# selling a bank financed car



## Dubai here i come! (Aug 7, 2013)

Hi,

Im selling my car which is bank financed. 

How does the process goes. Ofcourse the buyer gives me the money and ill pay the bank and get a clearance letter from the bank. 

But i need to understand how will the buyer give me the money without taking the car..... it will take a day or 2 for clearance from the bank.

Need suggestions on this goes...


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## Stevesolar (Dec 21, 2012)

Hi,
I agree, it is a bit difficult as it requires a good degree of trust on the part of the buyer.
We will probably trade our cars in at a dealer when we come to change them, for the above reason (although we will take a hit on the price compared with selling privately).
In an ideal world, you would find some cash to settle the finance and get the clean title - before advertising the car for sale. Of course, this is often not possible (and the reason thousands of cars get abandoned at the airport, each year).
Best of luck
Steve


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## expatteacher2015 (Mar 27, 2015)

If the buyer is taking finance with the same bank you can organise a transfer of the debt at the bank. Otherwise, you are expected to clear the loan first and then sell the car. Of course, the other option is sell back to the dealer - they often have the ability (wusta or money!) to settle the loan for you. Much easier, but less money for you...


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## w_man (Apr 16, 2010)

Back home I once took the seller directly to the finance manager of the dealership and they made the outstanding payment directly to the institute. The buyer made the remaining payment to me and i signed the car over to him and he took the car with him. That way he knew the loan is paid off (and will get the papers in a few days) and i have my money.

Wonder if you could do the same here?


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## Stevesolar (Dec 21, 2012)

w_man said:


> Back home I once took the seller directly to the finance manager of the dealership and they made the outstanding payment directly to the institute. The buyer made the remaining payment to me and i signed the car over to him and he took the car with him. That way he knew the loan is paid off (and will get the papers in a few days) and i have my money.
> 
> Wonder if you could do the same here?


Hi,
Over here, the final ttansaction and handover of the vehicle is done at an RTA vehicle test centre - they need evidence that you own the car and that it is not on finance.
That is why you need to sort out this bit - before you can sign over the car to the new owner.
Cheers
Steve


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## Dubai here i come! (Aug 7, 2013)

w_man said:


> took the seller directly to the finance manager of the dealership and they made the outstanding payment directly to the institute. The buyer made the remaining payment to me and i signed the car over to him and he took the car with him. That way he knew the loan is paid off (and will get the papers in a few days) and i have my money.
> 
> Wonder if you could do the same here?


Well this is what im also thinking, of taking the buyer to the bank so he is confident.


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## The Rascal (Aug 6, 2014)

Take the buyer to the bank, do the transaction there, he pays the loan off, you get your money, he takes the car, 3 days later you meet at the RTA and sort the changeover out.

Not rocket science, providing both parties agree.


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## w_man (Apr 16, 2010)

The Rascal said:


> Take the buyer to the bank, do the transaction there, he pays the loan off, you get your money, he takes the car, 3 days later you meet at the RTA and sort the changeover out.


Hmm - I guess there's risk associated with that. If the buyer takes the car, he's basically driving around in a car which legally (as per RTA) still belongs to you. So any/all traffic violations are still your problem.

Does it take 3 days for the bank to inform RTA? Earlier this year when I paid off my car loan, I received a text message from RTA the same day informing me that they have received the update from my bank.


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## The Rascal (Aug 6, 2014)

w_man said:


> Hmm - I guess there's risk associated with that. If the buyer takes the car, he's basically driving around in a car which legally (as per RTA) still belongs to you. So any/all traffic violations are still your problem.
> 
> Does it take 3 days for the bank to inform RTA? Earlier this year when I paid off my car loan, I received a text message from RTA the same day informing me that they have received the update from my bank.


It depends on how quick the bank are, took mine a few days, but that was 7 years back!

I don't think you can mitigate all risk in buying or selling and I understand what you're saying. From the buyers point of view, I wouldn't pay over any cash on something that had an outstanding loan on it - other than refundable deposit.

If the bank update details with a release update to RTA there and then, so much the better. However this country being what it is, i can't see that occurring.


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