Buying a credit car if the title is from the bank

How to sell a car on credit?

Selling a car for which the loan has not yet been paid... Until recently, this seemed impossible. But modern borrowers have a chance to sell a collateralized vehicle on absolutely legal grounds. How to do it? This will be discussed further.

What is an encumbrance and how does it threaten the borrower?

When applying for a car loan, the actual owner of the car has limited rights to it - the vehicle is encumbered. While the car is pledged, the bank can be sure that it is insured against non-payment of the loan. In case of regular delays, the financial institution seizes the vehicle from the owner and sells it at auction, thereby covering its costs.

While the car is pledged, the borrower cannot:

Tuning the car
Sell vehicle
Change factory body color
Make design changes

Why sell a car on credit: reasons and situations

A car loan is usually taken out for a period of 3 to 5 years. During this time, the borrower’s life may change radically and the car, for which a considerable payment must be made monthly, will turn into a real problem, the solution to which is seen in sale.

The reasons that force the owner of a credit vehicle to think about finding a buyer can be fundamentally different.:

Deterioration of financial situation - regular payments become an unbearable burden, and the situation threatens to become overdue in the near future
Improving financial condition - there is an opportunity to purchase a more expensive car, but there is not enough money for a one-time payment
A profitable deal - entrepreneurs are familiar with the situation when a profitable deal suddenly turns up, but there are no free funds for it
Other circumstances - payment of debt/treatment or education of a child

Whatever the situation brings a person to the idea of selling a car that is pledged, this procedure will raise a lot of questions in him.

Main nuances

If the situation forces you to think about selling a car that is pledged to the bank, then you need to start resolving the issue by studying the loan agreement. It contains all the information needed for the first step:

Loan terms
PTS location
Possibility of withdrawing a car from collateral and so on

It is also worth analyzing the payment schedule - perhaps most of the loan has already been paid off and the remaining debt no longer looks as impressive as at the very beginning.

Depending on what is written in the loan agreement, an algorithm of actions for the car owner will be built (this will be discussed a little later). But in any case, you need to remember that:

The bank is always ready to discuss with the client the nuances of loan repayment and offer assistance in case of difficulties - it is not profitable for financial institutions to take away a borrower’s car and sell it at auction, so the process of selling a car should begin with a visit to the bank’s office
It is illegal to look for a buyer without the bank’s knowledge - such actions are classified as fraud and can even threaten the borrower with a real prison sentence

Financial institutions often include a clause in the agreement with the client regarding the possible re-issuance of the loan. It is a safety net for the bank and the borrower himself, since over the years of payments his financial situation may change, and along with it there will be an urgent need to sell the car. In this case, banks act as follows:

Remove the encumbrance from the vehicle
Renewal of the contract
Accept other client property as collateral

PTS in hand: procedure

The PTS is the main document for the vehicle. It indicates the owner's details and technical characteristics of the car. Without a vehicle title, it is impossible to carry out any legal actions with the vehicle . Banks are well aware of this and often seize the document for safekeeping after the loan is issued. But some financial institutions do not practice such a security measure and leave the PTS in the hands of the borrower.

In this case, he creates the illusion of being able to sell the car without the participation of the bank. But such actions are illegal and can lead to serious consequences, so the borrower must first contact the financial institution:

Write a statement about the need to sell the car, indicating the reasons
Bring the paper to the bank and discuss the problem with the manager

If the financial institution approves the future sale procedure, the applicant will be offered possible options:

Search for a buyer by the borrower himself
On-lending
Sale through a credit institution
Auction
Car dealership services and more

All stages of the transaction will be controlled by the bank. The borrower will only need to find a buyer if he resorts to the first of the above methods.

When determining the price, you need to take into account the mileage of the vehicle. This affects its cost, which will differ less from the original loan amount.

PTS in the bank: procedure

In 90% of cases of applying for a car loan, financial organizations take the vehicle title for storage. Therefore, without informing the bank of its intentions, the borrower will not be able to carry out the sale. Having decided to make a deal, the car owner must:

Write an application addressed to the bank director
State in paper your intentions and circumstances that prompted the sale.
Bring the application to the office of the credit institution
Wait for an answer

If approval is received, the manager will offer the client several of the most common sales options. But in practice, they are difficult to implement, since few potential buyers will want to risk their money. If there are such people, then the deal can be concluded in 2 ways.

