Overhaulin'

What happens if I sell car or other product before repaying loan?

So I had 5 year loan to pay off a car or and then sell the car after 3/4 years what happens to the remaining loan? Can the remaining loan be paid in one go from the the sale of the car or just keep repaying the remaining 1-2 years? Is it the same for morgages?

Public Comments

1. You are still responsible for paying the loan. If its a house for example, the money you get from selling the house, will pay off the loan for it, but then you'd probably have to take out another loan for the new house. Same deal with cars.
2. You had no right to sell a car that is still under a finance agreement
3. not at all, you can pay the remaining loan off in one go. Contact the company/bank and ask them for an earlysettlement figure and then tell them your going to be paying it off , and what do u have to do . They will help you
4. Depends on what kind of loan you got. Did you get a personal loan or car finance? if you got a personal loan i.e. from bank etc then you are free to do with the car as you see fit and you are able to sell it and then pay the loan off etc. if it is car finance then until the car finance is paid the car still legally belongs to the finance company and finance must be settled prior to the sale of the car. Some car garages offer to pay the finance on the car when you buy a new one. So if it is a personal loan then you can sell the car and continue making the payments or pay the loan off. A mortgage is different. A mortgage is a loan on a property and the property remains in effect the property of the mortgage company until your "loan" is paid. If you sold your house then you would need to pay the mortgage before anything else i.e. mortgage for £80,000 house sells for £100,000 then you get £20,000.
5. You need to phone the loan company and ask for a 'settlement figure'. This is essentially the balance of the loan. Sometimes, (but not always) the company will deduct interest, so it could be less than the outstanding balance. You then pay the settlement figure. Make sure you keep hold of the notice from the loan company telling you that the finance is finished - buyers will want to see it to prove there's no outstanding finance.
6. You`ll be OK as long as you either pay it off , or keep up the payments . Miss a payment or two and they`ll want to repossess the car ! They`ll find out who has it through the vehicle registration , and repossess it . YOU will be charged with either fraud , theft , or both ! YOU will be held responsible for the remaining amount owing plus repossession charges , storage charges , court fees/costs , fines , etc You might even end up with a criminal record ! I`m sure you`re aware of how THAT can adversely affect your future !
7. You can't sell the car (transfer the title) without paying off the loan. Same thing goes for houses.
8. I am Dana Wiltord from scotland, I was previldge to come in contact with this lender named Foley who assisted me with a loan of 1500k USd. it wasnt easy getting a reputable loan company but with the guidance of God and sincere heart i was able to get intouch with him through a friend here. his email is nolanforley@gmail.com he is as good as done when you contact him for a loan.As the adage goes, a word is enoughfor the wise. dont wast youtr time contacting fraudsters in you are in dire need of cash. I have my own fair share of it and know what it means deep in my skin.
9. Contact the loan companies concerned.
10. Since this a private contract between you and you financer, it depends upon the terms and conditions. If there is condition in your loan agreement that you cant transfer the asset without your financer`s permission then you have to seek the same. Alternatively you may repay the entire or convince financer to pay entire amount out the sales proceeds which you will realise from the purchaser if you wish so. Further if you want to change your vehicle then you can give new vehicle in the place of old one and take permission to sell. Please note that generally there is clause in finance agreement to this effect and you have to comply with that otherwise brech of contract may lead to compensate/pay damages to financer. You have to take your financer into confidence.