Can you sell a car while it's still under finance?

[Darko]

A bit of a strange question here. Hope you guys can understand what I'm trying to say.

Situation:

I am looking at immigrating. Everything else is taken care of except for my car which is still under finance. Unfortunately the finance is only about a year and a bit old, so I have only managed to dent a little of the interest. I can't sell it for settlement value, and the difference between trade and settlement is about R60k.

What I would like to know is:

Can I sell the car (transfer ownership, etc) while it is still under finance? Take the money from the sale, put it in the finance as a lump sum, then carry on paying off the difference (R60k) from overseas until its paid off?

 

[Alton Turner Blackwood]

As far as I know selling the car in that situation would be illegal.

Besides, how do you suppose the buyer is going to get the registration documents from the bank?

 

[Electric]

I don't think you can sell it and then continue paying installments.
You sell it for the full capital balance and pay it off one time.
The new owner is responsible for taking out any finance required to pay it up.

 

[Hitchcock]

Correct.

If the bank finds that you have 'sold' the vehicle, you will be facing criminal charges.

Besides, you will not be able to change ownership. The bank is registered as the Titleholder on the registration and only they can do the changes.

Either you do a cash deal, settle the vehicle with the bank and pay the settlement penalty fees - or get the buyer to apply for finance on the vehicle. They will take care of the settlement and the fees will be added to the buyer's account.

 

[HapticSimian]

Simply put, until your existing finance contract is paid up, the car isn't yours to sell.

 

[hellfire]

A bit of a strange question here. Hope you guys can understand what I'm trying to say.

Situation:

I am looking at immigrating. Everything else is taken care of except for my car which is still under finance. Unfortunately the finance is only about a year and a bit old, so I have only managed to dent a little of the interest. I can't sell it for settlement value, and the difference between trade and settlement is about R60k.

What I would like to know is:

Can I sell the car (transfer ownership, etc) while it is still under finance? Take the money from the sale, put it in the finance as a lump sum, then carry on paying off the difference (R60k) from overseas until its paid off?

You can sell it, but the bank will want all its money.
You will have to give them the sale price, take out another loan for the difference, and settle the vehicle finance loan.

EDIT: how are you in the situation that you still owe so much more than the car is worth?

 

[xrapidx]

You won't be able to transfer it to the buyers name...

 

[Sinbad]

You can sell it, but the bank will want all its money.
You will have to give them the sale price, take out another loan for the difference, and settle the vehicle finance loan.

EDIT: how are you in the situation that you still owe so much more than the car is worth?

Any time you buy a new car without a massive deposit you will be in that situation for years.

 

[hellfire]

Any time you buy a new car without a massive deposit you will be in that situation for years.

Months, maybe. Unless you buy with no deposit over a ridiculously long period (72 months or more)

 

[Sinbad]

Months, maybe. Unless you buy with no deposit over a ridiculously long period (72 months or more)

30 percent depreciation when you drive it off the showroom floor. Takes a couple of years to pay off 30 percent of the capital. During which time it depreciates more.

 

[FAQIR]

dont think you can sell it.

If you want to sell, then pm further details I might be interested in buying it as a dealer

 

[HapticSimian]

Months, maybe. Unless you buy with no deposit over a ridiculously long period (72 months or more)

From what I see, that's how most cars are bought. Toss in a 30% balloon on a good number of 'em, and it's quickly clear why trade-in isn't viable for most until after 3 - 4 years.

 

[Darko]

You can sell it, but the bank will want all its money.
You will have to give them the sale price, take out another loan for the difference, and settle the vehicle finance loan.

EDIT: how are you in the situation that you still owe so much more than the car is worth?

Months, maybe. Unless you buy with no deposit over a ridiculously long period (72 months or more)

Bought the car just over a year ago. Normal finance terms (54 months, 10% deposit, no balloon).

I've only had it for a year. So I would assume it natural that I would still owe a bit over trade?

Thanks guys. This is what I wanted to know.

Just trying to figure things out in a best case scenario.

 

[falcon786]

Bought the car just over a year ago. Normal finance terms (54 months, 10% deposit, no balloon).

I've only had it for a year. So I would assume it natural that I would still owe a bit over trade?

Thanks guys. This is what I wanted to know.

Just trying to figure things out in a best case scenario.

What car is it model mileage etc?And how much is your settlement currently?

 

[bigmak]

Ask the bank for the full settlement figure as of this day, and figure things out from that point.
Banks just care about the money anyways.. the 'penalty' for early settlement is really not that much.. i.o.w. settling early always works out cheaper.

 

[Pitbull]

Technically you can "rent" him the car for the installment. Once settled you give him the papers to the vehicle. There is a loophole regarding the purchase of the vehicle via installments. Draft up a contract stating he will be renting the vehicle from you for X amount per month. He pays you, you pay the bank. Once the whole thing is settled you sort out the paper work with the buyer.

 

[HapticSimian]

Ask the bank for the full settlement figure as of this day, and figure things out from that point.
Banks just care about the money anyways.. the 'penalty' for early settlement is really not that much.. i.o.w. settling early always works out cheaper.

For agreements sub R250k there is no penalty for early settlement, and for those over a maximum of 3 months' interest can be charged. The latter falls away, provided you give 3 months' notice.

 

[Darko]

What car is it model mileage etc?And how much is your settlement currently?

2011 A3 Sportback 1.4T.

43000km.

S-tronic, Leather, DRL + Xenon, Bluetooth, 17" wheels, all other ambition / attraction options (fogs, armrest etc)

Full motorplan until March 2016.

Settlement is R260k. Trade is about R190k according to what the Audi dealer I had it serviced at wanted to offer me for it.

 

[Darko]

Ask the bank for the full settlement figure as of this day, and figure things out from that point.
Banks just care about the money anyways.. the 'penalty' for early settlement is really not that much.. i.o.w. settling early always works out cheaper.

Not terribly worried about settlement penalty.

 

[TehStranger]

2011 A3 Sportback 1.4T.

43000km.

S-tronic, Leather, DRL + Xenon, Bluetooth, 17" wheels, all other ambition / attraction options (fogs, armrest etc)

Full motorplan until March 2016.

Settlement is R260k. Trade is about R190k according to what the Audi dealer I had it serviced at wanted to offer me for it.

Take out a personal loan or use your credit card and pay the R60,000 odd thousand into the car loan first off, then settle the car with the sale price. Pay off the loan/credit card overseas.

Problem solved with the least amount of hassle.