Can we sell our used car if we're not done paying the installments?

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If we want to sell a used car but there are still installments to be paid, can we still sell the vehicle?

The pandemic has taken a drastic toll on the economy. As a consequence, some car owners can’t continue to pay their installments and are unwilling to sell the car to get the money. BUT can we sell a car that is still not fully paid for? Are there any liabilities if we do so?

Not fully paid = No full ownership of the car

The company which we took a loan from is the real car owner at this time.

(Photo Credit: Freepik)

Based on law, we really can’t sell that car because as we mentioned above we aren’t the real owner of the car (only have the right to drive). So, you can’t do anything about selling arbitrarily. You must have permission from the finance company and inform the buyer about this situation.

However, if you follow the right processes, there might be a way to sell. Here's how!

(Photo Credit: Freepik)

1. If you can negotiate and close the deal with a buyer, you can pay the rest of the installments when you've received the money. This will allow for a transfer of ownership easily, and negotiate with the finance company to reduce the interest. (*Conditions are as specified by the company)

Moreover, when you pay your installments, the finance company will give your car registration book back and transfer the car ownership to you. Thereafter, you can transfer car ownership to a buyer immediately.

2. In case your buyer wants to continue your installments, please contact a finance company first for transferring car ownership for refinancing. In addition, you can negotiate with your buyer about paying the difference you paid before or as you’ve known as “sell down payment.”

These are the ways you can sell your used car with no finished payment and no illegal. If you have no idea where to sell your used car, seek out Motorist! A non-obligatory service that gets you the highest price within 24 hours.

Read more: How To Get the Best Price For Your Used Vehicle

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