By proxy

The seller and buyer go to the notary's office and draw up a document confirming their intentions. Next, the buyer closes the seller’s loan agreement and gives the difference to the former borrower. After receiving the PTS, standard registration of the car occurs through the traffic police.

Legally, this method is quite unreliable and is not suitable for strangers. Relatives and friends resort to him, confident in each other’s honesty.

Change of owner

This option is more reliable for both parties to the transaction, since the potential buyer renews the loan agreement in his name, accepting monthly payment obligations and receiving the car. The buyer pays the difference to the seller personally immediately after the agreement is renewed.

Some banks do not consider the listed options, but offer to sell the car through a dealership. But in this case, the seller bears additional costs in the form of paying a commission to the car dealership. Sometimes it reaches 10% of the cost of the vehicle.

Implementation of a duplicate PTS

At first glance, this option seems attractive to many car owners. They operate as follows:

Submit an application for the loss of the vehicle passport to the local traffic police department
Wait until the deadline of 10 days has expired
Get your hands on a new PTS
Selling cars on their own

At the same time, the new owner of the car is not informed that his new car is in fact pledged.

Legal methods of selling a car on credit

In order not to worry about problems with the law and to sleep peacefully at night, the owner of the car should use legal methods of selling it. This will solve the existing problem without unpleasant consequences.

Bank services: sales by prior agreement with the banking organization

The financial institution is interested in ensuring that loan repayment issues are resolved as quickly as possible. Therefore, it offers the borrower different ways out of the situation:

Re-registration of collateral - the client can transfer the remaining debt to his other valuable property: an apartment, a country house or a dacha
Auction - putting a car up for auction should quickly solve the problem, but the proceeds from the sale are often not enough to repay the loan due to the obviously undervalued cost of the lot
Re-registration of the contract to another borrower - the sale of the car occurs through a legal change of borrower

If the borrower decides to sell the car due to unaffordable monthly payments, then you can try to negotiate with the bank to extend the term of the contract, which will automatically reduce the payments.

Early repayment of obligations

If the borrower has not made late payments, he can try to refinance at another financial institution. This will allow you to quickly repay the debt to the first creditor and sell the car without any restrictions from the bank.

Some borrowers solve the issue of early repayment a little differently. They independently find a buyer who closes the loan agreement from his own funds. And only then the purchase and sale transaction is drawn up.

Trade-in: implementation of a specialized organization

Some car dealerships specialize in buying back old cars and those vehicles that are pledged to banks. In a simplified form, the procedure looks like this:

The seller brings the car to the dealership for evaluation
Signs the contract
Receives money minus commission

The car dealership independently pays off its client’s debts and subsequently puts the car up for sale again.

But this option does not always satisfy the seller himself, because during the assessment the value of the vehicle is underestimated, and the final amount is quite modest.

Replacement of collateral

This method of selling a car has already been mentioned above. Banks consider this way out of the situation to be the most acceptable and satisfactory for both parties:

The borrower freely sells the car and continues to repay the loan or pays it off completely
The financial institution does not worry about monthly payments from the client, since it has a guarantee in the form of other property

Banks are most willing to replace existing collateral with more expensive property - an apartment or a country house.

Sale with re-issuance of a loan to the future owner

There are many difficulties in this option:

Finding the right buyer
Obtaining permission from the bank
Additional expenses

If, nevertheless, the borrower manages to combine all 3 points in one transaction, then the sale of the vehicle will be carried out by drawing up a loan agreement for another person with the return of the difference between the remaining debt and the declared value of the car.

Sale by agreement with a person who will subsequently repay the loan obligation

This method is suitable for people close or well acquainted, since before registering the car, the buyer will need to transfer funds to pay off the existing loan debt. And only after the encumbrance is lifted, the vehicle can be legally sold.

Any problem with the bank, even such as selling a car as collateral, can be solved. The main thing in these matters is not to hide from a financial institution and not to enter into transactions behind its back. If you contact a credit institution directly, it will offer options for the best way out of the situation for both parties.

What options are there for selling a credit car?

The number of cars purchased on credit increases every year. At the same time, the usual practice in most banks is to take the title of the car as collateral. But not all car enthusiasts, having bought the car they like, are able to pay the required monthly payments on time to the bank that provided the loan.

