Selling a car with loan still outstanding
Discussion
How do. Asking this on behalf of a friend, who bought a car with a four-year car loan from the bank and is now looking to sell it. She's only paid off 18 months of the loan.
Conflicting advice received - some say it's not possible to sell until it's paid off, others say it is. Anyone got experience in this area?
Conflicting advice received - some say it's not possible to sell until it's paid off, others say it is. Anyone got experience in this area?
If I remember correctly - they will go to the bank where the finance is being held and get a final settlement statement - There's bound to be an early redemption fee to be included.
They then sell the car but the buyer pays the bank (as they own the car) and then the bank gives you back a cheque for the balance less the outstanding finance figure and any fees. If the car is worth less than the outstanding finahnce then they will have to add to get the clearence letter.
Been a while since I sold one with finance so please forgive me if that is wrong.
All I remember was going nuts at how time consuming and bloody annoying the whole process was. In true usual fashion, when ever you think you have every document under the sun and done everything possible, they will remember to tell you that yoiu need something else which requires another 5 trips to somewhere where there is no parking and a faulty ticket queueing system that makes you wait all day.
They then sell the car but the buyer pays the bank (as they own the car) and then the bank gives you back a cheque for the balance less the outstanding finance figure and any fees. If the car is worth less than the outstanding finahnce then they will have to add to get the clearence letter.
Been a while since I sold one with finance so please forgive me if that is wrong.
All I remember was going nuts at how time consuming and bloody annoying the whole process was. In true usual fashion, when ever you think you have every document under the sun and done everything possible, they will remember to tell you that yoiu need something else which requires another 5 trips to somewhere where there is no parking and a faulty ticket queueing system that makes you wait all day.
Edited by Asterix on Wednesday 24th February 12:45
Have been through this a couple of times.
The finance must be settled at the bank before the transfer can take place. This way the bank will authorise for the licensing agency system to show that there is no mortgage on the car and issue a letter to the seller. The car cannot be transfered without this - a pain but it removes the HPI type UK risk.
Unfortunately it means that you have to buddy up with your seller/buyer for an hour or so and make a trip to the bank before you go to Tasjeel and transfer the car. I got the chap to type out a receipt on letter headed paper and sign it to show that I had given the cash in full expectation of receiving the vehicle - not sure how much that would of helped but it calmed my nerves about kicking me out of his car at the lights!
Slightly annoying if you're buying an AD registered car and you travel all the way to AD with a crazy slow driving (1ookmh!)Scotsman selling his Z4 the night before you fly home to get married only to find that the car loans bit of the bank closes at 5pm....but I won't go into that.
I get personal loans rather than car loans now as it makes it much easier when it comes to sales time and my bank don't seem to care much either way.
The finance must be settled at the bank before the transfer can take place. This way the bank will authorise for the licensing agency system to show that there is no mortgage on the car and issue a letter to the seller. The car cannot be transfered without this - a pain but it removes the HPI type UK risk.
Unfortunately it means that you have to buddy up with your seller/buyer for an hour or so and make a trip to the bank before you go to Tasjeel and transfer the car. I got the chap to type out a receipt on letter headed paper and sign it to show that I had given the cash in full expectation of receiving the vehicle - not sure how much that would of helped but it calmed my nerves about kicking me out of his car at the lights!
Slightly annoying if you're buying an AD registered car and you travel all the way to AD with a crazy slow driving (1ookmh!)Scotsman selling his Z4 the night before you fly home to get married only to find that the car loans bit of the bank closes at 5pm....but I won't go into that.
I get personal loans rather than car loans now as it makes it much easier when it comes to sales time and my bank don't seem to care much either way.
Edited by Hitch78 on Wednesday 24th February 12:52
Asterix said:
All I remember was going nuts at how time consuming and bloody annoying the whole process was. In true usual fashion, when ever you think you have every document under the sun and done everything possible, they will remember to tell you that yoiu need something else which requires another 5 trips to somewhere where there is no parking and a faulty ticket queueing system that makes you wait all day.
I feel your pain.....absolutely EVERYTHING is like this.Edited by Asterix on Wednesday 24th February 12:45
Some banks take 3 - 4 working days to issue you with a letter saying that the car loan has been paid off, as such, if the new owner has paid off the loan on your behalf, then he will be sitting there fretting himself that nothing will happen to the car before you get the clearance letter and get the car transferred into his name
I had outstanding finance with Mashreqbank. Paid it off at SZR branch and they said my loan was with the Al Aweer branch (god knows why as I arranged everything at the Al Tayer showroom). Took 3 days for the no objection cert to come through. Buyer was good enough to wait as I used some of his funds. The fact that he was with me when I prepaid the loan and could verify where I worked seemed to reassure him.
Sister just bought a 1 year old SLK. Seller had it financed through ADIB. Sister and seller rock up to an ADIB branch, seller paid off the loan with sister's cash and a NOL was generated at the branch, signed and stamped and deal was done. Next stop RTA to transfer ownership. That was far more efficient...
Sister just bought a 1 year old SLK. Seller had it financed through ADIB. Sister and seller rock up to an ADIB branch, seller paid off the loan with sister's cash and a NOL was generated at the branch, signed and stamped and deal was done. Next stop RTA to transfer ownership. That was far more efficient...
Gassing Station | Middle East | Top of Page | What's New | My Stuff