Selling A Car Under Finance Overview
There was a time when car owners in India considered their tires as treasure and they would last for a long time. It also helps that it's hard to make extra money, not to mention the options are very limited. No more. The opening of the economy created a new phase for the ruling generation. With the increase in car financing in India, the supply of new cars in the market is also increasing.
Today, there is a wide variety of cars at every price point one can think of, from small budget tiers to super sedans and luxury SUVs with price tags, all available here. Also, disposable income has increased as car buyers become more conscious. Today, it's not uncommon to encounter a car owner who sells a car with finance because he loves the latest model in the showroom.
In general, how car financing works in India, there are still some details that need to be known when selling a car with a paid loan. Because in addition to car buyers and sellers, there are also banks/financial institutions that take loans to buy a car in the first place.
The easiest way to start is to check the logs/cards to see if the assumptions still hold for the car. The next step is to contact the lender to find out how much you owe on the loan. Because the responsibility for the loan rests with the car owner, the ownership of the car passes from the seller to the buyer. This way, one always knows the amount owed by the lender.
Loan cancellation is another popular option when selling a car with financing. In these cases, sellers sometimes use the sale process to close many loans before repayments are due. Some buyers pay the outstanding loan to the lender before paying the balance to the seller.
So, the next time you're considering buying a car with an outstanding loan, rest assured it's not as impossible as it seems.