There are also those who almost immediately after purchase want to exchange their credit car for a more modern one or one that better suits their needs. Is it possible to sell a credit car? What to do if PTS is in the bank? How to sell a credit car without losing money or ruining your credit history?

Why does the bank take away the PTS?

Standard car loan programs of most banks provide for the withdrawal of the client’s title to the car immediately after registration is completed. Typically, the client is given 10-15 days to register. During this time, you need not only to register the car with the traffic police, but also have time to transfer the title to the bank for safekeeping.

The return of this document is carried out either after the borrower has fully repaid the loan, or after repaying most of the debt. In this way, the bank tries to protect its interests and ensure a greater likelihood of returning its own funds.

The collateral agreement concluded between the client and the bank upon transfer of PTS has three main goals:

While the title is in the bank, the borrower, although considered the full owner of the car, can actually only operate it . But it will no longer be possible to sell, exchange for another, give or pawn such a car. Such actions can only be performed under the control of the credit institution that issued the car loan. This gives the bank certain guarantees that the borrower will pay monthly payments and ultimately repay the entire loan amount.
If the client cannot cope with the credit burden and allows long delays on the loan, then the bank, by court decision, has the right to seize the car from him and put it up for auction. The funds received from the sale of the car will be used to pay off the principal debt to the bank.
Until the end of the pledge agreement, the borrower undertakes to insure the purchased car with a guarantee of returning its full value in the event of an accident or theft. We are talking about expensive CASCO insurance, which provides maximum payout amounts. Thanks to this condition, the bank can count on full repayment of the loan debt in any scenario.

Some credit institutions provide car loans without the obligatory conclusion of a collateral agreement and without the need to transfer the title to the bank for storage. Naturally, the interest on such loans is much higher, and the bank’s rights to the purchased car are exactly the same - the return of the loan car to the bank with subsequent sale is possible on the basis of a court decision. This means that car loans without a collateral agreement are more of a marketing ploy than any real advantageous offer for a potential client .

What options are there for selling a credit car?

Selling a credit car while the title is in the bank is actually not that difficult, but you need to know under what conditions this is possible and choose the most profitable option for yourself. If you understand the essence of the relationship between the bank and the borrower and realize that until the loan is repaid, the car does not actually belong to you, then it will not be difficult for you to understand these options.

Selling a car with the participation of a bank

The most obvious, simple and quick option to sell a car without a title is to contact the bank that issued the loan and inform about the need to sell it. Most banks cooperate with large car dealerships that sell used cars, and the sales procedure takes a minimum of time. But with this option, the cost of the vehicle is determined by the bank itself and in its own interests, and often the final payment amount differs greatly from average market prices. But your credit obligations will be lifted from you in the shortest possible time.

Selling a car yourself

If you want to not only get rid of your loan debt, but also save a little, then you can start looking for a buyer for the car yourself. You can contact dealer networks of car dealerships, the list of services of which includes “redemption of credit cars,” or you can find the new owner of the car yourself - through advertising bulletin boards or through friends. In the first case, the salon will evaluate your car and send its representative to the bank to fully repay the debt and pick up the title. The difference in cost will be given to you, and the car will be offered at the dealership price.

If you are lucky and someone is ready to buy your car at the average market price, then before transferring the car to a new owner, he will have to go to the bank with you and close the loan using part of the funds for the purchase. However, this method of selling a car is only possible if you have taken care of this issue in advance (before the car loan debt has accumulated) and are not very limited in terms of time, or you are very lucky and a buyer is found quickly.

Selling a car by court decision

And finally, the most unpleasant and least desirable option, both for the borrower and for the bank, is the sale of the car by decision of a judicial authority. The fact is that most often the price of the car set by the court will be minimal - sufficient only to pay off the principal debt on the loan (often, even without taking into account accrued interest and late fees). This is not beneficial for either the borrower or the bank. In addition, the sale of a credit car by court decision takes quite a long time, during which the bank does not receive any payments under the loan agreement.

In addition to the options described above, there is also an illegal way to sell a credit car. The fraudster takes out a car loan, transfers the title to the bank, regularly repays the loan for 2-3 months, and then contacts the traffic police, where he writes a statement that the vehicle was lost. As a result, he is given a duplicate, and thus has the opportunity to sell the credit car.

