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The starting point: You are happy about your new car, which you were able to buy thanks to a loan. The payment of the financing installments was initially no problem. But then there will be changes in your life that you did not take into account when financing the car. You may only get short-time work benefits, or you will lose your job completely, new blood has announced itself or other reasons force you to reorient yourself financially and thus to the following question. Vehicle sale despite running credit?
Selling with credit?
The answer to the question of whether the sale is also possible with ongoing financing is "ja"Even if it's not ideal, of course. Therefore, you should heed a few points to bring the sale to a good conclusion. In any case, open communication is required so that everyone involved has the same level of information and you are aware of how to proceed correctly. It must first be clarified under which conditions the sale of the vehicle is possible, i.e. which conditions from the loan agreement are relevant to their case.
Loan with earmarking!
Have you concluded the loan agreement for a specific purpose, ie expressly for the purchase of a car (vehicle loan), then the corresponding earmarking follows with regard to the issuance of the loan amount. The lending bank remains the owner of the car they have bought until the loan (principal and interest) paid back in full became. Until that time, the Bank retains – as a kind of pledge – the vehicle registration document (Part II of the registration certificate). Hence the need to tell your lender about it to notifythat you want to sell your vehicle, because without the vehicle registration document - who is at the bank - cannot be sold. Neither the Away- nor the Sign in at the admissions office is possible. Only with one Lender Approval so the sale is feasible for you.
Loan without earmarking!
If you - other than in the case described above - no earmarking have agreed for the loan (cash loan), the car sale can be carried out much more easily. In this case, the vehicle registration document remains not at the bank. Possession of the letter officially documents that you are the owner of the vehicle. Coming back to the earmarked loan, the sale of which is rather complicated. We recommend that you proceed as follows in order:
- Notify the lender of the desired sale
Without the consent of the bank (owner of the vehicle) for sale, any thought of sale is pointless. 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“ Conditions of sale or one Deadline, by when the car has to be sold? Of particular importance is the question of how outstanding loan amount should be proceeded. The bank may insist that you pay the outstanding balance pay before the sale. And that a so-called prepayment penalty charged is not uncommon. This is an amount that compensates the bank for the loss of interest that it would have received by the regular end of the contract. However, it is also possible for your bank to allow the buyer of your car to take over the loan agreement and the remaining debt.
- Valuation for your vehicle on the car market
Find out about the current value of your car, so that you know what purchase price you can estimate. You have various options for this, such as the use of (partially) free internet portals for evaluation. However, one is undoubtedly more meaningful professional appraisal, which you can have created in a workshop, but which is also significantly more expensive than the Internet rating. In any case, always contribute with your information to a realistic evaluation, also provide information about important facts such as the fact that your car is a "Accident vehicle' (if it is the case). Once the current market value has been determined, think about the purchase price for which you want to offer your car and set the price a little above the outstanding loan amount on. Ideally, you can not only settle your remaining debt after the sale, but also have a small profit.
- Advertisement with significance
Be open and honest! Point out from the beginning that for the vehicle offered funding is still pending and against this background you do not have the vehicle registration document (registration certificate part II). If interest in buying is then expressed, you can assume 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 (inside/outside, damage, milage, 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. Either they can loan redemption by you, whereupon the bank gives you the vehicle registration document, which you then hand over to your sales contract partner, or the 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 regulated in advance. It must also be agreed with the buyer whether you want to buy the car sign out or whether the vehicle with the official license plate is taken over. In connection with the sale of the vehicle, the question always arises as to whether the car privately or to the Retail is to be sold. Both options have advantages and disadvantages:
Private sale
- Advantages -> comparatively numerous interested parties, a higher purchase price can probably be achieved
- Disadvantages -> the ongoing financing can tend to "deter" private individuals, you have to take care of an advertisement, sales process with comparatively high (time) expenditure
Sale to trade
- Advantages -> the car can be traded in, there is no need to look for a buyer, and the sales process is comparatively easy and quick
- Disadvantages -> the price achieved should be significantly lower than with a private sale
Are you planning to buy a new car and are you therefore looking for financing? Or should the modified baby and its attachments simply have the best possible insurance? Then ours Credit, financing, leasing, insurance & Co. categories exactly the right place to go for information. And also cheap financing for Accessory parts is there. Is the new one forged wheel, the planned Airride air suspension or the one you want foiling too expensive? Then a little one might help Financing in the process of implementing the modification on the vehicle. And also the topic Leasing or the vehicle sales are not neglected here. Just click through the posts and get the answer to your questions.
Of course, that wasn't the end of it!
tuningblog has countless posts on the topic Credit, financing, leasing, insurance & Co. in stock. Do you want to see them all? Just click HERE and look around. The following is an excerpt from the last contributions from this category:
