A car loan is a serious step that many buyers face. But sometimes you have to think about selling a vehicle. The reasons for such decisions may vary. Regular cars will not be difficult to sell. It is much more difficult with those whose debt has not yet been repaid.
Lenders often take title after they enter into a loan agreement. Why is this being done?
Simply to ensure that the borrower will not enter into any transactions related to the alienation of this property. And it will not use it as collateral when concluding agreements with other financial organizations.
The title is returned to the owner after the debt is fully repaid. The car itself is then deregistered.
PTS with the word duplicate means that the original PTS for the car is in the bank. Even if the loan was issued without a title, this does not mean that the client can dispose of the vehicle at his own discretion.
Are credit cars sold legally?
In this case, organizing a sale is quite acceptable. The main requirement is that borrowers notify the credit institution. It is illegal to try to find other solutions, bypassing official communications.
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If the PTS remains in the hands of the owner
It is best to contact the bank with a passport not only of the applicant, but also of the vehicle itself. Selling without the consent of the financial institution will be perceived as an act of fraud.
Bank collateral agreements usually provide for two possible options.
- The car's passport is kept in the bank until the debt is repaid in full.
- Registration of the so-called nominal pledge. This means that both the car and the title remain with the owner. The car is only subject to certain restrictions.
It is the second option that is considered the most convenient. It simplifies the sales procedure the most. The owner can use the title to register a change of ownership.
But even in this situation, the bank’s consent to carry out the operation is mandatory. Otherwise, all actions will be considered fraudulent.
How to sell a car if the title is in the bank?
There are quite a few sales schemes that allow you to transfer a car from one person to another. Such procedures are not without financial costs, and they also take quite a lot of time. But it is better to resolve the issue through legal means than to deal with the consequences later.
Selling a car yourself
This is a way for those who want to not only get rid of debt obligations, but also save on cash costs. But you will have to search for buyers yourself.
If the issue is resolved successfully, the buyer goes with the seller to the bank to close part of the loan with their own funds.
But this method is only suitable for those who do not have debt.
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First, the new buyer pays the bank the balance of the loan. After which the car is simply taken out of collateral. The car passes from one owner to another and is deregistered with the traffic police. It may take a lot of time to find a buyer. But the maximum is obtained from the cost.
We organize a sale through court
This option is not convenient either for borrowers or financial institutions. In courts, the value of vehicles is set to a minimum. This may be enough only to pay the principal debt, but not with interest and arrears. This option is devoid of benefits for both parties.
When does a bank participate in a transaction?
If you have a large debt, you can contact a financial institution to write a statement. It states the inability to continue paying debts.
Then the bank itself looks for buyers for its collateral. Sets the price and deals with other issues. The difference is still reimbursed by the former owner if the proceeds are not enough.
According to the Trade-In system
This service appeared not so long ago, but has already become quite popular.
The sale of the car and everything connected with it is carried out by the car dealership. But to do this, you need to issue a power of attorney to his employees. And drive the vehicle to the site. This is necessary to determine the cost as accurately as possible.
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The bank is drawing up a tripartite agreement. The balance of the debt is repaid by the representatives of the salon. After which the car is deregistered.
On-lending programs
A good option if the payment balance is not that large. For the remaining amount, another consumer loan is simply taken out. All that remains is to deposit part of the necessary funds and pick up the PTS. P After this, the vehicle is sold in the usual ways.
Among the advantages:
- No red tape.
- Opportunity to get a good price for a vehicle.
But you still need to pay interest on the second loan. However, they may increase due to the presence of one loan in the client’s history.
Re-issuance of loans
Transferring loans to other persons is one of the possible options. But the deal will be finalized only after the bank receives all the documents it needs. Specialists must ensure the solvency of clients.
Using Auctions
This option is becoming increasingly popular. The borrower, under a successful set of circumstances, sells the car at high rates. And the opportunity to pay off current debt. The car is sent to the new owner after deregistration.
What to do if your car is seized?
If the investigator seizes the vehicle, then legal sale ceases to be possible.
And the owners are responsible for any transactions made. In most cases it will be criminal. Other possible penalties are monetary fines or correctional labor for at least two years.
You will have to start legal proceedings with the former owner if a seizure is imposed on a car that has already been sold.