If someone sold a credit car, what happens in this case? - Nothing good. This method of selling a car is considered fraudulent and is criminally punishable! As of 2019, a fraudster can be imprisoned for up to 5 years . To avoid becoming a victim of such criminals, when purchasing a used car, before deregistering it and registering it in your name, you can check with the traffic police to see if a duplicate title has been issued for it.

Video: Review of ways to sell a credit car

So, if you are faced with the need to sell a credit car for some reason, then the lack of a title should not stop you. It is possible to sell such a car, but first of all, it is important to decide what is more important to you: getting rid of the credit burden faster or getting the maximum amount from the sale of the car.

How to sell a credit car

Autocode will tell you in what ways you can legally sell a car on credit.

Is it possible to sell a car on credit?

The answer is yes. Selling a loaned vehicle that is pledged is quite difficult. The transaction will require a lot of time and hassle on the part of the current owner and on the part of the future one.

There are several methods of selling a car on credit, and all of them either involve a mortgage bank or require early repayment of the debt. The autocode will tell you about the possible options in more detail.

Is it possible to sell a credit car if the title is in hand?

Cases when the title of a pledged car is “in the hands” of the borrower, and copies from the bank are rare, but still possible. If this is your case, then you have the opportunity to sell a car without contacting the employees of the creditor bank. You need to sell a credit car as quickly as possible; pay off the debt for the vehicle ahead of schedule before the creditor finds out about the illegal transaction (the bank can find out about such a transaction by contacting the traffic police).

Remember that selling a pledged car without notifying the bank that gave you the money is outside the scope of the law, so such a sale will always carry the risk of being accused of fraudulent actions (Article 159.1 of the Criminal Code of the Russian Federation). This is up to two years in prison.

How to sell a credit car if the title is in the bank: 6 selling methods

There are several ways to sell a car when you do not have the appropriate document in hand.

Wait until the lender finds a buyer on its own

When the borrower stops repaying the loan, he does not follow the terms of the agreement, so the lender (bank), in order to get his money back, begins to look for new owners of the collateral property. And in order for the sale of collateral to take place faster, the bank reduces the price of the car. And, as a rule, the former borrower remains in debt to the credit institution.

Find a new buyer yourself and go to the bank

full repayment of debt;

The seller will need to find a person who is willing to buy a loan car, then enter into an agreement with him, receive the money and repay the loan ahead of schedule. The bank will return the title a few days later, and the seller will transfer it to the new owner of the “iron horse.”

It sounds simple enough, but this method has a huge disadvantage: finding a buyer willing to entrust money to the seller in the hope that after some time he will transfer the title to him is incredibly problematic.

re-issuance of a loan to the buyer;

This method is acceptable when selling a car on credit, but remember that before “tormenting” the new owner of the vehicle, make sure that the bank is ready to take such a step. After all, re-issuance of documents will require both financial and labor losses on the part of the lender.

Before going to the bank, the buyer should collect the same documents as when applying for a regular loan.

Without a title, it is very difficult for a person who wants to sell a four-wheeled vehicle to find a buyer in the automobile market, so Autocode has prepared several more ways to sell a car that is under collateral:

Early repayment (using a consumer loan);

If the loan amount is small and there have been no delays, take out a consumer loan for a short period. Return the money to the bank for early repayment of the car loan. Next, sell your vehicle and pay off your consumer loan.

The method is suitable for those who are going to buy a new car.

Contact a car dealership that works with the TRADE IN system (exchange of an old car). By using this service from a car dealership, you will not need to sell the car yourself; the entire legal side of the transaction will be handled by the auto center; you will only need to pay extra for a new vehicle.

Take into account the disadvantages of this method: the sale of an old car will be carried out at a discount of 15-20 percent of the market value, for a faster sale. And you, as a car buyer, will need to pay a larger amount to the car dealership based on this markdown.

Re-registration of collateral for other property of the borrower;

Find out if the lending bank is willing to consider other property, such as a house, apartment or land. Real estate is more liquid, so there is a possibility that the bank will reissue the mortgage on it. Be aware of the risk involved in this transaction.

By leaving other property as collateral, you can legally sell the credit car to a new buyer.

Sale through the service “urgent redemption of a pledged car”.

