Selling Car with Finance

[milkycheese]

Hi TV People,

Due to moving to Malaysia and not being able to bring my car from Thailand with finance on it, I want to sell.

Anyone know the rules on this and is it better to pay it off 100% then sell or cut my loses and sell now. 80% already paid. Anyone have an issue like this before?

Thanks for any advice

[Don Mega]

If the buyer has cash it is easy to go to the finance company and have the buyer pay the finance out.. Book may take a week or 2 to arrive and it will be in your name. then go to LTD and do the transfer, or sign the transfer docs and power of attorney (along with photocopies of your passport/visa/etc etc) and the buyer can do it all.

[LukKrueng]

Basically you can't sell the ongoing finance. The car is now registered to the finance institution, not to your name. Once you have a buyer, you go to the finance company to pay off the balance of your loan, then get the car's ownership transferred - I did it before and can't really remember if it was first transferred to my name and then to the buyer, or directly to the buyer.

If the buyer wants to finance the car as well he/she has to apply for new finance with no regard whatsoever to the finance you are now holding.

If you try to sell the car with the current finance - as in you get some cash and the the buyer keeps paying the monthly installment - it is wrong procedure and in case the buyer stops paying you are still responsible for the balance of the debt. If he/she does pay to the end - the ownership of the car will be transferred to the original buyer at the end of the finance payments.

[technologybytes]

If the buyer has cash it is easy to go to the finance company and have the buyer pay the finance out.. Book may take a week or 2 to arrive and it will be in your name. then go to LTD and do the transfer, or sign the transfer docs and power of attorney (along with photocopies of your passport/visa/etc etc) and the buyer can do it all.

Everything you say is technically correct. However as a cash buyer of a car I would never hand over cash without getting possession of the blue book, and I suspect that a lot of buyers would also feel this way.

When someone wants to sell a car with finance outstanding they are basically not the owner and have no right to sell the car.

Best option, pay off the finance and then sell the car when its your car to sell.

Edited August 8, 2015 by technologybytes

[Don Mega]

If the buyer has cash it is easy to go to the finance company and have the buyer pay the finance out.. Book may take a week or 2 to arrive and it will be in your name. then go to LTD and do the transfer, or sign the transfer docs and power of attorney (along with photocopies of your passport/visa/etc etc) and the buyer can do it all.

Everything you say is technically correct. However as a cash buyer of a car I would never hand over cash without getting possession of the blue book, and I suspect that a lot of buyers would also feel this way.

When someone wants to sell a car with finance outstanding they are basically not the owner and have no right to sell the car.

Best option, pay of the finance and then sell the car when its your car to sell.

CATCH 22 then if the seller does not have the cash to clear the finance.