Sale of cars that were purchased on lease
A leasing agreement has the same status as a regular lease. The value of the car increases significantly when such agreements are concluded. But there are also a number of advantages that do not appear when using other schemes. Most often, the leasing scheme is used by those who have received the status of legal entities.
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In this case, you must carefully read the terms of the contract.
If a ban on sales is not strictly indicated there, then the corresponding action is quite doable. However, you cannot sell the vehicle on the same terms as those in the contract. If the vehicle is leased, then it cannot be sold until the debt is fully repaid.
Only the conditions themselves described in the leasing agreement are sold. In such cases, the document is simply reissued from one person to another. For many potential buyers, this method is considered effective.
Here are just a few benefits worth emphasizing.
- An effective solution for those who need to purchase expensive transport, trucks.
- Additional vehicle maintenance services, if this is included in the terms of the contract.
- Mobile, the simplest financing scheme.
- Maintaining complete confidentiality of the data received.
- You do not need your spouse's consent to perform the operation.
We organize the sale by proxy
The owner of the vehicle, again, needs to independently search for a buyer. And agree with him on the cost of the operation. The total of all remaining monthly payments is deducted from this amount.
If there is a difference, the buyer gives it to the seller. The latter issues a special power of attorney for the right to drive a car.
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The next step is for the buyer to pick up the vehicle from the seller. And he continues to pay off the loan. When the debt is paid off in full, all documents for the car are given to the buyer.
In practice, this option is quite rare. After all, there are too many risks for both sides.
The car is usually registered to the sellers. Therefore, they are the ones who solve all problems related to banks, insurance, and other similar issues. For buyers, the risk is that sellers may refuse to re-register after all funds have been deposited.
About banking services
Financial institutions offer a number of additional opportunities for those interested in selling a car.
- The already mentioned Trade-In system. Almost the entire transaction is handled by the salon together with the bank.
- Use of auctions. They usually become a last resort.
- Exchange for problem deposits. Instead of cashing out, buyers receive the property in their hands.
- Refinancing.
- Property remortgage. Instead of a car, other property becomes collateral if it is on the permitted list.
- Transferring keys with documents to the bank. Used if there is a new buyer found by the bank or owner. The car is transferred into his ownership, or continues to play the role of collateral. Depending on how much money the other party has. After the transaction is completed, the loan passes to the new owner.
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Vehicles that have outstanding liabilities may well be sold. During the procedure, the seller will probably encounter difficulties, but this issue will be resolved.
The main thing is not to look for workarounds, but to act only officially. The best option is to negotiate with the bank at each stage. Then the sale will be successful.
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Most people, when buying a car on credit, are confident in their financial capabilities. However, life is unpredictable, and situations often arise when you have to think: how to sell a car on credit?
The most common reasons forcing you to sell a vehicle are:
Loss of income and ability to pay a loan;
Desire to purchase a new car;
The need for money and the lack of another way out of the situation.
Interesting to know!
According to statistics, only 30% are able to profitably sell a car purchased on a car loan. This is due to various nuances that occur during the sales process.
In order to sell a car profitably and avoid problems with the bank, you need to know all the intricacies of the transaction and its pitfalls.
How do you know if you can sell your credit car?
First of all, you should re-read the loan agreement. This document reflects the rights and obligations of the parties, the type of loan, repayment terms, as well as information about the collateral. Perhaps the car does not act as collateral, therefore, it can be sold!Important Features
40% of Russians take out a non-targeted loan for the purchase of a car, which does not require collateral. This information is reflected in the contract.
The agreement talks about the possibility of early repayment of the loan. If the bank is ready to offer this service, then why not use it?
To do this, you need to prepare the required amount of money, submit an application, make a payment, remove the encumbrance from the car and sell it.
You can find out how to sell a car if it is on credit from the bank itself. All you have to do is contact the department. Managers will talk about sales options. Sometimes banks accommodate clients halfway: they quickly issue permission to sell or do it themselves.
4 Legal Ways to Sell a Loan Car
1. Obtain permission from the bank;2. Re-register the collateral;
3. Take advantage of refinancing;
4. Sell your car through a car dealership.
Permission from the bank
Getting permission from the bank is a common way. To do this, the borrower needs to submit an application to the bank asking whether it is possible to sell the car taken on credit. The bank will review the application and announce its decision.Remember!