There are companies on the market that buy back vehicles that are pledged. Usually they are car pawnshops. Contacting these organizations will not be considered a violation of the agreement with the creditor bank if you warn it in advance. After passing the technical inspection, the owner will be given money, which will be used to pay off the debt to the bank.

How much can you sell a car for on credit?

When selling a credit car, the seller needs to remember that he has competitors in the form of individuals who decide to sell a used car. Therefore, you should remember that you must have the advantage of a reduced price, since the future buyer will need to tinker with the car, which is under collateral.

According to auto experts, the price should be reduced gradually depending on the interest of buyers. To begin with, reduce the cost of the vehicle by 5%; if this price does not give a response, increase this figure. Continue this way until a buyer is found.

If you sell a car to companies or pay off the debt yourself before the expiration of the term, you should not reduce the cost, since all the efforts will fall on your shoulders.

Before selling a pawned car, a competitive advantage will be the presentation of a complete check of yours. The Autocode report will show all the characteristics of the vehicle, the number of owners, thefts, accidents, mileage and much more. To check, go to the main page of the Autocode website and enter the state number. car number.

How to buy a credit car second-hand and not get into trouble

When buying a used car no older than 5 years, it often turns out that the car is on credit and the debt has not yet been paid by the previous owner. There is nothing terrible here, it is much worse when the seller hides this circumstance - after the purchase, the new owner begins a “happy life” with proof of his rightness to credit institutions, which does not always lead to a positive result.

Buying a credit car second hand has the lowest risks when completing a purchase and sale transaction. In such a situation, the buyer receives a guarantee that the car does not have hidden encumbrances in the form of collateral or credit, and buys a vehicle that is absolutely clean from a legal point of view. Here, when making a transaction, you just need to properly protect yourself, then the new owner is guaranteed to receive a car without unpleasant “tails”.

There are two safe purchasing options: buying a car from a seller or buying a loan car from a bank. Each has its own advantages and the buyer needs to choose the one that suits him more for some reason.

Buying a credit car from a seller

If at the time of making a purchase you know that the car is on credit and the seller does not hide this, then in order to complete the purchase it is necessary to completely remove the encumbrance from the car or re-issue the loan to the buyer. Complete removal of the encumbrance means repayment of the loan from the bank, and the bank issues a certificate confirming the removal of the car’s data from the lists of cars with restrictions for sale used by the vehicle registration authorities.

A certificate may be required when re-registering a car to prove that the vehicle is indeed no longer on loan and a purchase and sale transaction can be made with it. It is also often required by vehicle registration authorities if the bank did not manage to remove the vehicle data from the credit list or this information was not updated in the transport database.

Buying a car from the seller directly

In order to safely conduct such a transaction, it is necessary to take care of the correct execution of documents. To complete such a transaction you will need:

Certificate from the bank about the remaining loan amount. It is needed in order to determine the full amount of the unpaid loan. This amount will need to be repaid before the vehicle is re-registered to a new owner.
A notarized receipt stating that the amount paid by the buyer to the credit institution is part of the contract price of the car to remove the encumbrance.
Contract of sale.
Vehicle passport (if the owner has it).

Buying a credit car, if the title is in hand, will look like this. With this package of documents, both parties go to the bank and repay the remaining balance of the loan, after which the bank removes the restriction on re-registration of vehicles. Then you need to receive a bank statement confirming full repayment of the loan and go to the vehicle registration authority to re-register the transaction.

In the case where the PTS is in the bank, you will have to wait a few days until the bank carries out all the necessary procedures and gives the passport to the previous owner or to the new one if there is a general power of attorney.

Another option is possible, when the PTS is in the bank. To do this, you also need to find out the loan amount from the bank. The buyer and the seller enter into a purchase and sale agreement, the buyer writes a notarized receipt for repayment of the full amount after the purchase and the procedure for changing ownership. With these documents, the seller contacts the bank and notifies it of its intention to sell the car.

As a rule, upon receipt of these documents, the bank meets the wishes of the clients, issues a vehicle passport and removes the vehicle data from the list of vehicles with restrictions on registration actions. After re-registration, the new owner repays the remaining loan amount from the bank and receives a certificate of full fulfillment of loan obligations in relation to this car.

