Car owners are not encouraged to sell their car when the finance is not paid off and there are many consequences which you wouldn’t want to experience. Don’t blame the bank or finance companies when offering to sell your car.
If someone purchases your car and all the necessary paperwork has been completed including transferring of registration, The owners and you seem to be happy but have you forgotten that you don’t own the car until the finance is paid off.
Don’t you remember when signing the agreement with the bank or finance company?
The major solution when selling your car is to pay the finance amount straight away it saves time and you avoid the hassle of being questioned. Almost every agreement of a car loan states your not allowed to sell before paying off the finance basically the car belongs to the bank until all payments are made. Lets say for instance, if you sell your car the lender will come after you regardless of who is in the possession of the vehicle. The bank will take away the vehicle and your left to deal with the person you sold the vehicle. The bank have the authority to take over the vehicle from anyone you sold it to and sell it back to pay back your debt.
The bank will come after you and take the car but even though your credit records will look ugly and no bank will give you a loan in future. No one likes to have a bad credit it decreases the chances of buying a house in future, No bank will have trust and you might think gosh I wish I paid the loan and purchased a house now.
To avoid the hassle the best would be to pay out the finance before selling the car and you sell your car for cash to companies such as Trade Cars For Cash Sydney.