Of 100% of applications submitted, only 2-3% are approved. It is not profitable for the bank to lift the ban on the sale of collateral, as this increases its risks. The presence of collateral is a kind of guarantee that the loan will be repaid.
The algorithm for selling a car by obtaining permission from the bank consists of the following steps:
1. Contact the bank with an application. If the desire to sell a car is related to financial difficulties of a valid nature, then confirm this with documents;
Important Features
The bank will accommodate you halfway if you decide to sell the car you borrowed due to loss of work or disability due to illness.
2. Waiting for the bank's decision. Often financial institutions offer alternative ways to solve the problem: installment plans, refinancing, as well as their assistance in selling the vehicle;
3. Search for a buyer. It can be found through advertisements on the Internet or in the newspaper;
4. Execution of the contract. It is issued at the bank, where the manager makes a note in the PTS. Part of the proceeds from the sale goes to pay off the loan debt, the rest goes to the borrower.
Interesting to know
If after resale of the car the loan is not paid, then the obligations on it pass to the new owner of the car.
The title of the vehicle is given to the new owner only after the loan has been fully repaid.
Re-registration of collateral property
Another way to sell a car that is pledged under a loan is to re-register the collateral.Remember!
This possibility is provided for by Russian legislation. An alternative collateral can be real estate or land.
Banks are more willing to re-register collateral. The costs of re-registration are borne by the borrower.
Car loan refinancing
Refinancing your car loan is another way to take the burden off your car. It is beneficial for the bank, but energy-consuming for the client.Remember!
The main thing in the refinancing procedure is to choose a suitable offer. To do this, you will need to study a lot of programs from Russian banks.
Experts advise paying attention to offers from:
Sberbank;
"Rosbank";
"VTB 24".
These financial institutions offer favorable terms and conditions. After refinancing, the encumbrance will be removed from the car, but a new loan will appear. Therefore, this method is relevant for those who can comply with loan obligations.
Selling a car through a car dealership
Most borrowers resort to this method. The deal is concluded between the bank, the borrower and the car dealership.Important Features
Before submitting an application to sell a car through a dealership, you need to find out which dealers the bank cooperates with. This information is available on the financial institution's website or by calling the hotline.
The disadvantage of selling a car through a dealership is the loss of a certain amount that is spent on paying for the services of the dealership. In this case, the borrower, in fact, does not participate in the process of selling the car that is pledged.
Punishment for illegal car sales
Articles are increasingly appearing on the Internet with ideas on how to sell a car without bank permission. You can try, but for such fraud you can lose your freedom.Citizens who do not want to spend time and money on legal ways to resell cars take the following risks:
A duplicate PTS is issued to the traffic police, since without it it is impossible to sell the car;
The car is put up for sale without the bank's knowledge;
They sell the car in parts.
All of the above actions violate the laws of the Russian Federation. There are penalties for them.
Remember!
For fraud and false denunciation under Articles 159 and 306 of the Criminal Code of the Russian Federation, punishment is provided in the form of a fine of up to 120,000 rubles or imprisonment for a period of 2 years.
The penalty is set by the court based on each individual case. According to statistics, 80% of scammers get off with a fine.
Help in selling a credit car
Every year there are more and more people who want to sell a car that serves as collateral for a loan. With them, companies appear that are ready to buy the car. You can find them through advertisements on the Internet.They are car dealers. The advantage of working with such a company is the affordable price of the service. It is 1.5-2 times lower than the price of salon services.
A broker can also help with the sale. He will consider different solutions and offer a suitable option.
Don't rush to sell the car yourself. Contact your bank, broker or intermediary company for help. A small overpayment for services will be repaid by a well-concluded deal.
Often, many motorists who have taken out a car loan, due to certain circumstances, are not able to repay it. In this case, they are forced to take extreme measures and get rid of the pledged vehicle. However, it is not so easy to do this, especially when the PTS is in the bank. We will tell you in more detail how to sell a credit car with and without title.
Why does the bank take away the title for vehicles?