Re-issuance of a loan

You can try to re-issue a loan at the bank.
Some credit institutions agree to carry out such a transaction subject to strict compliance with all the bank’s conditions. To perform this procedure, you can use two methods:

The seller writes to the bank a statement of intent to replace the collateral. That is, he asks the bank to transfer the loan collateral from the car to another property. For example, an apartment, a dacha and other movable or immovable property. If such a procedure is approved by the bank, you must wait until the restrictions on the car are lifted and re-register it to the new owner.
The buyer writes an application to the bank to transfer credit obligations to himself. If the bank agrees, then the buyer is issued a certificate from the bank about the change of persons in the obligation to repay the loan and a title to re-register the car to the new owner. It should be borne in mind that if the bank agrees to carry out such a procedure, the buyer will have to provide the bank with all the necessary documents to apply for a loan and prove his solvency.

Buying a credit car from a bank

To complete such a transaction, you need to contact the bank with a statement of intent to purchase a car. An indispensable condition for completing such a transaction is the conclusion of an additional agreement on the mandatory repayment of the loan after the re-registration of ownership rights, indicating the deadline for fulfilling the obligation. It should be borne in mind that this method is the most risky for a bank, so not many banks agree to process a transaction this way.

If the decision on the transaction is positive, you need to obtain from the bank a certificate of intent to repay the loan after re-registration of the car and go to the place of registration to re-register the vehicle. After re-registration of the car, the buyer must deposit the required amount into the bank account within the specified period. After the bank receives the money, you will be given a certificate confirming the complete removal of restrictions from the car.

Purchasing a credit car with a PTS from a bank differs only in that, along with a certificate of intent to repay the loan after making the purchase, you are also issued a vehicle passport, which will need to be returned to the bank after the re-registration procedure is completed. The PTS will remain there until the loan is fully repaid.

Methods and rules for selling a credit car

A car owner who bought a car on credit often faces situations where he is deprived of financial income. The loan amount must be repaid regularly, so he is wondering about the possibility of selling the loan car in order to pay off the bank. It would be useful for the borrower to know about ways to legally sell a car that is pledged, early repayment of the loan, and actions that can lead to problems with the law.

Is it possible to sell a credit car?

Financial institutions that issued a car loan treat this responsibly, and an important point in the agreement with the bank is the clause on the new owner of the car handing over the vehicle passport for safekeeping. If by chance this document is not submitted to the bank, then the car will still be under collateral.

An independent attempt by a car owner to sell or take another action with a credit car may be regarded as fraud. If the borrower is unable to make payments, then the best option would be to contact a lender who is not interested in finding a buyer and selling your car. It is possible to sell a car that is pledged together with the lender.

Car collateral for car loan

A car purchased on credit is transferred to the buyer for use under certain conditions:

the client pledges the vehicle to the bank;
the buyer signs an obligation, which provides a deadline for registering the vehicle, and indicates the date when the client must return the title with a registration mark in his name;
if the document is not returned, the lender reserves the right to apply penalties;
the client is responsible for the contents and risk of accidental damage to the collateral;
The right to the collateral, that is, the vehicle, arises from the moment the client receives ownership.

The PTS is transferred according to the acceptance certificate, drawn up as an annex to the agreement, and signed by the bank representative and the client. Also, the car buyer is obliged to pick up the vehicle’s passport after full payment under the loan agreement.

The standard storage period is 1 year, after which the bank has the right to send the PTS by mail with notification to the client’s last known address.

Some banks include a clause in their loan agreements that makes the client responsible for the new debtor if ownership is transferred to him. Thus, the buyer is financially responsible for the purchased car in any case.

How to do it legally

Banks are interested in making their profit, and will definitely consider the client’s situation in order to find a solution. It is best to contact the management of the financial institution in a timely manner, outlining the essence of the problem. It is possible that permission to sell the car will be obtained with the condition that the balance of the debt will be paid. Then the car owner will independently look for a buyer who will pay off the debt and hand over the remaining amount.

Another option may be to re-register the collateral. The borrower can remove the encumbrance from the loan car if he offers liquid property (house, land, apartment) as collateral, which the bank can sell if the car borrower is insolvent.

Another popular method is refinancing. A citizen can take out a loan for consumer purposes, receive it and return the balance of the debt for the car, from which the encumbrance is automatically removed. After this, you can legally and quickly sell the credit car if the client has the title in hand. If this document is in the bank, then after repayment of the required amount it will be returned upon request.

