2006-12-03 01:18:31 · 11 answers · asked by jazi 5 in Cars & Transportation ➔ Buying & Selling
I am asking this because I wanted to give car to a family member......otherwise I'll just pay off the loan when I sell the car. I Can sell for more than the loan anyway.
2006-12-03 01:31:37 · update #1
Thanks for advice everybody about how to do this.....as I said I've sold and paid off loans b4 but wanted to see if there was a way to transfer to a relative who wanted to assume payments....thanks alot everyone!
2006-12-03 16:00:35 · update #2
Hello Jazi
You have to sell it for as much as possible and pay the loan off.
Loan company will not permit a transfer as it is based on your application. Sell it on ebay with a minimum reserve price
2006-12-03 01:22:34 · answer #1 · answered by Jexf 2 · 0⤊ 0⤋
When you get rid of the car you must pay off the loan if it is in relation to that particular vehicle. Pay it off and get a cash loan from your bank, do it as soon as you can, if you don't, the new buyer will be buying something that legally belongs to the finance company, and therefore it's not yours to sell in the first place. Remember the registered keeper is not necessarily the legal owner!
End the finance early and take out a new loan for the new car!
It is true of course that the new car you buy in a private sale, could also belong to a finance company and not the seller who, is simply someone you give the cash to who lets you drive away a vehicle!
2006-12-03 01:27:05 · answer #2 · answered by My name's MUD 5 · 0⤊ 0⤋
The people who you have the loan with are the owners of the car, not you, till the loan is paid off, so therefore only you can pay off the loan if you sell the car. If you part exchange the vehicle, the outstanding loan will be added to your bill by the dealership, then they will forward the outstanding amount to the loan company.
2006-12-03 01:27:01 · answer #3 · answered by mistymiss 6 · 0⤊ 0⤋
It really depends on the contract with your loan company. For most contracts, you basically are paying off the loan, and using the car with their permission until such times as you pay off the loan and then the car becomes yours. Until you have their go ahead to sell the car, you really shouldn't. you should also check the clauses on paying off the loan early - some let you, some don't, and almost all will include a penalty clause to end the contract early.
They will want the most money out of you as they can and will normally expect interest for the remaining loan period at least.
I would check with your loan company about transferring the loan -they might let you away with it since you are still going to be paying them money.
2006-12-03 01:28:36 · answer #4 · answered by Kami 2 · 0⤊ 0⤋
Hi,
If you borrowed from the Bank, or entered into a loan agreement, then you could dispose of the Honda and keep up the payments. However, if you entered into a Hire Purchase or lease agreement you should contact the lending source to determine your outstanding liability and pay the required amount before disposing of the vehicle. Check out your copy of the paperwork you've signed, the answer will be set out under headings like -Termination, Early settlement, etc.
P,S. Always bear in mind that as long as payments turn up as usual the lenders are not likely to check on anything!
2006-12-03 11:51:47 · answer #5 · answered by Davy Crockett 3 · 0⤊ 0⤋
You'll have to sell it outright and pay off the loan. Car loans are NOT assumable. It's NEVER a good idea to try to get around that. Your credit report will show the loan against your name until it's paid off. And since you will still be the legal owner you will be responsible for any damage, tickets, etc.
2006-12-03 03:58:39 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Would have thought you had to sell the car, get your payment then settle your loan... any outstanding balance between the amount you got for the car and the amount you owe for the loan will be yours. Ask you loan company or car finance company of they would give you a final settlement figure which may end up being less than the amount you still owe them at present!
Source: I'm in the same position and enquired about this once before...
2006-12-03 01:35:40 · answer #7 · answered by Anonymous · 0⤊ 1⤋
THINK ITS EASIER TO PAY OFF YOURSELF,think you have to have payed a third of the car value to be able to sell legally,but you still have to make the payements etc,if you were selling private,the chances are the person buying would hpi check the car and know you still have outstanding hp,think you can phone the loan company direct and they will tell you exactly how much you owe, hope this helps
2006-12-03 11:26:52 · answer #8 · answered by nigel the builder 3 · 0⤊ 0⤋
You should pay off the loan...nobody will want to buy a car with outstanding finance.
2006-12-03 01:22:39 · answer #9 · answered by Mr Crusty 5 · 0⤊ 1⤋
refinance the loan with your bank. they'll give you the money you pay the loan company the car is yours you sell the car and pay the bank back. if its blackhorse finance you'll get money back.
2006-12-03 01:30:48 · answer #10 · answered by Anonymous · 0⤊ 0⤋