To begin with, we note that after drawing up a loan agreement and receiving a bank loan, the future owner of the pledged car voluntarily transfers his title to the lender. What does it mean? This means that it is the PTS that guarantees that during the repayment of the bank debt the borrower will not sell his vehicle and will not be able to remortgage it to any other financial institution.
After the loan is fully repaid, the title returns to its owner, and the car is deregistered.
If you took out a loan without a PTS and it remains in your hands, this does not mean at all that the borrower has the right to dispose of the collateral at his own discretion until he repays the loan in full, although again this is a matter of trust.
Is it legal to sell credit vehicles?
Selling a credit car is completely legal, but only if the borrower notifies the credit institution. If he does not do this and tries to get out of the situation fraudulently, then this is illegal (we will talk about how to sell a credit car illegally and what consequences this entails a little later).
Attention! The sale of a secured car, carried out within the framework of current legislation and not contradicting loan agreements with the bank, is considered a completely legal action.
How to sell a credit car: PTS in hand?
Selling your vehicle if you have a title (which is very rare) is much easier than without it. However, even in this case, it is better to play it safe and notify the financial institution of your decision. In addition, this intention can be fulfilled if this action is not prohibited in the loan agreement. Let us remind you that in loan agreements it is written in black and white: “Selling a car that is pledged to the bank until the loan is fully repaid is strictly prohibited.”
Therefore, even if the PTS remains with you after processing the loan, there is no point in taking risks. Moreover, banks often notify MREO representatives about the owners who took cars as collateral. Therefore, before doing anything, you need to check with lawyers and bank representatives in advance whether it is possible to sell a credit car to you?
But most often, you can sell a secured car with a title in hand, but only if the loan balance is fully repaid.
What happens if you sell your car without the bank's knowledge?
You decided to use a trick, or did it unintentionally (without malicious intent), and wanted to sell your vehicle without the participation of the bank. What does this mean? For example, you have decided to sell your vehicle, and you already have several options for how to sell a credit car. But you did not inform the bank. What will happen? In this case, it all depends on whether you want to return the money received from the sale to the credit institution or not. If so, then no one will suspect anything. The plan for such a sale is as follows:
- searching for a potential buyer;
- meeting with the buyer and demonstrating the car;
- execution of a purchase and sale agreement and receipt of collateral (its amount must be equal to the remaining loan amount from the bank);
- drawing up a receipt (to insure the buyer);
- early repayment of the loan using the amount from the received collateral;
- closing a loan agreement;
- deregistration and registration of the car to the new owner in MREO.
If you found out how to sell a credit car in Moscow and found a buyer, but did not want (or forgot) to return the money from the sale of the car to the credit institution, then, firstly, you may be held accountable under the article “Fraud in the field of lending.” (Article 159 of the Criminal Code of the Russian Federation), and secondly, all responsibility for further repayment of the loan will be shifted to the shoulders of the buyer. Consequently, he will also be able to sue you in court with a request to recognize the transaction as illegal, since it was carried out on deliberately dishonest conditions (Article 179 of the Civil Code of the Russian Federation).
Will the bank agree to sell the pledged car?
If you do not know how to sell a credit car, but have firmly decided to sell it, contact the bank. In this case, the credit institution may reconsider your loan agreement and even find clients willing to purchase your “iron horse.” However, she will agree to do this only in two cases:
- if you have real reasons proving the impossibility of further repaying the loan (for example, this is due to loss of employment, liquidation of all your assets through bankruptcy, due to serious illness, etc.);
- if the loan is repaid early.
The advantage of such an appeal is the fact that throughout the entire purchase and sale transaction, representatives of the bank will monitor its implementation (including the legality of the execution of documents).
This means that you will save a tidy sum on professional lawyers. The downside is the loss of time and money (after selling the car you won’t get a penny). Of course, the bank knows how to sell a credit car without unnecessary red tape. Therefore, most likely, he organizes an auction (he uses exactly the same method when selling property confiscated by a court decision for non-payment of a loan). And as you know, at such events you can sell a car much cheaper than its real market value.
What is the easiest way to sell a car on credit?
One of the simplest and most legal options for selling a car is the following scheme: the borrower finds a potential buyer, shows him his “iron horse”, and if he is satisfied with everything, goes with it and the documents to the bank. Next, the prospective buyer pays the remaining amount on the loan to the credit institution. After closing the loan agreement, the borrower receives the title and, together with the buyer, goes to the notary to draw up a purchase and sale agreement, and then to the nearest MREO to re-register documents and the vehicle in particular.