Financial companies that provide car loans cooperate with car dealerships that can sell the loaned car. This method is not the best, since the car owner will have to pay for the services of an intermediary.

How to sell if you have a title in your hands

When, by chance, the car’s passport is kept by the borrower, and he wants to sell the car, then the transaction is very risky. It turns out that the buyer will be given false information about an essential clause of the contract.

A deceived person may invalidate the transaction through the court, and under the terms of the loan, the borrower will still have to pay the balance of the debt.

The bank can also file a claim regarding the client’s illegal actions. The Criminal Code of the Russian Federation (Article 159.1) defines liability for fraud in lending by restriction of freedom for up to two years or a fine of up to 120 thousand rubles. It is also possible to apply corrective labor for up to one year.

If there is an urgent need to sell the car, it is better to immediately inform the lender, agree with him on the fact of sale and pay the remaining amount. If a critical situation has arisen, then selling a credit car, if you have a title in hand, is possible if the balance of the debt is paid on the same day. You should know that banks can easily check who owns the car using the traffic police database.

At the car showroom

Financial institutions that issue loans for the purchase of cars always cooperate with a number of car dealerships. They deliberately lower the real cost of the car in order to sell it faster and receive their percentage from intermediary services. There are also positive aspects here.

For example, a person doesn’t like a car, he wants to change it or sell it. Having notified the lender in advance, he can leave it in the showroom for sale, and purchase a new technical device there. The car dealership will pay the bank, and the owner will only pay extra for a new car. The automobile center also deals with legal issues.

Sale by agreement with the bank

If the bank agreed to the sale and invited the client to find a buyer himself, then without a title (original) it is extremely difficult to sell a car on credit. Few people will agree to give money and trustingly wait for documents.

You can reissue the loan to the new buyer of the car. However, not all banks take such actions, because the operator will have to spend time applying for a new loan, reviewing the package of documents of the intended borrower and agreeing on the amount. Not every buyer will agree to such a procedure, much less provide a certificate of income, questionnaires and other documents. It's easier for him to find another car.

Re-registration of collateral

If the client has real estate that is of interest to the bank, then it is possible to draw up an additional agreement to the contract and change the object of collateral. In this case, the encumbrance on the car will be removed and it can be sold legally. The borrower will have to repay the remaining loan amount according to the old schedule. Re-registration of the collateral is a risky step, especially if the object is an apartment where the car owner’s family lives.

Sale to a buyout organization

According to the law, it is impossible to sell a credit car if the title is in the bank. However, there are organizations involved in the purchase of such cars. They independently conduct an expert assessment of the technical condition, review the loan agreement, and estimate the maximum possible cost.

The company's specialist, on behalf of the borrower, repays the loan debt, and the difference between the estimated value and the amount of the paid debt is transferred to the car owner. The purchase of a credit car by an organization is carried out quickly. After the encumbrance on the car is removed, the final transaction is completed.

How to sell if the PTS is in the bank

A competent buyer will not conduct a transaction with a car owner who wants to sell a credit car if the title is not in hand, but is stored in the bank. If such a person is found, then on a trust basis he can repay the loan for the owner of the car, and after the end of the loan obligation and receipt of the title, complete the transaction.

Early repayment of debt

Provided that a clause is included in the loan agreement, a citizen can pay off the loan balance ahead of schedule. This action will help save on interest, especially when making payments in the first half of the term. When closing a loan, it is advisable to ask the bank for a certificate confirming that there are no claims against the borrower. From this moment on, the car will not be the subject of collateral and it can be sold.

Sale based on a duplicate title

There are cases when the owner of a car applies to the traffic police with an application to issue a copy of the PTS due to the loss of the original. After receiving a duplicate vehicle passport, the citizen plans to sell the car on credit. Such actions are fraud and fall under criminal charges. When purchasing a car, it is better to ask the traffic police inspector whether a duplicate PTS has been issued.

Responsibility for illegal sales methods

According to the Civil Code, the property being sold must be free of bank encumbrances. Violation of this clause may become grounds for declaring the transaction invalid. In addition, the seller may be accused of fraud and intent. Then the act will be punished under a criminal article from a large fine (up to 120 thousand rubles) to imprisonment for a period of 2 years. Credit debts will still have to be repaid.