How to Sell a Car With a Loan

The second-hand car market is expanding day by day. Many buyers with a limited budget look into the second-hand or used car market for a premium quality brand at a second-hand price. You can sell your second-hand car any time and even instantly if there is any medical urgency or you are shifting to some other city all of a sudden. These days, online platforms are making every type of vehicle dealing easy and fast. However, selling a car with a loan on it is a little bit tricky. 

How to sell a car with a loan – know the basics

Taking car loans for buying cars is too common these days. Every car loan has a respective lock-in period and related terms and conditions. One of the most important terms that generally included in all types of car loans or vehicle loans is that you cannot pay back the whole amount before selling the car. You must pay a certain number of EMIs before foreclosing. Even if you one to foreclose it, the bank will charge a pre-closing charge. 

This means as an owner of a car with a loan you need to understand certain aspects of the selling procedure. Let’s discuss how to sell car online you have a loan on more elaborately:

• Calculate properly

If you have a loan for which you have paid a few EMIs already, you must calculate how much loan is due, what will be the foreclosure amount, what is the current market price of the car, what is the depreciation of the car? Keep in mind that if the current demand for the car is low, it’s depreciation value will be high. You can get the help of OBV fair market value for calculating the current market price of the car. So, all these calculations will help you to decide on the loan like how much you need to pay right now for foreclosure, whether your car price will make that foreclosure amount along with some profit, and whether it is the right time to consider selling it. Taking the help of online car selling sites will solve all these problems instantly. 

• Take care of documentations 

The registration certificate (RC) should show your name and address right. If your car is brought with a bank loan, RC shows that clearly. You have to clear any loan amount due before selling the car. After clearing the due loan amount, you have to collect the NOC of the bank and show it of RTO. On producing it, RTO updates the loan status of the car. This is the most important part of the car’s selling process. This takes some days to complete. If you have a plan of selling the car, start the process early to complete this step as soon as possible. 

• Few ways of paying the loan 

You can arrange the amount from the buyer directly and pay it to the bank. Of course, this will be possible if the buyer wants to make the payment in this way. However, the buyer may also apply for a loan. In that case, he’ll not pay you that amount in a lump sum. But if the bank loan amount is more than the selling price of the car, you’ll have to pay the remaining amount out of your pocket. While selling a car with a loan on it, do not hide anything from the potential buyers. If you have contacted an online platform for selling the car there remains a keen chance any old car dealer will show interest in buying it. In any case, whether a dealer or individual, don’t hide anything regarding the loan. 

Sell used cars with due loans online

• A prolific online platform of automobile selling and buying helps you sell a car legally through an easy selling process. 
• Since there is no middleman margin on the online platform your buyer gets the car at the right price. You too don’t need to pay anything to anyone. 
• Get your car’s price evaluated with the help of OBV fair market value which is India’s most trusted automobile pricing engine in India. 
• You get the opportunity to show your car to thousands of online buyers including individuals and dealerships. 
• You can sell your car using any of the three processes, viz. fixed price, best price offer, and auction.