Car loans are one of the most popular banking products. This type of loan is in demand because it allows you to purchase a new or used car on the most comfortable terms and pay its cost in installments.
However, due to various life situations, there is often a need to sell your car; for example, due to an unexpected layoff, you may urgently need money. And then the question arises: is it possible to sell a credit car?
How to sell a credit car - nuances of the procedure
Before you begin the process of selling your car, you need to do your research thoroughly. Basic information that describes the possibility of changing vehicle ownership is contained in the loan agreement signed with the banking organization.
The easiest way to sell a credit car is if it was purchased with a consumer loan. In this case, the borrower can do whatever he wants with his property, including selling. The situation is different with car loans. In this case, the purchased car acts as collateral for the payment of funds.
To sell a car and not have any problems with the bank, it is recommended to first consult with the organization’s employees. They usually help their clients even in the most difficult situations. An employee can offer several options for solving any problem, be it the need to urgently receive certain funds, or change the car to another.
It is strongly recommended not to act without the knowledge of the banking organization. The bank has all the documents related to your car loan, so concealing information can cause numerous lawsuits, from which it will be extremely difficult to emerge victorious.
You can sell a car on credit, for example, by renewing the loan. In this case, the car will become your property completely, but the collateral will have to be replaced, for example, with personal property.
How to sell a credit car if you have a title in your hands
A car passport contains detailed information about the owner, as well as the technical characteristics of the car. Many banks today take PTS from borrowers and store it at home to avoid risks.
If you have a passport and you want to sell the vehicle, you can proceed according to the following algorithm:
- Preparing an application for the desire to sell a car. It is written in free form and submitted to the banking organization.
- Communication with bank employees. Company employees will be able to offer you several options for further action. Including, the organization can take on all the responsibilities for the sale: searching for a buyer, assistance in preparing documents, etc.
- If you decide to look for a buyer yourself, then you can do the same, but all other stages associated with the sale will be carefully monitored by bank representatives.
Selling a credit car has many nuances. You should definitely remember that its cost may differ greatly from how much you bought it for, even if the purchase was made quite recently. In addition, the sale procedure can take quite a long time, and an urgent sale will reduce the price tag to a minimum.
Sell a credit car if the vehicle is in the bank
Almost all modern credit organizations try to keep the passport for the car. In this case, the sale procedure must also take place entirely through the bank. The borrower will need to write an application and wait for a response from bank employees. The answer will certainly offer several options for solving the current problem. Usually the bank recommends selling the car through a car dealership, but you can also negotiate to find a buyer yourself.
There are two ways to sell a car:
- Registration according to the contract. An agreement is signed and notarized between the seller and the buyer, according to which the buyer pays off the debt to the bank and hands over the remaining funds to the seller. It is best to use this method if you plan to buy a car from good friends or a relative.
- Change of owner. This procedure is safer. It involves conducting a banking operation in which the owner of the car changes, who will have to assume all debt obligations. In this case, the difference between the total debt and the price of the car can be immediately handed over to the seller.
Selling a credit car if the title is in the bank is essentially no different from selling if you have the passport in hand.
How to sell a car on credit: legal ways
Today, a credit car is no longer a problem. Many citizens use the services of banks, since a loan makes it possible to feel comfortable and acquire various property, even in the absence of the required amount. That is why many are faced with the need to sell credit machines. And this can be done in two ways.
Selling through a bank
You cannot try to sell the collateral on your own. Banking organizations consider such actions as fraud, so you need to act through the lender.
You can sell a car on credit through a bank in different ways:
- Taking out a new loan. With its help, you can cover your existing car debt. A new loan can also be collateralized (the collateral property changes) or consumer without collateral.
- Changing the form of payment. The bank may increase the loan terms or reduce the monthly payment if the client is experiencing temporary financial difficulties.
- Auction. The car can be put up for auction, but if the proceeds are not enough to pay off the debt, you will have to cover it from your own pocket.
- Re-issuance of a loan. The buyer simply becomes a client of the bank and takes responsibility for paying off the debt, handing over the difference to the seller.
