After buying a new car, some people don't like it and think of selling it. But if the car is taken on loan, it is very difficult to sell it. If you want to sell or buy a car on a loan, it's a little tricky, but not impossible. Banks give you some options in such a situation. But many people are not aware of it. Let's know how to sell a loan car
Right person's choice required: If the loan is on the car, you have a few options to transfer a car loan, but it's not an easy process to show up, sign the money, sell and RC transfer documents and sell the car. You have to choose the right person to transfer a car loan. Also, car registration and insurance have to be transferred in the name of a new buyer.
Loan transfers are expensive: The seller has to bear expenses such as loan transfer, bank processing fees, car registration and car insurance transfer. With all these expenses, the car buyer or seller may ask them to share the expenses to make the loan transfer process expensive for the buyer.
Do not forget to transfer RC: With loan transfer you need to get the RC transfer done in the buyer's name. You can understand this process by visiting the RTO office. You may have to pay some charges for the car transfer process in RTO. The 'Registration Certificate' is issued in the name of the new owner as soon as the bank completes the remaining documentary procedures after examining the buyer's ability to repay the loan.
Keep in mind the motor insurance policy ensure that the RC transfer as well as the motor insurance policy are transferred in the name of the new buyer. so that you don't have to pay further insurance premium installments. Once the car registration and loan transfer, provide the insurance company with relevant documents such as new loan documents, registration certificates, etc. The insurance will be transferred in the name of the new buyer as soon as the approval is received from the insurance company.
If you are buying a used car, the purchaser of the old car will also have to apply for a used car loan. However, banks charge higher interest on old car loans than the new car. Most banks offer used car loans only for five years, although it depends on how old the car is. If the car is too old, the bank can lend for three to four years. The buyer can also take a loan from the existing bank, or choose a new bank according to his/her choice.
Details of existing loan agreement Check: Check your car's loan document thoroughly before transferring the loan to another person. The loan papers only state whether you can transfer the loan to another person. If you do not find this option on paper, contact the lending bank to see if this option is available to you, as well as the terms and conditions.
Check buyer's credit history: According to Ansul Anand, CEO of Lisi Mantra, first check the income of the person to sell the car and check the credit history of the person who is eligible for the loan. It is important that he has a regular income and a good credit history as well as necessary documents like income proof, residence proof, etc. Ansul says the bank will evaluate the credit of the person who bought the car from you and sanctions the loan only after he is satisfied with his repayment capacity and credit history. Also, the purchaser may have to undergo KYC as per the requirement of the bank.
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