Is anybody aware of the procedure of reselling a car if its loan is not over.....

lilip
By lilip
By lilip• 15 Jan 2009 10:51
lilip

Thanks for the answers.......

By Bozzini• 13 Jan 2009 11:38
Rating: 5/5
Bozzini

1. Find a prospective Buyer

2. Check with him/her if he can pay up cash or want to take over your loan.

3. If its cash, xgo and clear your loan. Then Bank will issue a letter to Traffic that car is in your name. Then you can transfer it to the Buyer.

4. If he/she is willing to take over your loan, they have to get their bank to approve of the loan first.

5. Then you jointly go to the bank and prepare letter to this effect. If its b/w banks, they will issue letters appropriately.

If its a small amount thats outstanding, it would be wise to clear the loan and sell it off, or convince the buyer to do so. cos banks are getting very nasty with loans approval these days.

Good luck.

By om Maui• 13 Jan 2009 11:04
Rating: 5/5
om Maui

if i may add to option 1, once the bank clears you from the loan, you have to go to traffic department to transfer ownership.

By pinoyaccountant• 13 Jan 2009 10:56
Rating: 4/5
pinoyaccountant

Ask for the bank, as far as I know, you can look for the buyer and if the buyer is willing to pay and buy the car as the assumed owner, transfer is to be concurred by the issuing Bank upon payment of arrears, if any.

Else, if you want you can look for the buyer and assumed the car without the transfer of ownership and you will still pay the bank on monthly installments. But this might pose risk for you.

Option 1 is better.

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