Early repayment of debt
It is very easy to sell a credit car if you first pay off the existing debt. But for this you will have to get money from somewhere. You can get them:
- By taking out a consumer loan from another banking organization. You just need to choose a program with the most favorable conditions.
- Change of owner. Independent search for a buyer who will agree to become the owner of the car, having previously paid the debt to the bank. But finding someone willing to undergo such a procedure is not easy.
Responsibility for illegal sale
Today you can sell a car on a title loan in hand, without the participation of a bank, but selling collateral is a complex task that can lead to the most unfavorable consequences. There are dubious sales options, even if they do not have a title. For example, they can obtain a duplicate passport from the traffic police or sell the property without notifying the buyer that the car is a credit car.
Such actions are classified as a serious violation, which can be punishable under articles for fraud, illegal enrichment or misuse of other people's funds. All this can lead to imprisonment, so it is strongly not recommended to take risks.
Help from loan specialists
To sell a credit car with or without a title in hand, it is recommended to seek help from experienced credit specialists. Their professional knowledge will help you act correctly and achieve a solution to the existing problem with minimal difficulties, time and financial costs.
Selling a credit car if the title is in hand or at the bank is possible in several legal ways. Regardless of the presence or absence of documents, the process is governed by certain rules and has many formalities. Ignoring the procedure for conducting a transaction may lead to the citizen being held accountable for the illegal sale of a car.
A vehicle passport (PTS) is a document containing data on the technical characteristics of the car, its identification number, as well as information about all owners, manufacturer, registration of the car and other points. It also contains information regarding all manipulations ever carried out with property - sale, replacement of car components and other actions.
As a rule, the PTS is prepared by the manufacturer. Additionally, the traffic police has the right to issue paper in the event of theft or loss of a car, and customs when importing it into the territory of the Russian Federation from another country.
The vehicle's passport is always in the hands of the owner. The exception is when the car was purchased on credit. In such cases, banks most often retain the document until the final payment of the loan amount. In this case, the passport acts as a kind of guarantee for the financial organization, giving confidence that the citizen will indeed make timely deposits of funds.
In addition, storing the title with a lender significantly reduces the risk of fraudulent actions in relation to the car, since without a document the owner does not have the right to sell, exchange, donate, transfer for temporary use or pledge to another person. If necessary, such operations are carried out exclusively under the control of the bank, which guarantees the return of funds within the prescribed period.
The title is confiscated from the citizen immediately after registering the car, approximately within two weeks from the date the loan is issued. During the specified period, the newly-minted owner must carry out all the necessary procedures and transfer the document to the bank for temporary storage.
There are also options when the vehicle passport is not handed over to the financial institution, but remains in the hands of the loan recipient. This is not practiced by all banks and in this case the terms of the agreement are negotiated individually. It is noted that the issuance of such a car loan retains the rights of the bank, similar to transactions with the transfer of a passport for a car, but the interest rates in this case will be much higher.
Reasons for selling a credit car
Cases when the owner of a car, the loan amount for which has not yet been repaid, wants to sell it to another person, happen everywhere. The main reasons may be the following:
- lack of funds to pay loan installments;
- the need to purchase another means of transportation;
- moving abroad.
The list of reasons is not limited to the indicated options and, if necessary, selling a credit car is quite possible. In this case, the transaction is possible both if the owner has the PTS in his hands, and if it is stored in the bank. The main condition here is the mandatory receipt of permission to sell a vehicle and participate in the transaction of a credit institution; otherwise, the actions may be considered illegal, and punitive sanctions may be imposed on the citizen.
Selling a car if the title is in hand
It is much easier to sell a credit car if the owner has his passport in hand than if he does not have one. But before starting the procedure, you will need to study the contract and clarify whether restrictions are imposed on such a transaction.
The sales scheme in this case is quite simple. The buyer pays the entire amount in one lump sum, the former owner pays off the balance of the loan, after which ownership is transferred to the new owner. The main condition here is the presence in the loan agreement of a clause on the possibility of early repayment of the loan.
Despite the transparency of the procedure, it is extremely important to notify the financial institution about the transaction in order to avoid any problems and accusations of fraudulent activities in the future.
