Selling the car that is on bank loan can be problematic until you have completely paid of the loan as the car remains under the ownership of the bank until the loan is paid off.
In some situations, this means that the sale procedure won’t be completed until you clear loan payments but still there can be different ways you can sale your car with bank loan:
Loan if Paid off
In the first situation, if your car bank loan has been paid, you need to check in your bank that they should have informed the RTA about the loan which you have cleared. In such case, the bank should release a letter that your loan is cleared so that you can make the sale easily.
Loan if still Paying off
If you want to sale the car that is still on car mortgage, first thing is to try clearing the loan and make sure that all the records are cleared. However if you are unable to clear the loan and want to sell car loan, you can try any of the following procedures:
1. Sale the car through bank loan
First way you can try selling your car fast is through finding a buyer who would buy the car through the same bank under which it is loaned. This way you can have a finance buyer who would buy your car by paying Dubai car loan directly from the bank.
However if you are looking for a finance buyer, you first have to make sure that your bank allows such loan transfers. Some of the banks don’t allow such transfers. The buyer would then need to apply and get the application approved. The bank will issue the valuation certificate to show the actual value of car which will make the loan amount clear. The loan paid by the buyer will further be settled in the previous balance of your loan.
2. Look for the buyer who will pay off the loan in form of cash
This is the second option for you to try to clear car finance. Look for the buyer who is willing to pay the cash amount instead of paying it through the bank. Make sure that there remains trust in you and the buyer that you would transfer the ownership immediately after the loan pays off. First of all you would need to enquire the remaining amount left from the bank. Sign an agreement with the buyer that once he pays off the enbd car loan, you would transfer the car’s ownership to him.
It’s preferable to meet the buyer in bank with money and pay off the car cash rather than taking the money at any other place because it may contain risk. Make sure that the buyer makes payment in form of cash and once you clear it; hand over the car’s ownership to the buyer. At this step, your buyer can take the possession of the car and take it back home. However there will be some requirements to be fulfilled later on by the bank.
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