Selling a car if the title is in the bank
The procedure for selling a car if the title is stored in a bank is somewhat more complicated than if the passport is in the owner’s hands. There are also much more formalities in the implementation of the process.
First of all, in order to sell a car, if it is on a car loan and the title is held by a financial institution, you should choose the best transaction option for the borrower. And here it is important to remember that it is not recommended to carry out the process without notifying the bank, its consent and control of the procedure. Because this is illegal and may result in criminal liability.
Independent sale
First of all, the method involves an independent search for a buyer. The sale announcement can be placed on various Internet platforms, specialized websites, and the media. In this case, the owner sets the price for the car independently, which is an undeniable advantage of the method, since the amount can be much more profitable than with other options for the procedure.
After a potential buyer has been found, the interested party should notify him that the vehicle was purchased on credit and the title is in storage at the bank. If the acquiring party agrees, further actions include:
- notifying the credit institution about the upcoming car sale transaction and early repayment of the loan, if provided for in the agreement;
- a visit to the bank to carry out the procedure - the buyer deposits the loan balance, withdrawing it from the total cost of the car, or re-registers it in his name, and then the parties sign the relevant papers;
- concluding a purchase and sale agreement and transferring the keys and documents for the car to the new owner;
- contacting the traffic police with a request to deregister the car.
Additionally, you will need to pay a tax contribution and a fee for early repayment of the loan. In addition, there is a risk of refusal by the bank. This is possible when the loan is supposed to be reissued, and the new borrower does not meet any criteria. If the balance is paid immediately, then problems usually do not arise.
Selling through a bank
The method is considered the most common if you need to sell a car without a title. First of all, you need to visit the financial institution that provided the loan and report your intention to sell the car. After the bank agrees to the procedure, the vehicle, keys and documents for it are transferred to the authorized person. Next, the car is put up on a special site or auction and a price is set for it.
Since most banks cooperate with car dealerships to sell used cars, the procedure is unlikely to take much time. The advantage of the method is the speed and release of the borrower from loan obligations in the shortest possible time.
But it should be understood that this method implies a much lower amount of the cost of selling the car than another transaction option. The price is set directly by the banking institution, taking into account its own interests, and it is often 10-15% lower than the market price. In some cases, the cost is generally equated to the loan balance and, as a result, the borrower does not receive any funds. And sometimes the proceeds may not be enough to pay the balance, and the debt will have to be repaid from your own pocket.
Selling a credit car through a car dealership is possible through the trade-in service. The essence of the method is to transfer the vehicle to the selected car dealership and issue a power of attorney for it, allowing the transaction to be carried out. Of course, all actions are carried out with the consent of the creditor and under his control.
After agreeing on the cost of the car with the bank, the salon employees search for a buyer and pay the balance of the loan. After repaying the debt and selling the car, the former borrower is paid the difference, if any, after which all obligations are removed from him.
In this case, the car dealership has a benefit in the form of a certain percentage of the sale of the vehicle, but the price set for it will be much lower than the market value. The advantages for the borrower are the ease of completing the transaction, the speed of receiving funds and repaying the loan.
An additional, but not so popular way is to sell a credit car through an intermediary company. Such institutions fully assume responsibilities for notifying the bank, searching for a car dealership and coordinating all issues with these organizations.
Illegal sales methods
Many owners of credit cars resort to tricks and try to find workarounds in order to sell the property at a greater profit for themselves. The main methods are:
- Submitting an application to the traffic police about the theft of a car in order to obtain a duplicate PTS. Next, the car is sold as part of a standard purchase and sale transaction. In this case, the lender does not even know about the manipulations taking place with the car. Previously, such frauds were not uncommon, but now most banks cooperate with the traffic police and provide them with information about credit vehicles. Therefore, filing a complaint about the theft of such a car is fraught with numerous troubles.
- Selling a car for parts and filing a claim for its theft in order to obtain insurance in the amount of money equal to the cost of the car and paid to the bank by the insurance company.
This kind of manipulation is recognized as fraud and entails punishment in accordance with the Criminal Code of the Russian Federation.
Selling a car purchased on credit is a very real procedure that involves several transaction options. The main point is the mandatory notification of the lender of the intention to sell the car - only if this condition is met, the process will take place legally and will be successfully completed.
